China Telecom reports fall in net profit

22 Mar 2006

China’s largest fixed line incumbent has reported a 0.4% fall in its net profit for 2005, from CNY28 billion to CNY27.91 billion. It is the first time in five years that the telco has reported a decline in profit, a situation it is blaming on a slow-down in user growth. Sales for the 12 month period ended 31 December 2005 climbed from CNY161.2 billion to CNY169.3 billion. The number of local telephone subscribers reached 210 million by the end of the year, a net increase of 23.45 million, while the number of broadband customers jumped to 21.02 million, an increase of 7.19 million.

China, China Telecom Corporation, China Telecom Group