logo.gif) News Release 7th August, 2001 |
Hutchison Telecommunications (Australia) Limited ACN 003 677 227 Level 3, 504 Pacific Highway St.Leonards NSW 2065 Ph: 02 9964 4646 Fax: 02 9964 4649 |
Hutchison Telecommunications (Australia) Limited (HTAL) today announced its results for the first half of 2001. The Company's business growth has been modest with total subscribers increasing by 8.4% and revenue increasing by 2% since 31 December 2000.
CEO Barry Roberts-Thomson said, "Building new networks and growing market share requires major investment and, as I said at the AGM earlier this year, trading losses will continue to be incurred as we build a sustainable business. The after tax operating loss for this first half is $91.1 million, less than the previously announced estimate of around $100 million."
The key activities of the Company for the period have been continued focus on the development and growth of the Orange Mobile business, the expansion of its 3G activities and arrangements for the establishment of its 3G joint venture with Telecom Corporation of New Zealand Limited (TCNZ)
In the Orange Mobile business, efforts were directed at further developing the value proposition of the Orange services, improving network coverage, bringing in key skills across the business, improving cost efficiencies and strengthening the sales and distribution activities.
Total subscriber numbers including Orange Mobile, GSM Resale and Paging grew by 8.4% to 509,965. Total revenue for the half was $212.5 million, up 2% since the prior reporting period. EBITDA fell to a loss of $77.5 million, reflecting the increase in subscriber acquisition costs and operating expenses necessitated by the current stage of growth. Net Profit After Tax recorded a loss of $91.1 million, compared to a loss of $22.3 million for the prior comparable period.
Orange Mobile services contributed 19% of the total revenue. Total subscribers on the Orange network were 129,523, a 73% increase from December 31, 2000. Although there has been general industry-wide pressure on customer revenues, the post paid Orange Mobile average revenue per user was $67 per month.
Mobile Resale contributed around 70% of total revenue, declining by 11% from the prior comparable period to $149.5 million. Consistent with the focus on acquiring and retaining subscribers that deliver acceptable profitability, mobile resale subscriber numbers declined by 5% over the first half of the year to 279,328 at 30 June, 2001. None of these subscribers were prepaid customers. Average revenue per user for this period remained strong at $78 per month.
In line with expectations, during the six month period subscriber numbers for Paging and Messaging products fell by 7% to 73,818, and subscribers to the value added services of long distance telephony resale and Internet increased by 21% to reach 27,296.
Network cost of sales, as a percentage of revenue, remained steady at 60%, compared to the previous six month period but subscriber acquisition costs, which include commissions and handset subsidies, increased as a percentage of revenue.
Other operating expenditure rose from 45% of revenue to 49%, driven largely by increases in advertising and promotion costs. These increases have been offset by improvements in bad debt levels.
"Going forward, the key impacts on our business will be Mobile Number Portability, the 3G project and continued expansion of the Orange mobile business plan, whilst ensuring an appropriate cost base is maintained for our business. We will continue to expedite the 3G project in line with Hutchison Whampoa Limited's international focus on 3G technologies, and we will seek to exploit regional synergies from our alliance with TCNZ, " said Mr Roberts-Thomson.
"We are committed to succeeding in the delivery of high quality mobile communications to Australia. The Orange mobile network will continue to offer quality voice services at competitive prices and from the end of 2002/early 2003, we will provide innovative 3G services. We have a great deal of work to do to get us there but I am confident that we have the people, the business plan and the backing to ensure we deliver to promise."
Media Enquiries: Marie Kelly 02-9964 4831 or Lynette Innes 02-9964 4883
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