Hutchison Telecommunications Aus : Half Year Accounts

Hutchison Telecommunications (Australia) Limited

ABN 15 003 677 227

Level 1, 177 Pacific Highway North Sydney, NSW 2060 Tel: [phone] Fax: [phone] www.hutchison.com.au

ASX Market Announcements

Australian Securities Exchange

Date: 30 July 2019

Subject: Half Year Results

Please find attached the Company's results for the half year to 30 June 2019 in the form of Appendix 4D.

Yours faithfully

Naomi Dolmatoff

Company Secretary

Hutchison Telecommunications (Australia) Limited

ASX HALF-YEAR INFORMATION

30 June 2019

Hutchison Telecommunications (Australia) Limited
ABN 15 003 677 227
ASX Half-year Information
30 June 2019
Contents
Results for announcement to the market ..........................................................................................	3
Half-year Report - 30 June 2019 ......................................................................................................	4
Auditor's Independence Declaration ...............................................................................................	10
Consolidated statement of profit or loss and other comprehensive income .....................................	11
Consolidated statement of financial position ...................................................................................	12
Consolidated statement of changes in equity..................................................................................	13
Consolidated statement of cash flows.............................................................................................	14
Notes to the consolidated financial statements ...............................................................................	15
Directors' Declaration......................................................................................................................	23
Supplementary Appendix 4D information ........................................................................................	24
Compliance Statement....................................................................................................................	27
Independent auditor's review report to the members ......................................................................	28

Lodged with the ASX under Listing Rule 4.2A.

This preliminary financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2018 and any public announcements made by Hutchison Telecommunications (Australia) Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 (Cth).

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Hutchison Telecommunications (Australia) Limited

Half-year ended 30 June 2019

Results for announcement to the market

Hutchison Telecommunications (Australia) Limited ("HTAL") reports a statutory net loss of $157.1 million for the half-year ended 30 June 2019, representing a $146.8 million increase on the $10.3 million net loss in the previous corresponding period ending 30 June 2018. HTAL's share of Vodafone Hutchison Australia Pty Limited's ("VHA") net loss included in HTAL's results for the period was $159.5 million1 for the half-year ended 30 June 2019 compared with a net loss of $14.9 million in the corresponding period last year.

HTAL's revenue from ordinary activities represents interest income received on loans to VHA. HTAL's revenue from ordinary activities for the half-year ended 30 June 2019 decreased from $5.2 million in the corresponding period last year to $3.2 million mainly due to the decrease in shareholder loan balances provided to VHA which contributed lower interest income for half-year ended 30 June 2019.

			Jun 19		Jun 18		Movement		Movement
			$'000		$'000		$'000	%
	Revenue from ordinary				5,190			(2,002)			(39%)
	activities		3,188
	(Appendix 4D item 2.1)
	Loss from ordinary activities
	after tax attributable to	(157,086)	(10,282)		(146,804)		1,428%
	members
	(Appendix 4D item 2.2)
	Net loss for the period
	attributable to members		(157,086)		(10,282)			(146,804)			1,428%

(Appendix 4D item 2.3)

Dividends / distributions	Amount per security	Franked amount
(Appendix 4D item 2.4)			per security
Final dividend (prior year)		Nil	Nil
Interim dividend		Nil	Nil
Record date for determining entitlements to the dividend	n/a	n/a
(Appendix 4D item 2.5)

Additional Appendix 4D disclosure requirements is located in the Supplementary Appendix 4D information, Directors' Report and notes to the financial statements set out in the following half-year Report for the six month period ended 30 June 2019.

1 AASB 16 became effective for the Group on 1 January 2019. AASB 16 establishes principles for the recognition and measurement of

leasing arrangements. The net losses for the half-year ended 30 June 2019 include amortisation of the right-of-use assets and interest expense on lease liabilities relating to adopted AASB 16 leases, which were accounted for as operating expenses in the comparative period. The net losses for the half-year ended 30 June 2019 pre AASB 16 were $148.7 million.

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Hutchison Telecommunications (Australia) Limited

ABN 15 003 677 227

Half-year Report - 30 June 2019

Directors' Report

The Directors present their report on the Consolidated Entity (the "Consolidated Entity") consisting of Hutchison Telecommunications (Australia) Limited (the "Company" or "HTAL") and the entities it controlled at the end of, or during, the half-year ended 30 June 2019.

Directors

The following persons were Directors of HTAL during the whole of the half-year ended 30 June 2019 and up to the date of this report:

FOK Kin Ning, Canning

Barry ROBERTS-THOMSON

Justin Herbert GARDENER

LAI Kai Ming, Dominic

John Michael SCANLON

Frank John SIXT

Ronald Joseph SPITHILL

WOO Chiu Man, Cliff

Review of HTAL's results

HTAL accounts for its investment in Vodafone Hutchison Australia Pty Limited ("VHA") using the equity method of accounting. Under this method, revenue from VHA's ordinary activities is not included in HTAL's consolidated revenues from ordinary activities.

HTAL reports a $157.1 million loss for the half-year ended 30 June 2019 (post-AASB 16 adoption), and $146.3 million loss (pre-AASB 16 adoption). This is compared with a loss of $10.3 million in the corresponding period last year (pre-AASB 16 adoption). The difference relating to AASB 16 adoption is detailed within the VHA financial and operating metrics on page 8. The VHA results (including revenue and operating costs) are included in the "share of net losses of a joint venture accounted for using the equity method" in HTAL's consolidated statement of profit or loss and other comprehensive income.

During the period, HTAL revised its useful life estimate of existing network assets to a maximum of 18 years considering the government's network vendor security guidance and the introduction of AASB 16. This brings the HTAL estimates in line with those adopted by VHA. This is further detailed in note 2(b) of this report.

HTAL's revenue from ordinary activities represents interest income received on loans made to VHA. HTAL's revenue from ordinary activities for the half-year ended 30 June 2019 decreased from $5.2 million in the corresponding period last year to $3.2 million due to the decrease in shareholder loan balances provided to VHA.

No dividend was declared or paid by HTAL during the half-year ended 30 June 2019 (2018: nil).

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