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3 Group grows FY EBIT 54%, reaches positive opg cash flow
2014-02-28 09:16:00| Telecompaper Headlines
(Telecompaper) Hutchison Whampoa's 3 Group reported EBITDA up 38 percent in 2013 to HKD 12.67 billion. Its EBITDA margin jumped to 27 percent from 21 in 2012. Revenues rose 6 percent to HKD 61.98 billion, with a 4 percent increase in local currencies and 9 percent growth in service revenue. Operating profit (EBIT) was up 54 percent to EUR 4.86 billion. The mobile operator also reached the milestone of positive operating cash flow, measured as EBITDA minus capex, at HKD 2.50 billion versus a negative HKD 2.13 billion in 2012. This followed a small drop in capex last year, to HKD 10.18 billion. The company's growth was helped by its takeover of Orange Austria, and the company expects to complete its takeover of O2 Ireland in Q2 this year, pending regulatory approval. With the stabilisation of termination rates in Europe and the company's move to a no-subsidy handset model, 3 said it's set for further growth in the coming year, supported by demand for smartphones and data services. 3 finished 2013 with 22.14 million active customers in Europe, up from 18.54 million a year earlier, led by a doubling in the Austrian base and double-digit growth in every other market apart from the UK. The share of postpaid increased to 59 percent from 56 at the end of 2012. ARPU was still down 12 percent to EUR 21.13 on a 12-month trailing basis. Total data traffic rose to over 384 petabytes from 247 in 2012, and average use per customer increased to 18.2 GB in 2013 from 14.0 in 2012.
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Category:Telecommunications