Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
VOLUNTARY ANNOUNCEMENT RESULTS OF WIND TRE S.P.A.Reference is made to the announcement dated 7 November 2016 of CK Hutchison Holdings Limited (the "Company" and, together with its subsidiaries, the "Group") in relation to the completion of the formation of a 50/50 joint venture, VIP-CKH Luxembourg S.à r.l. (the "Joint Venture"), to jointly own and operate the telecommunications businesses in Italy of 3 Italia S.p.A., a then indirect subsidiary of the Company, and WIND Acquisition Holdings Finance S.p.A., a then wholly-owned subsidiary of VimpelCom Ltd.
The board of Directors of the Company (the "Board") has noted that Wind Tre S.p.A., an indirect wholly-owned subsidiary of the Joint Venture, which owns and operates the Joint Venture's telecommunications businesses in Italy, has announced on its website its unaudited combined results for the year ended 31 December 2016. Based on the information currently available from Wind Tre S.p.A., the Board would like to advise that the results of the telecommunications businesses in Italy included in the Group's consolidated results for the year ended 31 December 2016 to be announced by the Company on 22 March 2017 will differ from the unaudited combined results announced by Wind Tre S.p.A. These differences are noted in the reconciliation below:
Wind Tre's | Comprised of: | |
Jan to Oct | Nov to Dec | |
Combined | ||
results(1) | ||
6,491 | 5,298 | 1,193 |
2,184 | 1,767 | 417 |
2,124 | 1,767 | 357 |
560 | 418 | 142 |
(1,179) | 418 | (1,597) |
Comprised of: | |||
Group's | 3 Italia | 50% share of Wind Tre Nov to Dec 596 208 178 71 (799) | Consolidation |
share of | 100% basis | ||
Italy's results | Jan to Oct | adjustments (2) | |
1,553 | 1,553 | ||
489 | (107) | ||
279 | 279 | ||
209 | 1 | ||
279 | 279 | ||
209 | 31 | ||
154 | 154 | ||
169 | 98 | ||
154 | 154 | ||
169 | 968 |
Total Revenue
Subsidiary
Share of joint venture
EBITDA before integration costs
Subsidiary
Share of joint venture
EBITDA
Subsidiary
Share of joint venture
EBIT before impairment & write off and others
Subsidiary
Share of joint venture
EBIT (LBIT)
Subsidiary
Share of joint venture
The unaudited combined results announced by Wind Tre S.p.A. assumed the formation of the Joint Venture was effective as at 1 January 2016 and reflected full year results of the telecommunications businesses in Italy of each of 3 Italia S.p.A. and WIND Acquisition Holdings Finance S.p.A.
For revenue, the consolidation adjustments mainly represent reclassification of the handset and other revenue arising from customer acquisition and retention activities to conform with the Group's definition of revenue. Upon formation of the Joint Venture, the accounting standards require the Group to account for the Joint Venture's assets and liabilities at fair value. Accordingly, provisions for commitments, onerous contracts and guarantees had been made and a lower valuation had been assigned by the Group to the assets of the telecommunications businesses in Italy as a result of the formation of the Joint Venture. These provisions and lower values are required to be reflected in the Group's consolidated financial statements as a result of the accounting standards applicable to the formation of the Joint Venture. Consequently, adjustments to EBITDA and EBIT of the telecommunications businesses in Italy have been made when the Group's 50% interest in the Joint Venture is incorporated into the Group's consolidated results.
The Board noted that the unaudited combined results announced by Wind Tre S.p.A. assumed the formation of the Joint Venture was effective as at 1 January 2016 and reflected the full year results of the telecommunications businesses in Italy of each of 3 Italia S.p.A. and WIND Acquisition Holdings Finance S.p.A.
The Board further advises that the results of the telecommunications businesses in Italy included in the Group's consolidated income statement for the year ended 31 December 2016 represented approximately ten months results of 3 Italia S.p.A. and its subsidiaries prior to the formation of the Joint Venture that was completed on 5 November 2016 and the Group's 50% equity share of approximately two months results of the Joint Venture post completion. In addition, upon formation of the Joint Venture, the Hong Kong Financial Reporting Standards require the Group to account for the Joint Venture's assets and liabilities at fair value. Accordingly, adjustments to the results of the telecommunications businesses in Italy have been made when the Group's 50% interest in the Joint Venture is incorporated into the Group's consolidated results.
Shareholders and potential investors of the Company are cautioned not to unduly rely on the unaudited combined results announced by Wind Tre S.p.A, as they do not represent the results of the telecommunications businesses in Italy included in the Group's consolidated results for the year ended 31 December 2016. Instead, shareholders and potential investors of the Company should refer to the Group's share of Italy's results as set out in the above table for the results of the telecommunications businesses in Italy included in the Group's consolidated results for the year ended 31 December 2016. Shareholders and potential investors are reminded that the above financial information of the Group are unaudited results as of the date of this announcement and are included for reference only. Audited results will be available on the announcement date of the Company on 22 March 2017. Shareholders and potential investors should exercise caution when dealing in the securities of the Company.By Order of the Board
Edith ShihExecutive Director and Company Secretary
Hong Kong, 23 February 2017
As at the date of this announcement, the Directors of the Company are:
Executive Directors: Mr LI Ka-shing (Chairman) Mr LI Tzar Kuoi, Victor (Group Co-Managing Director and Deputy Chairman) Mr FOK Kin Ning, Canning (Group Co-Managing Director) Mr Frank John SIXT (Group Finance Director and Deputy Managing Director) Mr IP Tak Chuen, Edmond (Deputy Managing Director) Mr KAM Hing Lam (Deputy Managing Director) Mr LAI Kai Ming, Dominic (Deputy Managing Director) Ms Edith SHIH | Non-executive Directors: Mr CHOW Kun Chee, Roland Mrs CHOW WOO Mo Fong, Susan Mr LEE Yeh Kwong, Charles Mr LEUNG Siu Hon Mr George Colin MAGNUS Independent Non-executive Directors: Mr KWOK Tun-li, Stanley Mr CHENG Hoi Chuen, Vincent The Hon Sir Michael David KADOORIE Ms LEE Wai Mun, Rose Mr William Elkin MOCATTA (Alternate to The Hon Sir Michael David Kadoorie) Mr William SHURNIAK Mr WONG Chung Hin Dr WONG Yick-ming, Rosanna |
CK Hutchison Holdings Limited published this content on 23 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 February 2017 12:32:04 UTC.
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