4G, fibre fuel China Telecom topline growth

21 Mar 2017

Full service provider China Telecom has reported a 6.4% increase in annual operating revenue for 2016, to CNY352.285 billion (USD51.074 billlion), with service revenue making up CNY309.644 of that total, driven by continuing subscriber growth, in particular the number of 4G terminal users. Mobile service revenue grew by 10.5% year-on-year to CNY137.611 billion, as Telecom’s mobile subscriber base grew from 197.90 million to 215.00 million at 31 December 2016, of which 121.87 million were 4G users, compared to 58.46 million at end-2015. The wireline segment, meanwhile, saw more muted growth, with revenue increasing by 1.9% y-o-y to CNY172.033 billion. Fuelling the expansion was a net increase in fibre-to-the-home (FTTH) connections of 35.00 million, bringing the total up to 105.99 million or 86% of Telecom’s fixed broadband user base from 70.99 million (63%) at the end of 2015.

EBITDA for the year rose 1.1% to CNY95.139 billion, with a margin of 30.7%. Annual net profit was down 10.2% year-on-year to CNY18.004 billion, though Telecom notes that, excluding the one-off gain of around CNY3.9 billion from the disposal of its tower assets, adjusted net profit was up 11.7% compared to 2015.

China, China Telecom Corporation