Hutchison Telecom profit drops nearly 80% to $31m in H1

This is much lower than the $146m recorded in the same period in 2020.

The Hutchison Telecommunications Hong Kong Holdings Limited recorded a profit drop of 79% to $31m in the first half (H1) of the year, linked to the “sluggish” economic recovery and continued travel restrictions.

This declined from $146m reported in the same period last year. In particular, the decrease was driven by a $58m reduction in net interest income as bank deposit rates dropped significantly.

The company also registered a $310m decrease in the net cash balance from the start of 2020, following the settlement of 5G investment and spectrum spending in H1 2021.

“The COVID-19 pandemic has continued to bring significant upheaval to the way of life and businesses,” Chairman Canning Fok Kin-Ning said in his statement.

“Sluggish economic recovery and persistent travel restrictions have led to unprecedented operational uncertainties throughout the first half of 2021.”

The company’s total revenue grew 29% to $2.56b in H1 2021 from $1.98b a year ago.

Of this, the local service revenue showed a 4% rise to $1.50b from $1.44b. Hardware revenue, meanwhile, rose by 194% to $935m.

The Board declared an interim dividend of 2.28 cents per share for the six months to June 2021. It also declared a one-off special interim dividend of 19.80 cents per share for the same period.

This brings the total dividends to 22.08 cents.