764 per cent profit growth for Hutchison after Vodafone merger

Due to its recent merger with Vodafone and the subsequent sale of the 3 business, Hutchison Australia has recorded a massive $552 million profit for the six month period to 30 June 2009, a 764.4 per cent increase.

The report issued to the ASX states that Hutchison gained from the disposal of it 50 per cent interest in the 3 business of $587.3 million. Before the merger the business actually recorded a net loss of $35.3 million, which is a $42.3 million improvement.

In addition to this total revenue increased by 19.4 per cent to $912.5 million and EBITDA improved 12.8 per cent by $11.1 million to $97.8 million.

VHA now has a customer base of 6.311 million at 30 June 2009 and its mobile broadband subscribers saw an impressive 167.6 per cent growth to 926,000 from 346,000.

“VHA expects to show continued resilience in a challenging economy, and to sustain its position of positive revenue growth through continued subscriber growth and the increased penetration and greater usage of internet-capable smartphones,” said the company in a statement.

VHA also expects that the cost to acquire new customers will increase in the second half of 2009 due to the aggressive competition and subsidies relating to the iPhone 3G S launch.

VHA expects positive cash flow for its first full year, excluding one-off costs associated with the merger.

“During the second half of the year VHA will be focussed on merging the business, which will include rationalising the organisation and integrating operations as we begin to realise synergies from the merger,” said VHA.

“We will be insourcing the management and retail operations of Vodafone branded stores and expect this to drive longer term productivity improvements and cost benefits.”

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