FTTH/4G adds fuel revenue and profit growth for Telecom

29 Mar 2018

Full-service provider China Telecom has booked a 3.9% increase in operating revenue for the year to 31 December 2017, with service revenues rising 6.9% year-on-year. Telecom registered turnover of CNY366.2 billion (USD58.2 billion) for the year, up from CNY352.5 billion in 2016, whilst service revenue reached CNY331.0 billion. Growth was fuelled by strong subscriber growth and improvement. In the wireless sector, Telecom reported total net additions of 34.96 million users for the year – increasing its mobile subscriber base to 249.96 million – whilst net additions for LTE subscriptions reached 60.17 million, bringing the operator’s 4G customer total to 182.04 million by end-2017. Despite price erosion reducing ARPU for 4G services from CNY72.8 to CNY65.5, subscriber additions – and in particular 4G growth – led to an 11.7% increase in mobile service revenue for the year to CNY153.8 billion. Similarly, in the fixed segment Telecom booked 10.41 million net new broadband subscribers but 20.18 million new fibre-to-the-home (FTTH) accounts, increasing its broadband customer base to 133.53 million, of which 126.17 million were fibre users. Continuing cost control measures combined with the revenue growth saw annual EBITDA rise 7.4% to CNY102.2 billion, whilst net profit for the year grew 3.3% to CNY18.6 billion.

China, China Telecom Corporation