vested
CK Hutchison shares drop on biggest loss since 2015The group’s net income tumbled 41 percent from a year earlier to HK$11.2 billion ($1.4 billion) in the six months through June, it said Thursday, amid a strong dollar and higher operating costs.
Revenue fell to HK$223.9 billion from HK$229.6 billion a year earlier.
Announced an interim dividend of HK$0.756 per share, compared with HK$0.84 a year before.
China's growth is losing momentum amid a property market slump, weakening consumption and falling exports. Elsewhere, Europe’s outlook remains gloomy as inflation pressures persist.
The company’s ports business was hit by stagnant global demand for consumer goods, weak Chinese exports to major Western markets and elevated inventories in the US and Europe. That overstocking is likely to continue to hinder the recovery in cargo demand in the second half, but volumes are expected to increase in late 2023 as global demand rebounds, it said.
The telecom unit saw a 20 percent drop in earnings before interest, taxes, depreciation, and amortization, partly due to foreign currency revaluation of some monetary assets. But CK Hutchison also said it faces rising energy costs and higher capital requirements to expand existing mobile networks especially in Europe.
CK Hutchison has been reducing its exposure in the region’s telecommunications sector. In June, its Britain-based carrier Three UK agreed to merge with Vodafone Group Plc’s unit, in a deal that will create the biggest wireless company in the country if it gets approval from authorities. Vodafone will have the right to acquire the entire merged business after three years, if it reaches a value of at least £16.5 billion including debt.
The conglomerate also cut holdings in its Italian mobile and fixed network business, forming a partnership with Swedish private equity group EQT AB, which will see CK Hutchison hold 40 percent of a newly formed firm that will own and operate the business.
Retail was a rare bright spot in the earnings report, posting a 17 percent increase in Ebitda. That was driven by gains in Europe and Asia, particularly the robust recovery in demand for health and beauty products in mainland China at the start of the year, it said.
Source: Bloomberg
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It's all about "how much you made when you were right" & "how little you lost when you were wrong"