Orange, the British mobile phone company 48.22 per cent owned by Hutchison Whampoa, is set to report losses of more than GBP100 million (about HK$1.19 billion) tomorrow. The losses will be in its first set of interim results as a publicly listed company. ABN Amro Hoare Govett is predicting interim losses of GBP121 million, and the company itself has long warned shareholders that it did not expect to produce a pre-tax profit until 1998. The consensus among London analysts is that losses for the first half will reach GBP124.4 million. Analysts still regard Orange as being at the height of a capital intensive development stage, and operating profits are not expected until the end of next year. The British mobile phone market, which has three other main players, is growing increasingly competitive and rival companies are attempting to slow Orange's growth by reducing their own call charges and launching intensive marketing campaigns. ABN-Amro telecommunications analyst James McCafferty said trading at Orange was still strong, with market share of net new connections remaining about the 30 per cent level, or 100,000 net new connections per month. Last month, Orange's second-quarter operating results revealed subscriber growth up 197 per cent to 573,000, and that its churn rate - the rate at which new subscribers drop out after a year - was 17.6 per cent, compared with 18.1 per cent for the whole of 1995, marking it as the only British mobile phone operator with a churn below 20 per cent. Orange has doubled its market share during the past year to about 9 per cent, and there is expected to be no fall from the current average revenue per subscriber of GBP37 per month, or GBP444 per year. For the year as a whole, losses of up to GBP250 million are expected, but there is little debt on the group's balance sheet after having raised more than GBP1 billion in non-recourse debt financing, and a further injection of funds at flotation.