What will happen next in emerging markets?

Hutchison Telecommunications International, the emerging markets mobile-phone carrier controlled by billionaire Li Ka-shing, had a second-half loss because of a one-time charge at a unit in Thailand.

The net loss was HK$3.2 billion ($412 million), compared with a profit of HK$199 million a year earlier, while revenue rose 14 percent to HK$10.76 billion. Bloomberg derived the second-half results from annual earnings reported by the Hong Kong-based company. Spokeswoman Mickey Shiu couldn't immediately be reached to confirm the calculations.

The mobile-phone carrier, with units in eight markets including Vietnam and Indonesia, booked a HK$3.85 billion charge to write down most assets at its unprofitable Thailand venture last year. The loss overshadowed earnings from Israel, which became the company's biggest market after the sale of a controlling stake in India's third-largest mobile operator.

“There is greater risk in operating in emerging markets, but also greater potential for reward,” Andrew Jobson, who rates Hutchison Telecom shares “hold” at Daiwa Institute of Research. in Hong Kong, said before the announcement. “The Indonesia and Vietnam businesses are still in the early stages, and they are where the excitement should be coming from.”

The Hong Kong carrier, a unit of Li's Hutchison Whampoa, aims to end losses in its units in Indonesia and Vietnam in 2009, two years after starting services, Chief Financial Officer Tim Pennington said in August.

Hutchison Telecom agreed to sell phone towers in Indonesia for $500 million to PT Profesional Telekomunikasi Indonesia, according to a separate statement. The Hong Kong company, which will lease back the network assets, expects to book a one- time gain of $236 million from the transaction, according to the statement.

The sale in Indonesia will add to the HK$40 billion Hutchison Telecom previously earmarked for acquisitions and investment in existing operations.

“Being liquid at the moment puts us in a commanding position,” Chief Executive Officer Dennis Lui told reporters at a briefing in Hong Kong.

Hutchison Telecom may buy wireless operators in Asia, Middle East, Africa and Eastern Europe, Chief Financial Officer Tim Pennington said in November.

PT Hutchison CP Telecommunications, 60 percent owned by Hutchison Telecom, had 2.04 million users in Indonesia at the end of last year, compared with 1.63 million three months earlier.

Vietnamese unit HT Mobile's users declined to 152,000 as of December 31, from 185,000 on September 30, Hutchison Telecom said.

HT Mobile has gained a license to offer services based on the global system for mobile communications technology, Hutchison Telecom said. The Vietnam unit current provides services using the code division multiple access standard.

Israel's Partner Communications, in which Hutchison Telecom owns 51 percent, said that fourth-quarter profit almost doubled to 302 million shekels ($89.2 million), after adding customers and selling more non-voice services.

Partner, the country's second-largest mobile-phone operator, accounted for 57 percent of Hutchison Telecom's sales last year, the Hong Kong company said.

The mobile-phone units in Hong Kong and Macau increased combined subscribers to 2.43 million at the end of December, from
2.3 million three months earlier, the company said.

Hutchison Telecom, which also operates wireless units in Sri Lanka and Ghana, had 9.9 million mobile-phone users in its eight markets at the end of December, compared with 9.1 million three months earlier.

Hutchison Telecom's full-year profit rose to HK$66.88 billion, from HK$201 million in 2006. The company booked a one-time gain of HK$69.3 billion from selling its 67 percent stake in India's Hutchison Essar.

Will Hutchinson’s operations in the emerging markets stabilize soon?