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3 over 8 million customers worldwide
March 31, 2005
Hutchison Whampoa Limited (HWL) announced the Group's annual results for 2004, and disclosed a current updated subscriber figure on its global network, which includes Italy, the UK, Australia, Austria, Sweden, and Denmark; as well as Hong Kong and Israel, which are under Hutchison Telecommunications International Limited (HTIL).
The 3 Group's and HTIL's 3G customer base at 30 March 2005 totalled over eight million, with over 1,700,000 new customers added in the first quarter this year following a very successful holiday season, which saw sales of over 900,000 in November and 1,300,000 in December 2004.
HWL also announced that average revenues for 3 customers, (see Key Business Indicators table) remain substantially above market averages in all markets, driven both by customer quality and stronger than expected take-up of non-voice services such as content, multi-media messaging and video services. Measured on content services, for example, the 3 Group would be one of the largest wireless value added services operators in the world.
As a result, 3 Group revenues have increased rapidly, reaching HK$15,742 million for 2004, nearly five times the revenue contribution for the seven months of operations in 2003. As average customer numbers grow and with costs tightly managed, the 3 Group is progressing rapidly to achieving its stated target of being EBITDA breakeven after expensed CAC on a month-to-month basis in the latter part of this year.
Despite new competition as incumbents launch 3G services, unit CAC is expected to continue to decline in 2005. Unit CAC in the last half of 2004 averaged Euro 271 compared to the seven-month average of Euro 299 announced with HWL's interim results. The principal factor in the decline is rapidly dropping average handset prices, reflecting increases in both the number of suppliers offering quality product and the range of product specifications and price points offered.
| Current key business indicators for the 3 Group
and HTIL’s 3G businesses: |
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3G Customers at 30 March 2005 ('000)
|
12-month Average Revenue per User ("ARPU")
(1) in 2004
|
Mix of Postpaid / Prepaid Customers (ratio)
|
Estimated Network Service Coverage (2)
at 28 Feb 2005
|
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|
Local Currency / HK$
|
Non-voice ARPU %
|
|
3G
|
Voice
|
| Australia |
543
|
A$88.23/506.78
|
13%
|
85/15
|
68%(3)
|
92%
|
| Austria |
240
|
EUR62.18/610.85
|
12%
|
85/15
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68%(3)
|
92%
|
| Italy |
3560
|
EUR47.17/463.91
|
23%
|
10/90
|
74%
|
99%
|
| Sweden & Denmark |
414
|
SEK397.06/429.82
|
14%
|
84/16
|
84%
|
99%
|
| UK |
3021
|
£40.30/578.04
|
20%
|
45/55
|
82%
|
99%
|
| |
|
|
|
|
|
|
| 3Group Total / Average |
7778
|
€52.43/515.11
|
20%
|
36/64
|
|
|
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|
|
|
|
|
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| Hong Kong |
282
|
HK$240.00/240.00
|
23%
|
100/0
|
99%
|
99%
|
| Israel (4) |
20
|
|
|
|
|
|
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|
|
|
|
|
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| Total |
8080
|
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|
|
|
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Note 1: ARPU equals total revenue before promotional discounts
and excluding handset and connection revenues, divided by the average
active customers, where an active customer is one that has generated
revenue from either an outgoing or incoming call or 3G-service in
the preceding 3 months.
Note 2: % of population
Note 3: % of licence population
Note 4: 3G operations in Israel commenced in December 2004 and the
KBIs are not meaningful
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