Sphere No.48 (Jan 2020)

>> Sphere #48 2020 15 Fiscally, the improved credit rating status of the combined entity enables it to borrow money at lower rates, thereby permitting more flexibility in fundraising. This will have a direct impact on current leverage, especially debt associated with the acquisition of Wind Tre. For the next several years, over € 100 million in annual savings will arise from reduced interest charges for Wind Tre alone. The importance of CK Hutchison Group Telecom to CKHH cannot be underestimated, and neither canWind Tre to CK Hutchison Group Telecom. Wind Tre contributed 54% to CK Hutchison Group Telecom’s EBITDA earnings from January to the end of June in 2019. The evidence for this fiscal upgrade has been confirmed by the world’s major rating agencies that pre-approved credit ratings for the new entity. S&P has awarded it an A- rating, Moody’s a Baa1 rating and Fitch a BBB+ rating – all excellent by global financial standards. With improved fiscal strength and reduced costs in servicing interest, the company is inherently more efficient. It also becomes easier to consolidate buying, providing leverage in negotiations with global suppliers. It can focus on technology roll-out and bandwidth acquisition that makes it more competitive and responsive to customers. CK Hutchison Group Telecom can also boost cross-border opportunities by working as a group as opposed to smaller national entities. Another vital part of the restructuring is the creation of another new entity under CK Hutchison Group Telecom – CK Hutchison Networks Holdings Limited (CK Hutchison Networks). Reach for the sky The 3 mobile phone companies focus on new services and putting technology in the hands of mobile device users. But another vital part of the telecommunications business is tower assets. These towers bring the data from the world of cables into the ether so it can reach your phone – and soon, much more. Telecom towers carry the telephone signals and data that bring you mum’s phone call, your streaming Spotify, Google searches and Instagram posts. But that transmission capability can be leased out to other mobile providers operating drones, sending and receiving vehicle data or taking information from sensors and monitors. The list of uses is as endless as IoT, which delivers a wireless world with all devices connecting through tower assets. CK Hutchison CK Hutchison Group Telecom CK Hutchison Networks HTHKH Group Europe Mobile Telecom Infrastructure Mobile/ Fixed Line Telecom Infrastructure 100% 66.09% 100%/60% 100% CK HUTCHISON’s Telecom Business reorganisation Provision of Tower Company Services to 3 Group Europe Cross-border cooperation, fiscal strength and operational efficiency are all being elevated.