1.
COMMERCIAL IN CONFIDENCE
THE CABLE AND WIRELESS GROUP FAR EAST/PACIFIC BUSINESS
The Region in perspective
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From Hong Kong, Cable and Wireless activities in the Far East and Pacific Region are managed by the Director, Far East and his Area Management Board. Business is currently conducted in China, Hong Kong, Macau, Philippines, Australia, Fiji, Solomons, Tonga, Cook Islands and Vanuatu. New business prospects exist in Sri Lanka, Malaysia, Thailand and Japan.
The 1986 Report and Accounts of the Cable and Wireless Group indicate that the Far East/Pacific region produced £490 million of the Group's £907 million turnover and £198 million of the Group's £262 million trading profit. In the same year, average staff numbers for the entire Group were some 24,300 of whom 16,800 (or 69%) were employed in the Far East/Pacific region. (Some 13000 of these in Hong Kong Telephone). A significant proportion of the above turnover and trading profit relates to activities in Hong Kong which are conducted by some 13 active subsidiaries largest of these being Cable and Wireless (H.K.) and the Hong Kong Telephone Company.
As
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the
a Group, Cable and Wireless ranks amongst one of the largest investors in Hong Kong. The historical cost of fixed assets currently deployed by Hong Kong Telco and CWHK is approximately $9.1 billion. This compares with China Light with historical cost investment of $8.9 billion and Hong Kong Electric with $7.5 billion. A similar comparison of profits shows that HK Telco and CWHK together earned after tax profits of approximately $1.8 billion in the year to March 1986 whilst China Light earned more at $1.94 billion and Hong Kong Electric earned $1.35 billion.
Capital expenditure by the Group in Hong Kong over the next 5 years is forecast at some $7.8 billion excluding any expenditure on China projects or the digital highway (see paragraph 3 ). Typically over recent years capital expenditure has
has been at a level of $1 billion to $1.5 billion per annum.
Hong Kong Telephone has a current market capitalisation HK$25.89 billion.
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