3 Group reported revenues for the first half of 2018 of HKD 36.12 billion, up 9 percent from a year earlier. In local currencies, revenues fell 2 percent, including a 4 percent fall in service revenue. EBITDA rose 14 percent to HKD 12.8 billion, and was up 3 percent in local currencies, while EBIT of HKD 7.5 billion was little changed, as network investments led to higher depreciation and amortisation.
The European mobile operator maintained a healthy EBITDA margin of 42 percent, up from 40 percent a year ago, and said all its country operations reported positive operating cash flow (EBITDA - capex) for the period. Total capex fell slightly to HKD 4.2 billion from HKD 4.3 billion a year ago, and operating cash flow increased 24 percent to HKD 8.6 billion.
The active customer base contracted 1 percent year-on-year to 44.6 million, mainly due to the competitive pressure in Italy, while the UK, Ireland and Denmark added more customers in the past year. The share of postpaid in the total base rose to 40 percent from 38 percent in H1 2017. 3 also reported a strong increase in data usage, to an average 33.1 GB per customer over the six months from 24.5 GB a year ago.
3's parent CK Hutchison said it expects to complete the buy-out of partner Veon in Italy in the third quarter, pending regulatory approval.
