Earnings: Hutchison Australia Losses Mount

Hutchison Australia has reported a net loss of AU$759.4 million for 2006, reports the Herald Sun, up from a loss of AU$547.3 million for 2005. The blow-out was the result of Hutchison closing its 2G CDMA network and upgrading all its customers to 3G, which saw an impact of AU$307.9 million…if this is excluded, the net loss for the year was AU$95.8 million lower than 2005. The companies revenues rose 15.6 percent year-on-year to $1.06 billion.
Hutchison plans to launch the 3 Group’s X-Series handsets in the first half of 2007, after it was launched in the UK last year.
The main concern appears to be Hutchison’s level of debt, which rose $578 million last year to reach $3.6 billion by the end of 2006, according to the SMH. It generates interest charges of $22 million per month. As a result the company will announce a capital restructure within weeks.