China Telecom books 7.7% profit growth

31 Oct 2016

Full-service provider China Telecom has reported a 7.1% increase in operating revenue for the first nine months of 2016 to CNY263.82 billion (USD38.89 billion). The operator attributed the growth to its ‘New Convergence’ strategy, which revolves around encouraging the take-up of 4G, IPTV and fibre-to-the-home (FTTH) services. China Mobile reported a 9.3% year-on-year increase in mobile subscriptions to 212.49 million, of which 107.49 million were 4G terminal users, up 145.8% compared to 30 September 2015. FTTH subscriptions, meanwhile, grew by 26.69 million y-o-y to 97.68 million, representing 80.9% of the telco’s broadband user base. Operating expenses for the nine-month period were up 7.9%, primarily as a result of growing network operation and support costs. This was offset by an 18.3% decrease in financing costs, however, leading Telecom to report net profit of CNY17.54 billion, up 7.7% y-o-y.

China, China Telecom Corporation