China Telecom 1H profit grows 6.3%

telecomasia.net

China Telecom has reported a 6.3% increase in net profit for the first half of 2016 on the back of strong revenue growth.

Net profit reached 11.67 billion yuan ($17.55 billion), with operating revenues up 7.2% to 176.8 billion yuan and service revenues growing 5.6% to 155.22 billion yuan.

Mobile service revenues grew 8.3% to 67.5 billion yuan, or 43.4% of total service revenues.

China Telecom added 9 million total mobile subscribers during the period to 206.94 million, while the operator’s 4G customer base grew by 31.65 million to 90.1 million. Wireless broadband subscribers grew to 118 million.

Fixed line service revenues meanwhile rose by a more modest 3.6% to 87.7 billion yuan, with the company adding 4.9 million wireline broadband subscribers to 118 million.

China Telecom's FTTH subscriber base meanwhile grew by 17.35 million to 88.34 million - nearly three quarters of the operator's total wireline broadband customers.

Looking ahead, China Telecom chairman Yang Jie commented that China's national “Cyberpower” strategy is creating favorable conditions for the sustainable development of China's telecoms industry.

The company is facing intensified market competition but plans to proactively respond by focusing on scaling up its core business while pursuing growth in five major emerging areas, he said.

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