Shareholders in Hong Kong’s Hutchison Whampoa probably rolled their eyes last week when they got wind that it might pile yet more money into telecommunications. Hutch’s investors have stood by and watched telecoms sap cash from the group’s more successful retail and port operations for almost a decade. And the company is supposed to be cutting back on acquisitions. But things in telecoms are not as bad as they once were.

Last week the conglomerate, which runs the European mobile operator 3, reportedly bid €2bn for Ireland’s Eircom, which is under bankruptcy protection. The Hutchison Whampoa bid was rejected because of “conditions”, but 3 is expected to bid again. Hutchison is well placed to snap up flagging European telecoms operators. Cash from operations has been growing for three consecutive years, and net debt is a manageable 1.6 times earnings before interest, tax, depreciation and amortisation.

And the outlook at 3 finally looks more sustainable. Revenues at the mobile operator picked up 16 per cent last year and ebitda surpassed capital expenditure for the first time. The unit contributed almost a sixth to the group’s ebitda in 2011. Capital expenditure as a proportion of the group’s total also fell to a third, from an uncomfortable half previously.