Hutchison Telecoms Q3 in black on growth in India

HONG KONG, Nov 2 (Reuters) Hutchison Telecommunications International Ltd. posted third-quarter earnings of HK3 million (US.2 million) as its mobile subscriber base rose 76 percent, driven by growth in India.

The emerging markets mobile phone arm of conglomerate Hutchison Whampoa Ltd. had edged into the black in the first half of 2006 after a hefty loss in 2005. For the nine months, net profit totalled HK5 million, executives said without offering a comparison.

The company, which does not usually report quarterly numbers, posted a loss attributable to shareholders of HK8 million for the whole year of 2005.

''We have seen very strong profit growth in the third quarter, firstly, coming from our two businesses in India and Israel,'' Chief Financial Officer Tim Pennington told a teleconference on Thursday.

Hong Kong-based Hutchison Telecoms, which wants to position itself as a dominant mobile player in developing markets, has been an avid dealmaker. Its hopes to list its Indian business, however, have been delayed in part by changes in regulations and the operation's ownership structure.

The company, which has networks in Hong Kong, Thailand, Israel and elsewhere, said its mobile subscriber base had risen to 26.5 million at the end of September from 15.1 million a year earlier.

Subscribers in India had more than doubled to 20.4 million at the end of September.

But average revenues per user in its India market fell to 420 rupees (US.2) per month during the third quarter, a drop of 19 percent from the same period a year earlier.

Its third-generation customer base in Hong Kong has grown to around 690,000, it added.

Executives played down any negative impact from a dispute between India's Essar group and a unit of Hutchison Telecoms over the acquisition of a Mumbai mobile phone company, which awaits arbitration.

''I dont' think if will affect our overall business. It is just like a husband and wife quarrel, but it would have the son or daughter's interest in mind,'' Chief Executive Dennis Lui said.

Shares of Hutchison Telecoms ended up 1.7 percent at HK.3 on Thursday before the figures were released. The stock had gained 10.2 percent in the third quarter, outpacing a 7.8 percent gain in the benchmark Hang Seng Index.

REUTERS DKS DS1650