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27th August - Hutchison Telecommunications (Australia) Limited
announced its results for the half year ended 30 June 2007,
recording the industrys highest net mobile customer
additions in the first six months of 2007.
3s customer base increased by 160,000 active net additions,
taking the total base to 1.4 million
customers an increase of 35% from the same period last
year. 93% of those net additions
were post paid services, bringing 3s post paid customer
base to 1.25 million in June - 89% of
the total.
3 continues to grow very strongly, attracting new customers
and building our customer base as
we also focus on retaining and improving our services for
existing customers. We continue to
lead industry innovation and through this deliver good value
non-voice services that people
really enjoy, said Nigel Dews, Chief Executive Officer,
Hutchison Telecoms.
3s service revenue increased by 50% to $541.4 million
when compared with the first half of
2006, driven by the growth of 3s customer base and usage
of non-voice 3G services. 3s non-
voice revenue increased 74.7% to $138.7 million.
Broadband and internet usage also continued to increase.
A full suite of mobile broadband
products was introduced during the half, including 3s
new Mobile Broadband USB modem and
the X-Series which enables customers to access internet services
like Skype, Google and
Instant Messenger Services on their mobile at market-leading
value. At the end of June, 82,000
subscribers had an X-Series plan, a Mobile Broadband USB modem
or card, or were using their
mobile phone as a modem. In addition there were more than
112,000 subscriptions to individual
X-Series services.
Other content from 3 continued to attract higher usage, with
customers experiencing more than
57 million content events, including more than 2.7 million
music events. Every month, an
average of over 1 million customers accessed the Planet 3
portal, and an average of 635,000
generated at least one billed content event each month. Mobile
TV also continued to be a
popular service, with four new channels added - Nick Junior,
Nickelodeon, Animax and Fox
Sports News.
Average monthly margin for 3 increased to $69.0 million from
$44.9 million between the first half
of 2006 and the first half of 2007. Monthly margin per user
was $52 and total monthly Average
Revenue Per User (ARPU) was $69 despite decreasing mobile
interconnect rates. More than
10% of 3s ARPU is from 3G services and 25% is from total
non-voice ARPU.
Twelve months after reporting the first positive EBITDA result
for the Company since launching
3, Hutchison improved EBITDA by $28.4 million in the first
half of 2007 to $31.4 million, and
improved its NPAT loss by 62.4% to $197.3 million.
Last month the Company announced an agreement with Telecom
New Zealand which, subject
to regulatory and shareholder approval, will see Telecom transfer
its 19.94% investment in 3
operator and Hutchison subsidiary H3GA, to a 10% stake in
Hutchison Telecoms, and take an
option to increase this investment by a further 9.94% at a
strike price of $250 million to $300
million, depending on when the option is exercised. As part
of the agreement Telecom New
Zealand will assign its 850MHz spectrum licences including
Brisbane, Adelaide and Perth to
Hutchison, complementing the Companys existing 850MHz
spectrum in Sydney and Melbourne,
giving 3 a national 850MHz spectrum footprint.
3 is performing strongly and we remain focused on growing
3s leadership position through
continued innovation, service and pricing. Our commitment
to exit this year with positive
operating cash flow remains firm, said Mr Dews.
In addition to delivering a great new range of leading handsets
from Nokia, Sony Ericsson, HTC
and LG, new services like X-Series, and competitive Mobile
Broadband and voice pricing, 3 will
also provide service levels never before experienced in Australia
through a network of new,
dedicated 3 Service centres. Located in Sydney,
Melbourne, Brisbane, Perth and Adelaide, 3
Service will provide customers with unique levels of while
you wait handset repair and other
services, with industry leading repair turnaround times.
Financial and operating highlights include:
Customer base increased by 160,000 active net additions in
first half 1.4 million active 3 customers, an increase of
35% from the first half 2006 93% of the net adds were post
paid, and at the end of June 89% of the base was post paid
50% increase in 3 service revenue at $541.4 million 3 non-voice
revenue at $138.7 million, an increase of 74.7% on the first
half of 2006 Average monthly margin for 3 increased to $69.0
million in first half 2007 from $44.9 million
in first half of 2006 $31.4 million positive EBITDA, an increase
of $28.4 million from first half 2006 62% improvement in NPAT
loss at $197.3 million Total ARPU for 3 was $69 Average monthly
margin per customer was $52
Non-voice service usage highlights include: More than 57
million content events were experienced during the first half
Over 1 million customers on average accessed Planet 3 each
month 82,000 subscriptions to Broadband services (inc X-Series,
Mobile Broadband card & USB
and handset as a modem) More than 112,000 subscriptions to
individual X-Series services An average of 635,000 customers
generated at least one billed content event each month
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