Hutchison reports 3 Group progress on track

Hutchison Whampoa, the Hong Kong conglomerate controlled by tycoon Li Ka-shing, yesterday reported continued improvement at its 3G telecommunications unit, despite nagging problems at the company's Italian arm.

Losses before interest and tax at Hutchison's 3 Group narrowed 39 per cent in 2008, to HK$10.857bn ($1.4bn).

“The most difficult time has passed,” said Canning Fok, Hutchison managing director. The company added that its 3G networks are on track to achieve positive earnings before interest and tax this year.

Losses were reduced in four of the unit's five markets last year, with Italy being the exception. Revenues at 3 Italia fell 15 per cent in 2008, contributing to a 16 per cent increase in LBIT.

“It's quite tiresome but the explanation [for Italy] is still the effect of the Bersani decree,” Mr Fok said, referring to a regulatory ruling that reduced operators' fee income. “Italy did not have a good year in 2008 so we have to pay attention.”