China Telecom’s First-Half Net Profits Up Just 0.3% Despite Expansion in Mobile Subscribers

(Caixin) China Telecom, one of the country’s three biggest telecom companies, has released its 2020 interim earnings report, which showed that the company’s revenues and net profits in the first half of the year were roughly flat from the same period in 2019, despite a sizable increase in its mobile subscribers.

During the period between January and June, China Telecom’s operating revenues grew 1.7% year-on-year to 193.8 billion yuan ($28 billion), with service revenue, the company’s largest source of income, rising 2.5% to 187.1 billion yuan, according to the financial report published on Tuesday. Net profits totaled 13.9 billion yuan, just up 0.3% from a year earlier.

In the first six months of the year, China Telecom spent 20.2 billion yuan to build some 80,000 5G base stations in partnership with China Unicom, which last week published a similar earnings report.

As of the end of June, the company’s total number of mobile subscribers reached 343 million, up 7.9 million from a year earlier, while its number of 5G package subscribers climbed to 37.84 million, according to the report.

The company also said that it expects solid growth potential from new infrastructure including 5G services and data centers.

Source: Caixin By Ding Yi / Aug 19, 2020 04:25 PM 

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