China Telecom H1 2011 Profit Up 10% YoY

   Date:2011/08/25

China Telecom (NYSE: CHA; 0728.HK) has announced its unaudited financial results for H1 2011, with operating revenues up 11.7% YoY to reach RMB 120.11 bln.

Net income attributable to shareholders reached RMB 9.71 bln, up 10.2% YoY.

Operating revenue for H1 2011 broke down as follows: revenue from wireless voice services rose 50.6% YoY to RMB 37.79 bln, with revenue from mobile voice services up 27.7% YoY to RMB 18 bln, revenue from mobile data services up 51.6% YoY to RMB 13.1 bln, and other mobile revenue jumping 186% YoY to reach RMB 6.65 bln. Revenue from fixed-line services remained flat YoY at RMB 82.33 bln, compared to RMB 82.46 bln in H1 2010. Of those, revenue from fixed-line voice services dropped 19.6% YoY to RMB 26.46 bln. Revenue from fixed-line data services grew 12.6% YoY to RMB 52.37 bln, with revenue from fixed-line internet access up 13% YoY to reach RMB 30.21 bln, revenue from VAS and integrated information services up 10.9% YoY to RMB 15.21 bln, and revenue from managed data and leased line services up 14.7% YoY to RMB 6.95 bln. Other revenues rose 15.3% YoY to RMB 3.49 bln.

Total fixed-line telephone subscribers fell 1.6% compared to the end of 2010 to 172.22 mln. Of this total, household local access lines reached 109.1 mln, down from 110.2 mln at the end of 2010, government and enterprise local access lines rose to 35.4 mln, up from 33.97 mln at the end of 2010, public telephone lines slipped to 14.3 mln, down from 14.5 mln at the end of 2010, and total PHS subscribers fell to 13.4 mln, down from 16.4 mln at the end of 2010. Wireline local voice usage for H1 2011 totaled 105.52 bln pulses, compared to 128.78 bln pulses in H1 2010. Wireline domestic long distance usage during H1 2011 reached 27.59 bln minutes, down from 36.34 bln minutes in H1 2010. Wireline international long distance usage during H1 2011 was 576 mln minutes, compared to 590 mln minutes in H1 2010.

Total number of mobile subscribers reached 108 mln, representing a net addition of 17.85 mln from the end of last year, up by 19.7%, of which 3G mobile subscribers was 21.54 mln, representing a net increase of 9.25 mln from the end of last year, up by 75.3%. Mobile voice usage reached 87.58 bln minutes, compared to 86.97 bln minutes in Q4 2010. Total 3G mobile data usage rose 78.3% from 834 TB in January 2011 to 1,487 TB in June 2011.

For China Telecom's mobile services, subscribers to 189 Mailbox mobile e-mail services rose 20.2% to reach 36.78 mln, compared to 30.6 mln at the end of 2010. E-Surfing Live instant messaging subscribers grew 28.6% YoY to 28.35 mln from 22.04 mln at the end of 2010. E-Surfing Video subscribers grew 88.2% YoY from 3.39 mln at the end of December 2010 to 6.38 mln. The number of registered users for China Telecom's E-Surfing app store grew 385.8% from 5.62 mln to 27.3 mln.

Total wireline broadband subscribers reached 70.09 mln, up 10.4% compared to the end of 2010. China Telecom aims to add approximately 12 mln wireline broadband subscribers in 2011.

China Telecom's capital expenditure for H1 2011 reached RMB 20.97 bln, compared to RMB 17.92 bln in H1 2010.

Source:marbridgeconsulting

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