Press Releases

Press Release

Hong Kong, 2 August 2010 - Hutchison Telecommunications Hong Kong Holdings Limited ("HTHKH"; "the Group"; Stock Code: 215) today announced its interim results for the six months ended 30 June 2010.

Amid Asia's economic recovery, the mobile and fixed-line businesses of the Group continued to achieve steady and healthy growth during the first half of 2010. The Group reported a consolidated turnover of HK$4,283 million, increased by 5% when compared to HK$4,097 million for the same period in 2009. Turnover of mobile business increased by 7% to HK$2,831 million while turnover of fixed-line business maintained at HK$1,630 million, similar to the same period in 2009 at HK$1,623 million.

Total operating expenses were held at HK$3,739 million during the first half of 2010. As a result, operating profit increased by 36% to HK$544 million. First half profit attributable to shareholders of the Group increased by 41% to HK$361 million, compared to HK$256 million for 2009. Earnings per share increased by 41% to 7.50 HK cents for the six months ended 30 June 2010, compared to 5.32 HK cents for the same period in 2009.

The Board of Directors recommended an interim dividend of 3.32 HK cents per share (30 June 2009: 1.12 HK cents), or HK$160 million in total (30 June 2009: HK$54 million).

Mr Peter Wong, Chief Executive Officer of HTHKH, said, "I am very pleased to present the interim results for the first six months of 2010. Amidst economic recovery in most countries across Asia, we achieved steady and healthy growth in our well-established mobile and fixed-line businesses. Leveraging our advanced, integrated mobile and fixed-line infrastructure built in recent years, our 3 brand continues to be the leading service provider in Hong Kong with a sharp focus on developing fixed-mobile convergence. Our HGC brand is also well placed to capture the fast-growing bandwidth demand opportunity as a leading optical-fibre carrier of backhaul services. We are growing to command a prominent position in the international telecommunications market by consistently extending our global reach. Looking ahead, we will continue to pursue service excellence and market leadership, and believe our strong financial performance will provide a solid foundation from which we will maximise value for shareholders and customers as a whole."

Operations Review
Mobile Business - Hong Kong and Macau

• Turnover increased by 7% to HK$2,831 million
• Operating profit reached HK$361 million
• Total mobile customer base in Hong Kong and Macau grew to 3.1 million

Although voice revenue was affected by sustained competitive price pressure, the mobile business of the Group reported approximately 40% robust growth in data service revenue during the first half of 2010. Mainly driven by the increasing data service, turnover of mobile business increased by 7% to HK$2,831 million for the first six months of 2010 when compared to HK$2,647 million for the same period in 2009. Mobile customer base grew to a total of 3.1 million.

Excluding depreciation and amortisation, operating costs increased by 6% to HK$2,255 million, in line with the turnover growth. Operating profit reached HK$361 million during the period under review.

Due to the recovery of Hong Kong economy and an upturn in spending and travelling trends, the mobile postpaid ARPU of the Group increased to HK$214 compared to HK$202 for the same period in 2009.

Depreciation and amortisation decreased by 36% to HK$215 million, mainly due to a change in estimated useful lives of 2G network equipment in Hong Kong and more fully depreciated assets.

Fixed-line Business - Hong Kong

• Turnover maintained at HK$1,630 million
• Operating profit reported at HK$226 million

With the continuing data growth in all markets being offset by lower interconnection revenue following the governmental deregulation of the fixed and mobile interconnection arrangement in April 2009 and one time revenue items, the turnover from the fixed-line business of the Group maintained at HK$1,630 million in the first half of 2010, similar to the same period in 2009 at HK$1,623 million.

Excluding depreciation and amortisation, the operating costs increased by 3% to HK$1,087 million. Operating profit reported at HK$226 million. Depreciation and amortisation maintained at HK$317 million, the same level as 2009.

Outlook
For mobile business, thanks to the advanced, integrated mobile and fixed-line infrastructure built in recent years, the 3 brand continues to rise in stature as the leading service provider in Hong Kong. The Group will also continue to reinforce 3 brand's leading market position as an ideal option for those seeking to enhance everyday lifestyle with iPhones, other smartphones and broadband data devices.

For fixed-line business, the Group will focus on adopting, in a cost efficient manner, the latest advances in technology to meet the increasing demand for bandwidth and trustworthy data services. The Group will also strive to meet the diverse needs of international and corporate customers by providing capacity and innovative solutions while seeking to command a prominent position in the international telecommunications market by co-operating with overseas operators and extending its global reach to serve carriers, service providers and enterprises around the world.

Leveraging its largest 3G network in Hong Kong, unrivalled fibre-to-the-building network infrastructure, and newly awarded 4G license, the Group is well positioned to develop fixed-mobile convergence (FMC) by optimising synergies between its mobile and fixed-line businesses. To underscore the convergence and one-stop services, the Group consolidated its fixed-line consumer business, mobile and Wi-Fi services as 3ree Broadband under the 3 family in July 2010. It is the firm commitment of the Group to delivering higher-value, one-stop and compelling integrated services by depolying the latest technologies, thereby enabling customers to reap the full benefits of a new era of data connectivity.

About Hutchison Telecommunications Hong Kong Holdings Limited
Hutchison Telecommunications Hong Kong Holdings Limited ("HTHKH", Stock Code: 215) is a leading integrated telecommunications service operator in Hong Kong. HTHKH provides advanced mobile and WiFi services, residential fixed broadband, residential telephone line and IDD services in Hong Kong under the "3ree Broadband" brand of the 3 family while delivering mobile services in Macau under the "3" brand. In addition, HTHKH provides sophisticated fixed-line telecommunications solutions to corporate and carrier customers in Hong Kong and around the world under the "HGC" brand. A group member of Hutchison Whampoa Limited (Stock Code: 13), HTHKH deploys the latest telecommunications technology to offer world-class telecommunications services and innovations, setting market trend and steering industry development.

For more information about HTHKH, please visit www.hthkh.com.

For 3 Hong Kong's services, please visit www.three.com.hk.

For 3 Macau's mobile services, please visit 3g.three.com.mo.

For HGC's fixed-line services, please visit www.hgc.com.hk.