Press Releases

Press Release

Highlights

• Consolidated turnover grew 12% to HK$6,730 million.
• Turnover from mobile business increased 15% to HK$5,241 million.
• Turnover from fixed-line business rose 4% to HK$1,725 million.
• EBITDA increased 16% to HK$1,446 million.
• Profit attributable to shareholders of the Company grew 15% to HK$568 million.
• Earnings per share was 11.79 HK cents, representing a 15% increase.
• Interim dividend per share is 6.05 HK cents, grew 17%.

Hong Kong, 1 August 2012 - Hutchison Telecommunications Hong Kong Holdings Limited (the "Company" or the "Group"; Stock Code: 215) today announced its interim results for the six months ended 30 June 2012.

The Group continued to deliver strong results for the period under review. Consolidated turnover of the Group rose 12% from HK$6,018 million in the first half of 2011 to HK$6,730 million for the same period in 2012, mainly driven by ongoing smartphone trend and ever-increasing data usage. Service revenue grew from HK$4,144 million for the first half of 2011 to HK$4,221 million for the same period in 2012. Persistent demand for smart devices continued to boost hardware revenue, which increased by 34% from HK$1,874 million for the first six months of 2011 to HK$2,509 million for the first half of 2012.

EBITDA was up 16%, from HK$1,243 million for the first half of 2011 to HK$1,446 million for the same period in 2012. Operating profit grew 17%, from HK$682 million for the first half of 2011 to HK$801 million for the same period in 2012. Profit for the first six months of 2012 amounted to HK$704 million, reflecting a 17% increase from HK$600 million for the same period last year. Profit attributable to shareholders of the Company grew 15%, from HK$494 million for the first six months of 2011 to HK$568 million for the same period in 2012. Earnings per share for the first half of 2012 was 11.79 HK cents, a 15% increase compared to 10.25 HK cents for the same period in 2011.

The board of directors (the "Board") declares payment of an interim dividend for the first half of 2012 of 6.05 HK cents (30 June 2011: 5.16 HK cents) per share, or HK$292 million (30 June 2011: HK$249 million) in total. The Board envisages a full-year dividend amounting to 75% of annual profit attributable to shareholders of the Company.

Mr Peter Wong, Chief Executive Officer of the Group, said: "We continued to deliver strong growth in the first half of 2012. Our mobile operation, 3, launched 4G service, enabling customers to make the most of high-speed technology. Our fixed-line operation, HGC, also implemented a number of initiatives. Our international carrier business launched a world-class interconnection platform. Our corporate and business market segment joined forces with leading technology partners to offer diversified cloudbased business services. In addition, the customer base of our residential market business expands with the launch of a new home broadband package. With our strong presence in a variety of markets and customer-oriented services, we are well positioned to capitalise on opportunities that lie ahead."

Operations Review

Mobile Business - Hong Kong and Macau

• Turnover increased 15% to HK$5,241 million.
• Service revenue grew to HK$2,732 million, of which local and roaming data revenue accounted for 58%.
• Total customer base in Hong Kong and Macau rose to 3.64 million, of which 2.87 million were 3G and 4G customers.
• EBITDA and operating profit surged 28% and 26%, amounting to HK$992 million and HK$675 million respectively.
• Blended postpaid ARPU rose 8% to HK$256.

Mobile business of the Group continued to grow healthily for the period under review. Keen interest in smart devices, together with greater demand for data services, resulted in a 15% increase in mobile turnover from HK$4,553 million for the first six months of 2011 to HK$5,241 million for the same period in 2012. Service revenue grew from HK$2,679 million in the first half of 2011 to HK$2,732 million for the same period in 2012, of which local and roaming data revenue accounted for 58%.

As of 30 June 2012, the Group served 3.64 million customers in Hong Kong and Macau (30 June 2011: 3.35 million). The Group's 3G and 4G customer numbers were 2.87 million, together accounted for approximately 79% of the customer base. 58% (30 June 2011: 49%) of the Group's 3G and 4G postpaid customers in Hong Kong were using smart devices.

Internal upward migration from non-smartphone to smartphones, coupled with customer-oriented tariff packages, facilitated greater use of data and other mobile services. This, in turn, translated into steady ARPU growth. Blended postpaid ARPU for the first half of 2012 stood at HK$256, representing an increase of 8% from HK$238 for the same period in 2011. Meanwhile, 3G and 4G blended postpaid ARPU rose from HK$245 in the first half of 2011 to HK$253 for the same period in 2012.

Driven by growing turnover from hardware sales and data services, as well as cautious cost control, EBITDA increased by 28% from HK$778 million in the first half of 2011 to HK$992 million for the same period in 2012. Operating profit also reported an increase of 26% from HK$537 million for the first six months of 2011 to HK$675 million for the same period in 2012.

Capital expenditure amounted to HK$272 million for the first half of 2012, while capital expenditure to service revenue stood at 10%.

For more information, please visit http://doc.irasia.com/listco/hk/hthkh/interim/2012/intpress.pdf.