3g-g
24th June 2005, 11:12 PM
Hmm... Sell a load of stuff out in Hong Kong, make billions in cash, but then nip to the bank for a loan?
Interesting to read that Hutch wrote off nearly HK$10Bn in handset subsidy costs, I wish I had 10billion bucks to piss against the wall! But their customer base is still so small, 8.1 million subs worldwide, I think it'll be later than 2007 before the generate positive cash flow, especially if the other operators keep their own 3G pushes up.
Hutch 3G unit secures $10.7b loan in Sweden
Hi3G Access AB, Hutchison Whampoa's third-generation (3G) mobile telecoms unit in Sweden, has secured a 10.5 billion Swedish kroner (HK$10.68 billion) loan facility to fund its Scandinavian 3G operations and repay loans to its owners.
"The facility covers Hi3G's estimated loan financing needs for its operations in Sweden and Denmark,'' Swedish group Investor AB, which owns 40 percent of Hi3G, said in a statement. Hutchison Whampoa owns the remainder of the unit.
Hi3G had signed up more than 410,000 3G subscribers in Sweden and Denmark as of the end of March since launching the services in 2003. They make up part of the 8.1 million 3G subscribers for Hutchison, which runs 3G businesses in six other markets, including Britain, Italy and Australia.
The five-year loan facility, which is priced at 30 basis points above the Stockholm interbank offered rate, will be used to refinance existing loans provided to Hi3G by Hutchison and Investor. A dozen banks, including Citibank International, Goldman Sachs and BNP Paribas, joined the facility.
Hutchison's operating losses in its 3G businesses jumped to HK$37.5 billion last year, almost double 2003's HK$19.7 billion, after it wrote off HK$9.59 billion in handset subsidy costs to fall in line with new accounting policies it adopted last year.
Hutchison expects its 3G operations to generate positive cashflow next year and to start posting net profits in 2007.
Hutchison is also likely to book exceptional proceeds to make up for its 3G losses by floating its 3G unit in Italy later this year, to be followed by a share sale in its UK 3G arm next year. Analysts value Hutchison's Italian 3G unit at 7 billion to 10 billion euros (HK$66.4 billion to HK$94.4 billion).
As at the end of last year, Investor had provided Hi3G with over four billion Swedish kroner in loans, in addition to 1.6 billion Swedish kroner in capital, according to the Swedish group's filings to the Stockholm stock exchange. Investor will contribute up to 3.4 billion Swedish kroner in further capital to fund operations in Hi3G, the group said. Apart from providing 3G services in Sweden and Denmark, Hi3G was also awarded a 3G license in Norway in 2003.
Interesting to read that Hutch wrote off nearly HK$10Bn in handset subsidy costs, I wish I had 10billion bucks to piss against the wall! But their customer base is still so small, 8.1 million subs worldwide, I think it'll be later than 2007 before the generate positive cash flow, especially if the other operators keep their own 3G pushes up.
Hutch 3G unit secures $10.7b loan in Sweden
Hi3G Access AB, Hutchison Whampoa's third-generation (3G) mobile telecoms unit in Sweden, has secured a 10.5 billion Swedish kroner (HK$10.68 billion) loan facility to fund its Scandinavian 3G operations and repay loans to its owners.
"The facility covers Hi3G's estimated loan financing needs for its operations in Sweden and Denmark,'' Swedish group Investor AB, which owns 40 percent of Hi3G, said in a statement. Hutchison Whampoa owns the remainder of the unit.
Hi3G had signed up more than 410,000 3G subscribers in Sweden and Denmark as of the end of March since launching the services in 2003. They make up part of the 8.1 million 3G subscribers for Hutchison, which runs 3G businesses in six other markets, including Britain, Italy and Australia.
The five-year loan facility, which is priced at 30 basis points above the Stockholm interbank offered rate, will be used to refinance existing loans provided to Hi3G by Hutchison and Investor. A dozen banks, including Citibank International, Goldman Sachs and BNP Paribas, joined the facility.
Hutchison's operating losses in its 3G businesses jumped to HK$37.5 billion last year, almost double 2003's HK$19.7 billion, after it wrote off HK$9.59 billion in handset subsidy costs to fall in line with new accounting policies it adopted last year.
Hutchison expects its 3G operations to generate positive cashflow next year and to start posting net profits in 2007.
Hutchison is also likely to book exceptional proceeds to make up for its 3G losses by floating its 3G unit in Italy later this year, to be followed by a share sale in its UK 3G arm next year. Analysts value Hutchison's Italian 3G unit at 7 billion to 10 billion euros (HK$66.4 billion to HK$94.4 billion).
As at the end of last year, Investor had provided Hi3G with over four billion Swedish kroner in loans, in addition to 1.6 billion Swedish kroner in capital, according to the Swedish group's filings to the Stockholm stock exchange. Investor will contribute up to 3.4 billion Swedish kroner in further capital to fund operations in Hi3G, the group said. Apart from providing 3G services in Sweden and Denmark, Hi3G was also awarded a 3G license in Norway in 2003.