Hutchison Telecom eyes improved mobile business after decline last year

Hutchison Telecommunications Hong Kong, which posted a decrease in overall revenue and net profit last year, aims to improve its mobile business despite increased competition from the merger between HKT and CSL New World Mobility.

In its filing with the Hong Kong stock exchange yesterday, Hutchison Telecom said the positive outlook was based on the company's shift to non-subsidised handset contracts, the removal of unlimited data offerings and introduction of new tariff plans to its 3.8 million mobile subscribers.

Chief executive Peter Wong King-fai said: "Growing profit contribution from our fixed-line business provides a cushion against volatility."

Hutchison Telecom, a subsidiary of Hutchison Whampoa, operates its mobile services in Hong Kong and Macau through its Three Hong Kong brand, while fixed-line operations fall under Hutchison Global Communications.

Lower turnover in Hutchison Telecom's mobile business last year resulted in a 25 per cent decline in overall net profit to HK$916 million from HK$1.21 billion in 2012.

Consolidated earnings before interest, tax, depreciation and amortisation - a measure of a company's operating profitability - dropped 11 per cent to HK$2.67 billion from HK$3 billion.

Overall revenue fell 18 per cent to HK$12.77 billion from HK$15.53 billion.