China Tower books 8% profit growth

15 Aug 2018

China Tower, the world’s largest telecom tower firm, has reported operating revenue of CNY35.3 billion (USD5.13 billion) for the first six months of 2018, an increase of 6.2% from CNY33.3 billion in the year-ago period. Despite increases in financing costs and operating expenses net profit grew by 8.0% y-o-y to CNY1.2 billion. At the end of June 2018 China Tower owned and operated a total of 1.898 million sites with 2.785 million tenants – 1.879 million of which were tower sites, with 2.70 million tower tenants – equating to a tenancy ratio of 1.47, up from 1.44 at end-2017. Regarding the improvements in efficiency, Tower noted that it had been able to reduce construction cost by taking a ‘proactive approach to the sharing of existing and new site resources’ and, as such, 71% of new leases from the nation’s three telecom service providers, China Mobile, China Telecom and China Unicom, were served on a co-location basis. The operator added that it had also adopted a strategy of transforming public utility towers and poles into telecom towers.

China, China Mobile, China Telecom Corporation, China Tower, China Unicom