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Hutchison Whampoa
TechEnterprises

Lower mobile revenue cuts Hutchison Telecom’s interim profit

Hong Kong’s second-largest telecommunications services provider gives no update on the bidding for its fixed-line network business

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Hutchison Telecommunications Hong Kong chief executive Cliff Woo Chiu-man. Photo: David Wong
Bien Perez

Hutchison Telecommunications Hong Kong, operator of the city’s second-largest mobile network, has warned of some arduous times ahead in the second half of this year after reporting a 10 per cent year-on-year drop in interim net profit.

The operator, a subsidiary of tycoon Li Ka-shing’s CK Hutchison Holdings, did not address market speculation over the bidding for its fixed-line network business, which recorded a three per cent year-on-year increase in revenue in the six months ended June 30.
“Market conditions and competition look set to remain challenging in the second half of 2017,” Hutchison Telecom chief executive Cliff Woo Chiu-man said in a statement on Tuesday.
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“However, carriers, corporations and consumers alike appreciate the benefits of connectivity, which will drive continued growth in data consumption.”

The company’s interim net profit reached HK$324 million (US$41.5 million), down from HK$362 million in the same period last year, due mainly to a 10 per cent year-on-year decline in sales at its mobile business.

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Consolidated revenue, comprising service and hardware turnover from its mobile and fixed-line businesses, dropped 6 per cent to HK$5.1 billion from HK$5.4 billion a year ago.

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