Hutchison Telecom Announces 2009 Annual Results
HONG KONG, March 4 /PRNewswire-Asia-FirstCall/ --
Key Highlights:
-- Group mobile customers grew 98% to approximately 13 million
-- Profit for the year of HK$5.8 billion
-- Israel operation disposal in October with a gain of approximately
HK$6.3 billion
-- Spin-off of Hong Kong and Macau operations in May
Financial Highlights:
2008 2009
(Restated)
HK$ millions HK$ millions
Turnover 1,808 1,856
Operating loss (813) (2,069)
Loss for the year from continuing operations (728) (2,736)
Profit from discontinued operations 2,396 8,517
Profit for the year 1,668 5,781
Profit attributable to equity holders of the
Company 1,132 4,940
Basic earnings per share attributable to equity
holders of the Company HK$0.24 HK$1.03
Hutchison Telecommunications International Limited ('Hutchison Telecom'; 'the Group'; 'the Company'; SEHK: 2332; NYSE: HTX) today announced its 2009 annual results and its fourth quarter key performance indicators. In 2009, the Group reported strong subscriber growth in its principal growth markets and again realised value for shareholders. Profit for the year was approximately HK$5.8 billion.
During the year, Hutchison Telecom continued its focus on driving growth and developing scale in its core growth markets off the back of further network rollout and customer acquisition. In Indonesia, the business continued to experience solid growth in its customer base, and in Vietnam, the Group launched its GSM services under the Vietnamobile brand in the second quarter. The Group realised value for shareholders with the spin-off of the Hong Kong and Macau operations in May 2009, followed by the disposal of its entire indirect interest in the Israel operation in October 2009.
Dennis Lui, Chief Executive Officer of Hutchison Telecom, said: "2009 saw the Group unlock significant shareholder value again. We have created, maximised and delivered value for our shareholders over the five years since listing - an achievement that has been based on pursuing carefully chosen opportunities with a measured approach."
"Looking into 2010, we will continue to work on building out our principal growth markets to a fully competitive state," Mr Lui added.
In 2009, Hutchison Telecom added approximately 6.3 million customers to end the year with a customer base of approximately 12.8 million, which reflected an annual growth of approximately 98% on a like-for-like basis, that was driven mainly by the ongoing expansion of the network coverage in Indonesia and the relaunch of its business in Vietnam.
Turnover rose 2.7% year-on-year to HK$1,856 million. The increase was driven mainly by the larger Indonesia operation and the revenue generated by the newly launched GSM services in Vietnam, offset in part by a revenue decrease in the Group's Sri Lanka and Thailand operations.
Loss before interest, tax, depreciation and amortisation ('LBITDA') increased to HK$1,784 million compared to HK$1,632 million in 2008. This was mainly due to the higher operating expenses incurred from the expanded network rollout in Indonesia and Vietnam.
The Group operating loss from continuing operations was HK$2,069 million compared to HK$813 million in 2008. Excluding the profit on disposal of base tower sites and other one-time items, the operating loss would have been HK$2,492 million compared to HK$1,984 million in 2008 on a like-for-like basis.
Profit for the year was HK$5,781 million, which included the gain of approximately HK$6,333 million on disposal of the Group's entire indirect stake in Partner Communications Company Ltd.. Profit attributable to equity holders of the Company was HK$4,940 million and basic earnings per share was HK$1.03 compared to HK$0.24 in 2008.
During the year, the Company paid an interim dividend by way of a distribution in specie of the entire share capital of Hutchison Telecommunications Hong Kong Holdings Limited. The Board did not recommend a final dividend for the year ended 31 December 2009.
Operations Review Highlights:
Indonesia - The Group's Indonesia operation PT. Hutchison CP Telecommunications ('HCPT') further expanded its customer base by 89.5% year-on-year to over 8.5 million customers. Turnover grew 93% yearly to HK$608 million, driven mainly by customer growth. LBITDA was HK$1,300 million, primarily due to the continued expansion of the network and resultant costs. The net profit on disposal of investments and others of $423 million reduced the operating loss for the year to HK$1,456 million. Currently, HCPT has over 8,800 base stations on-air covering 76% of the population of Indonesia. Capital expenditure on fixed assets in 2009 was HK$2,864 million compared to HK$3,030 million in 2008.
Vietnam - The Group's Vietnam operation Vietnamobile achieved solid results in its first nine months of operation and ended the year with a customer base of approximately 2.5 million, supported by a network of over 3,800 base stations on-air and 80% population coverage. Turnover for the year was HK$141 million and LBITDA was HK$361 million. Operating loss for the year was HK$433 million and capital expenditure increased to HK$646 million compared to HK$259 million in 2008.
Sri Lanka - 2009 saw some improvement in the performance of Hutchison Telecommunications Lanka (Private) Limited despite unstable economic conditions and fierce competition. New management and a renewed focus on sales and distribution and marketing activities resulted in some positive customer growth in the second half, although the customer base overall decreased 12.2% year-on-year to 779,000, compared to 887,000 in 2008. Turnover was down 61.9% to HK$61 million compared to HK$160 million in 2008. At the end of 2009, the Sri Lanka operation had over 770 base stations on-air and over 60% population coverage.
Thailand - The Group remains in ongoing discussions to exit this operation by way of sale to CAT Telecom Public Company Limited.
Restatement of 2008 Accounts:
As disclosed previously in the Company's 2008 annual report and 2009 interim report, Hutchison Telecom has been in discussion with the US Securities and Exchange Commission ("SEC") regarding the accounting treatment of the sale and leaseback of base station tower sites entered into by the Group's Indonesia operation.
At the conclusion of these discussions, the SEC informed the Company that, in their judgment, the leaseback transaction should be classified as a finance lease under International Financial Reporting Standards.
In view of the judgmental aspects of this complex issue, the Company has decided to amend and restate the previously reported accounts for the year ended 31 December 2008 to reflect the accounting for the transaction as a finance lease.
The effect of this restatement on the 2008 accounts is to reduce the operating profit previously reported of HK$4,060 million by HK$1,163 million and reduce the profit attributable to equity holders of the Company for 2008 previously reported of HK$1,883 million by HK$751 million.
The financial highlights above reflect both the deconsolidation of the financial results of its Hong Kong and Macau and Israel operations as well as this restatement.
The Group has received confirmation from the offeror, Hutchison Telecommunications Holdings Limited, that the proposal for privatisation remains unaffected by the Company's decision to restate its previously reported accounts for the year 2008. For details of the proposal for privatisation, see the joint announcements of the Offeror, Hutchison Whampoa Limited and the Company dated 8 and 28 January 2010 and the announcement of the Company dated 15 January 2010 which have been posted on the Company's website and submitted to the SEC under Form 6K.
Note:
Hutchison Telecom will not be hosting any press conference or analyst conference call on the 2009 annual results announcement pending the proposed privatisation of the Company.
About Hutchison Telecommunications International Limited
Hutchison Telecommunications International Limited ("Hutchison Telecom" or "the Group") is a leading provider of telecommunications services. The Group currently offers mobile telecommunications services in Indonesia, Vietnam, Sri Lanka and Thailand, operating brands "Hutch", "3" and "Vietnamobile".
Hutchison Telecom is a listed company with American Depositary Shares quoted on the New York Stock Exchange under the ticker HTX and shares listed on the Stock Exchange of Hong Kong under the stock code 2332. A member of the Hong Kong-based Hutchison Whampoa Group, Hutchison Telecom is committed to providing superior telecommunications services in dynamic markets. For more information, see http://www.htil.com .
Cautionary Statements
This press release contains forward-looking statements. Statements that are not historical facts, including those about the Company's beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore undue reliance should not be placed on them. Forward-looking statements speak only as of the date they are made, and the Company has no obligation to update any of them publicly with respect to any new information or future events. Forward- looking statements involve inherent risks, uncertainties and assumptions. The Company cautions you that if these risks or uncertainties ever materialise or the assumptions prove incorrect, or if a number of important factors occur or do not occur, the Company's actual results may differ materially from those expressed or implied in any forward-looking statement. Additional information as to factors that may cause actual results to differ materially from the Company's forward-looking statements can be found in the Company's filings with the United States Securities and Exchange Commission.
-- Tables to Follow --
Unaudited Key Performance Indicators for Fourth Quarter 2009
Customer Base Q4 2009 Q3 2009
31 December 2009 30 September 2009
Total Postpaid Prepaid Total Postpaid Prepaid
Market ('000) ('000) ('000) ('000) ('000) ('000)
Indonesia 8,529 18 8,511 7,311 16 7,295
Sri Lanka 779 -- 779 563 -- 563
Vietnam 2,498 2 2,496 1,019 1 1,018
Customer Base Q2 2009 Q1 2009
(Continued) 30 June 2009 31 March 2009
Total Postpaid Prepaid Total Postpaid Prepaid
Market ('000) ('000) ('000) ('000) ('000) ('000)
Indonesia 6,434 12 6,422 5,305 12 5,293
Sri Lanka 536 -- 536 722 -- 722
Vietnam 624 1 623 -- -- --
Customer Base Q4 2008
(Continued) 31 December 2008
Total Postpaid Prepaid
Market ('000) ('000) ('000)
Indonesia 4,501 11 4,490
Sri Lanka 887 -- 887
Vietnam -- -- --
Notes:
(1) A customer is defined as a Postpaid Customer or a Prepaid Customer
who has a Subscriber Identity Module (SIM) or Universal Subscriber
Identity Module (USIM) that has access to the network for any purpose,
including voice, data or video services.
(2) Postpaid Customers are defined as those whose mobile
telecommunications service usage is paid in arrears upon receipt of
the mobile telecommunications operator's invoice and who have not been
temporarily or permanently suspended from service.
(3) Prepaid Customers are defined as customers with prepaid SIM cards or
prepaid USIM cards that have been activated but not been used up or
expired at period end.
A new prepaid customer is recognised upon making the first call or
registration/activation.
(4) All numbers quoted on the basis of the total customer base of the
operation irrespective of the Company's ownership percentage
(5) All numbers quoted as at last day of the quarter.
(6) The data for Hong Kong (incl Macau), Israel and Thailand are
excluded.
ARPU(1) Q4 2009 Q3 2009
31 December 2009 30 September 2009
Market Currency Blended Postpaid Prepaid Blended Postpaid Prepaid
Indonesia IDR 11,330 193,579 10,949 11,216 193,509 10,846
Sri Lanka LKR 90 -- 90 114 -- 114
Vietnam VND 34,621 369,368 34,338 47,263 306,630 46,977
ARPU(1) (Continued) Q2 2009 Q1 2009
30 June 2009 31 March 2009
Market Currency Blended Postpaid Prepaid Blended Postpaid Prepaid
Indonesia IDR 10,744 201,935 10,316 10,361 182,534 9,963
Sri Lanka LKR 119 -- 119 148 -- 148
Vietnam VND 68,325 250,043 68,042 -- -- --
ARPU(1) (Continued) Q4 2008
31 December 2008
Market Currency Blended Postpaid Prepaid
Indonesia IDR 10,800 133,596 10,507
Sri Lanka LKR 164 -- 164
Vietnam VND -- -- --
Notes:
(1) The monthly Average Revenue Per User (ARPU) is calculated as the
total Service Revenues for the month divided by the simple average
number of activated customers for the month.
The monthly ARPU for the quarter represents the average of the
monthly ARPU in the quarter.
(2) Service Revenues are defined as the direct recurring service revenues
plus roaming revenues.
(3) The data for Hong Kong (incl Macau), Israel and Thailand are
excluded.
MOU(1) Q4 2009 Q3 2009
31 December 2009 30 September 2009
Market Blended Postpaid Prepaid Blended Postpaid Prepaid
Indonesia 39 326 38 49 362 48
Sri Lanka 63 -- 63 79 -- 79
Vietnam 182 135 182 162 176 162
MOU(1) (Continued) Q2 2009 Q1 2009
30 June 2009 31 March 2009
Market Blended Postpaid Prepaid Blended Postpaid Prepaid
Indonesia 55 375 54 55 342 55
Sri Lanka 77 -- 77 77 -- 77
Vietnam 221 156 221 -- -- --
MOU(1) (Continued) Q4 2008
31 December 2008
Market Blended Postpaid Prepaid
Indonesia 55 225 55
Sri Lanka 74 -- 74
Vietnam -- -- --
Notes:
(1) The monthly Minutes of Use (MOU) is calculated as the total minutes
carried over the network (2G total airtime usage + 3G voice and video
usage, but excluding inbound on-net minutes) for the month divided by
the simple average number of activated customer. The monthly MOU for
the quarter represents the average of the monthly MOU in the quarter.
(2) The data for Hong Kong (incl Macau), Israel and Thailand are
excluded.
Churn(1) Q4 2009 Q3 2009
31 December 2009 30 September 2009
Market Blended Postpaid Prepaid Blended Postpaid Prepaid
Indonesia 24.9% 8.4% 24.9% 24.7% 6.3% 24.7%
Sri Lanka 0.6% -- 0.6% 1.5% -- 1.5%
Vietnam 8.4% 3.6% 8.4% 9.3% 9.1% 9.3%
Churn(1) (Continued) Q2 2009 Q1 2009
30 June 2009 31 March 2009
Market Blended Postpaid Prepaid Blended Postpaid Prepaid
Indonesia 24.9% 12.8% 25.0% 24.8% 4.8% 24.9%
Sri Lanka 10.8% -- 10.8% 7.1% -- 7.1%
Vietnam 0.3% 10.6% 0.3% -- -- --
Churn(1) (Continued) Q4 2008
31 December 2008
Market Blended Postpaid Prepaid
Indonesia 24.2% 4.1% 24.3%
Sri Lanka 4.4% -- 4.4%
Vietnam -- -- --
Notes:
(1) The monthly churn % is calculated as the average number of
disconnections (net of reconnection and internal migration between
networks) for the month divided by the simple average number of
activated customers for the month. The monthly churn % for the quarter
represents the average of the monthly churn rates in the quarter.
(2) The data for Hong Kong (incl Macau), Israel and Thailand are
excluded.
The Board wishes to remind investors that the above key performance
indicators are based on the Group's unaudited internal records.
Investors are cautioned not to unduly rely on such data.
For enquiries, please contact:
Ada Yeung
Corporate Communications
Hutchison Telecom
Tel: +852-2128-3106
Mobile: +852-6347-0619
Email: [email protected]
Nicky Lee
Investor Relations
Hutchison Telecom
Tel: +852-2128-3163
Email: [email protected]
SOURCE Hutchison Telecommunications International Limited
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