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CK Hutchison Group Telecom Bonds Muted On Earnings Release

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  • CKHGTH EUR bonds up to 2bps tighter
  • CKHGTH revenue is +4% YoY while EBITDA and EBIT, excluding one-time gains, fell 8% and 54%, mainly due to lower 3 Group Europe contributions. CKHGT expects 2024 improvements from revenue initiatives, cost control, and lower capital spending depreciation.
  • 3 Group Europe's customer base grew 1% to 40.2 million, with revenue up 1% despite a drop in Italy's wholesale revenue. Inflation caused a significant rise in energy and staff costs, leading to a 12% decrease in EBITDA in local currencies.
  • Noting comments from group CEO Victor Li that he is open to share buybacks.

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