3 Group

CK Hutchison touted an expectation of future improvements in 3 Group Europe’s financial performance in its H1 earnings report, as it pursues an asset-light strategy, creates new 5G revenue streams and assesses in-market consolidation.

Parent of 3 Group CK Hutchison booked an impairment charge of HKD15. 5 billion ($2 billion) on its Italian mobile operation in H1, blaming heightened competition in the market for lowering expectations on 5G-led growth.

Multinational CK Hutchison reported plans to spin-off mobile tower assets in eight markets was on track to be completed by mid-2020, as its telecoms division booked increased revenue for 2019 despite a drop in its European customer base.

CK Hutchison’s 3 Group partnered with Cisco Jasper to expand its global IoT offering, with a particular focus on connected cars development, security, automation and transportation and logistics services.

3 Group’s 2016 earnings were boosted by the formation of the Wind 3 joint venture in Italy and “promising results and underlying operational growth” from its other operations in Europe.

3 Group will “continue to explore growth opportunities through potential consolidation in markets which the Group currently operates in,” indicating it will continue to be a key dealmaker in the European market.

3 Group Europe has benefited from “improvements in the underlying operating performances and a well-disciplined operating and capital expenditure profile”, parent Hutchison Whampoa said.