miffed
30th March 2005, 01:45 PM
(Although this is a global rather than a UK report - it is interesting to see more talk of Hutchinson considering Floating H3G )
3G losses hit Hutch
Tony Munroe in Hong Kong
MARCH 30, 2005
HONG Kong tycoon Li Ka-shing's flagship Hutchison Whampoa conglomerate is forecast to post lower second-half profits as 3G telecoms losses offset one-off gains and growth in its ports and retailing businesses.
Investors are less focused on the bottom line, however, than on progress at Hutchison's 3G operation, which faces competition in its key markets of Italy and the UK as established 2G carriers including giant Vodafone offer next-generation services.
Hutchison is spending $US22 billion - $25 billion ($29billion - $32 billion) on its commercially unproven 3G service and investors want to know how much it costs to sign up 3G users and how profitable those users are.
After 3G got off to a late and slow start in 2003, some doubters are being won over.
Goldman Sachs expects Hutchison to have attracted 8 million 3G users as of March 30, with average revenue per user sliding to 38 ($64) a month this quarter from 44 in November, as a rising share of users choose pre-paid plans.
It predicts Hutchison is spending 260 to attract each user in the current quarter, and expects the company will have signed up 13 million 3G users globally by the end of the year.
"The fundamental outlook remains positive for most of its key businesses and we see scope for upside surprises from its 3G operations over the next 6-12 months," Goldman wrote earlier this month.
Company watchers are also eager for any news of deals from a company famous for its asset-trading. Hutchison's pending $US685 million offer to take over France's Marionnaud would make it the world's biggest perfume retailer.
Hutchison is also considering floating its Italian and UK 3G businesses, while its Hutchison Telecommunications International Ltd. (HTIL) emerging markets phone arm plans a listing this year of its fast-growing mobile operation in India.
Speculation also persists that Hutchison could eventually sell its 35 per cent stake in Husky Energy, Canada's fifth-largest oil company, to help smooth 3G startup losses.
In early February, Moody's lifted its outlook on Hutchison's debt to 'stable' from 'negative', while maintaining its A3 rating, noting that "key execution risks and the risk of significant failure are diminishing" for its 3G business.
Reuters
3G losses hit Hutch
Tony Munroe in Hong Kong
MARCH 30, 2005
HONG Kong tycoon Li Ka-shing's flagship Hutchison Whampoa conglomerate is forecast to post lower second-half profits as 3G telecoms losses offset one-off gains and growth in its ports and retailing businesses.
Investors are less focused on the bottom line, however, than on progress at Hutchison's 3G operation, which faces competition in its key markets of Italy and the UK as established 2G carriers including giant Vodafone offer next-generation services.
Hutchison is spending $US22 billion - $25 billion ($29billion - $32 billion) on its commercially unproven 3G service and investors want to know how much it costs to sign up 3G users and how profitable those users are.
After 3G got off to a late and slow start in 2003, some doubters are being won over.
Goldman Sachs expects Hutchison to have attracted 8 million 3G users as of March 30, with average revenue per user sliding to 38 ($64) a month this quarter from 44 in November, as a rising share of users choose pre-paid plans.
It predicts Hutchison is spending 260 to attract each user in the current quarter, and expects the company will have signed up 13 million 3G users globally by the end of the year.
"The fundamental outlook remains positive for most of its key businesses and we see scope for upside surprises from its 3G operations over the next 6-12 months," Goldman wrote earlier this month.
Company watchers are also eager for any news of deals from a company famous for its asset-trading. Hutchison's pending $US685 million offer to take over France's Marionnaud would make it the world's biggest perfume retailer.
Hutchison is also considering floating its Italian and UK 3G businesses, while its Hutchison Telecommunications International Ltd. (HTIL) emerging markets phone arm plans a listing this year of its fast-growing mobile operation in India.
Speculation also persists that Hutchison could eventually sell its 35 per cent stake in Husky Energy, Canada's fifth-largest oil company, to help smooth 3G startup losses.
In early February, Moody's lifted its outlook on Hutchison's debt to 'stable' from 'negative', while maintaining its A3 rating, noting that "key execution risks and the risk of significant failure are diminishing" for its 3G business.
Reuters