LONDON: CK Hutchison'S Three UK reported an operating loss of £30 million ($39 million) in the first half of the year and continued negative cash flow, which it said showed it needed to merge with a larger competitor. Vodafone to invest in a better combined network.
BritainThe country's competition regulator is investigating a proposed merger between the country's third- and fourth-largest mobile networks after raising concerns that the $19 billion deal announced last year could result in higher prices for consumers. It is due to report in December.
Three's CFO Darren Purkis said the first six months of the year saw growth in its Smarty sub-brand and wireless broadband for the home, offsetting a decline in revenue in its core business, contract sales.
Total revenue rose 9% to £1.34 billion, the company said.
The group cut capital expenditure excluding spectrum to £230m from £275m a year earlier, but still made a loss on core revenues minus capital expenditure.
“We have to reduce our capital expenditures due to financial constraints and we continue to incur losses as a result of the increased cost base,” Purkis said Thursday.
“The only viable way for us to invest in a network is through the proposed merger with Vodafone, which would free up £11 billion of investment.”
