(Associated Press via NewsEdge) Tycoon Li Ka-shing's conglomerate Hutchison Whampoa reported a 63% drop in first-half earnings, but still beat expectations thanks to shrinking telecom losses and better income from its energy and port businesses.
Net income for the six months ended June 30 was HK$10.69 billion ($1.37 billion) compared with HK$28.76 billion ($) in the same period last year, the company said in a statement to the Hong Kong stock exchange.
Revenue climbed 24% to HK$176.2 billion ($22.6 billion).
Many analysts had expected the company, a sprawling conglomerate with retail, property, energy, infrastructure and telecom operations in 57 countries, _ to post half-year earnings below HK$10 billion ($1.2 billion).
Li, Hutchison's chairman, argued the company could fare well even in tough economic times because it operated in so many locations.
'If this country isn't doing well, another is doing better. So we're very lucky we can do quite well,' said Li.
The half-year slide was largely due to the absence of a major asset sale. In the same period last year, the company booked a disposable gain of HK$35.82 billion ($4.6 billion) after its telecom unit, Hutchison Telecommunications International, sold off Indian mobile phone assets.
The company, though, was helped by improving performance at its 3G mobile business, known as the 3 Group. The business trimmed its operating losses by 72% to HK$3.18 billion, on 14% higher revenues, leading the company to predict 3G would be profitable next near.
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