Chairman’s Message

HTAL Operations and 2022 Financial Results

Hutchison Telecommunications (Australia) Limited (“HTAL” or the “Company” (ASX: HTA), and together with its controlled entity, the “Group”) reports a statutory net loss of $398.4 million for the year ended 31 December 2022, compared with a net loss of $21.7 million for the comparative year ended 31 December 2021. The increase in net loss for the year 2022 is attributable to a $444.6 million non-cash impairment loss recognised to reduce the carrying amount of the Group’s 25.05%1interests in TPG Telecom Limited (“TPG”) to its estimated recoverable amount.

HTAL’s revenue represents interest income. For the year ended 31 December 2022, interest income increased to $0.2 million from $0.1 million for the comparative year ended 31 December 2021, driven by the increase in interest rates during the second half of 2022.  HTAL’s other operating expenses for the year ended 31 December 2022 decreased to $1.7 million from $1.9 million for the comparative year ended 31 December 2021.  This is due to decease in general expenses.

The Group has determined the recoverable amount of its investments in TPG at 31 December 2022 by reference to an indicative share price, including a significant influence premium given the parcel of shareholding and significant influence held by HTAL.  As a result, the Group has recognised a non-cash impairment loss of $444.6 million for the year 2022 for the amount by which the carrying amount exceeds the recoverable amount.

The Group’s share of net profit/(loss) of the equity accounted investments, after consolidation adjustments, increased to a profit of $47.7 million for the year 2022, from a loss of $19.9 million for the comparative year 2021.  This represented an increase of $67.6 million, primarily driven by an increase in TPG’s net profit resulting from one-off gain arising from the sale of its passive tower and rooftop assets. The net profit was partially offset by the higher net finance costs of Vodafone Hutchison (Australia) Holdings Limited (“VHAH”)2.

HTAL’s wholly owned subsidiary Hutchison 3G Australia Holdings Pty Limited (“H3GAH”), which holds the Group’s 11.14% direct interest in TPG, received dividends of $36.2 million from TPG during the year 2022. These dividends were used to fund a $33.0 million partial repayment of a borrowing facility granted by a subsidiary of the ultimate parent entity, CK Hutchison Holdings Limited.  Additionally, VHAH received and retained dividends of $90.5 million from TPG during the year 2022.

TPG 2022 financial results

TPG announced a total revenue of $5,415 million, EBITDA of $2,135 million, and a net profit attributable to shareholders of $513 million for the year ended 31 December 2022, compared to $5,292 million, $1,727 million and a profit of $113 million respectively for the year ended 31 December 2021. 

For further details and an explanation of TPG’s results for the year ended 31 December 2022, you may refer to TPG’s 2022 annual report which was lodged with the ASX on 27 February 2023. 

HTAL remains committed to its investment in TPG and will continue to support TPG in the future.

CanningFOKsig[1]

Fok Kin Ning, Canning
Chairman

1. HTAL’s 25.05% ownership interest in TPG Telecom Limited (“TPG”) comprises 11.14% interest directly held by HTAL’s wholly owned subsidiary Hutchison 3G Australia Holdings Pty Limited (“H3GAH”) and an attributed 13.91% interest indirectly held by H3GAH through Vodafone Hutchison (Australia) Holdings Limited (“VHAH”), a company domiciled in the United Kingdom in which H3GAH has a 50% shareholding. VHAH has a direct 27.82% interest in TPG.

2. A company domiciled in the United Kingdom in which HTAL through H3GAH has a 50% shareholding and which H3GAH jointly controls with a subsidiary of Vodafone Group Plc. VHAH holds a direct 27.82% interest in TPG.