4G, FTTH drives China Telecom's 7.2% revenue growth

24 Aug 2016

China Telecom has booked a 7.2% year-on-year increase in operating revenue for the first six months of 2016, attributing its top line growth to the popularity of its 4G, fibre-to-the-home (FTTH) broadband and IPTV services. Turnover for H1 2016 was CNY176.83 billion (USD26.61 billion), of which mobile data services contributed CNY44.62 billion – an increase of 19.3% y-o-y – whilst fixed broadband services generated CNY72.149 billion (up 6.7% compared to H1 2015). EBITDA for the period under review dipped slightly to CNY50.56 billion from CNY50.74 billion, though net profit grew 6.3% to CNY11.67 billion.

Telecom counted a total of 206.94 million mobile subscribers at the end of June 2016, claiming that 44% of that total (90.1 million) were 4G terminal users, up from 30% (58.5 million) at the end of 2015, and 15% in mid-2015. The operator attributed much of its recent revenue growth to the increasing proportion of high-value customers in its mobile user base, noting that ARPU for 4G users was CNY75.5 per month (CNY78.0 in H1 2015) compared to an overall ARPU of CNY55.6 (CNY54.1 a year earlier) for wireless customers. Similarly, the operator’s fixed broadband customer base totalled 118.00 million by 30 June 2016, including 88.34 million FTTH subscribers (75%), up from 113.06 million in December 2015 with 70.99 million FTTH users at that date (63%).

China, China Telecom Corporation