Hutchison spending EUD600 mil. for 1 mil. net adds Bank says company has two years of shelf life Left

摘要

Hutchison whampoa-owned H3G should be careful what it wishes for when it comes to subscriber growth, given that its run rate of signing up 1 million 3G users worldwide since the beginning of the year has already cost it an estimated EUD600 million (US$714.55 million). "It should exit the market now," says Nomura analyst Mark James. "We believe the company is throwing good money after bad, and we struggle to see how it can ever make an economic return." He argues that based on the bank's financial estimates (see fig.1), shareholders may "call time" on H3G within two years.