China Telecom books 13.4% profit growth on back of 4G, FTTH expansion

24 Mar 2016

China Telecom has booked operating revenue of CNY331.20 billion (USD50.89 billion) for the twelve months to end-December 2015, an increase of 2.1% year-on-year. Service revenue for the year was CNY293.36 billion (up 2.0% y-o-y), including mobile service revenue of CNY124.50 billion (up 3.5% y-o-y) and fixed line service revenue of CNY168.76 billion. Full year EBITDA, meanwhile, declined by 0.8% to CNY94.11 billion with an EBITDA margin of 32.1%. Net profit grew by 13.4% y-o-y to CNY20.05 billion. The telco attributed much of its growth to its 4G and fibre-broadband services, noting that the number of 4G terminal users on its network grew from 7.08 million in December 2014 to 58.46 million by end-2015. Over the same period, handset data traffic more than doubled to 555,000TB, of which 4G traffic represented 51%, compared to just 3% a year earlier. Helping drive that expansion, Telecom adds that it promoted six-mode handsets as the national standard, with a portfolio of around 70 of the devices on offer. Similarly, the number of fibre-to-the-home (FTTH) subscriptions reached 70.99 million, equating to 62.8% of its broadband user base, compared to 42.61 million and 39.8% in 2014.

China, China Telecom Corporation