Tags:3G

Hutchison Whampoa''s struggling 3G mobile networks unit achieved an elusive profitability target last year, as it for the first time recorded positive core earnings.

The Hong Kong conglomerate''s global 3G networks - the largest of which it has built in the UK and Italy - have been a drag on earnings and its share price for years, offset only by asset disposals at more profitable divisions.

Last year Hutchison''s net profit increased 53 per cent to HK$30.6bn (US$3.9bn), boosted by a HK$35.8bn gain from a subsidiary''s sale of India''s fourth largest mobile phone network to Vodafone of the UK.

"Barring any unfavourable regulatory or market developments, 3 Group will turn a new page in 2008," Li Ka-shing, Hutchison chairman, said.

Earnings before interest, tax, depreciation and amortisation at Hutchison''s perennially loss-making 3G unit, were HK$1.2bn in 2007, against a loss of HK$7.5bn a year earlier.

The company also predicted that its 3G unit would make an operating profit (earnings before interest and tax) in 2009.

Last year the unit booked an operating loss of HK$17.94bn, a 10 per cent improvement on 2006.

Hutchison''s global port network, the world''s largest, and Husky Energy, the Canadian oil company controlled by Mr Li, again delivered strong earnings growth.

Mr Li reiterated, however, that the company''s annu


Source:ft.com