Rise in operating expenses hits China Telecom profit

27 Apr 2012

China Telecom, China’s largest broadband provider by subscribers, has reported revenues of CNY67.929 billion (USD10.757 billion) for the three months ended 31 March 2012, a year-on-year increase of 15.7%. However, a 19.3% increase in operating expenses, from CNY51.778 billion to CNY61.777 billion, caused profits for the quarter to slide by 6.3% compared to the same period in 2011. Q1 2012 saw China Telecom accrue net additions of 9.36 million wireless subscribers, of which 7.26 million signed up to 3G packages, bringing the company’s total wireless customer base to 135.83 million, of which 43.55 million were 3G subscribers. Meanwhile, the telco’s fixed broadband customer base increased to 80.40 million, up from 76.81 million at the end of December 2011. Of the reported 168.71 million local access lines in service, 107.65 million were residential lines (down from 108.01 million in December 2011), 37.43 million served government and corporate customer (36.84 million), 13.74 were public telephones (13.86 million) and 9.89 million were wireless local accesses (10.88 million).

China, China Telecom Corporation, China Telecom Group