Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Stock Exchange of Hong Kong  >  China Telecom Corporation Limited    0728   CNE1000002V2

News SummaryMost relevantAll newsSector newsTweets

China Telecom Corporation Limited : China Telecom Earnings Fall on Rising Costs

share with twitter share with LinkedIn share with facebook
share via e-mail
10/29/2012 | 08:29am CEST

BEIJING--China Telecom Corp.'s (CHA) January-September net profit fell 8% from a year earlier as increased costs associated with handset sales and network lease fees outweighed rising revenue.

China's largest fixed-line operator by subscribers has been spending heavily to fuel growth in the mobile services business it bought from rival China Unicom (Hong Kong) Ltd. in 2008 as part of a government-mandated restructuring of the China's telecommunications sector.

China Telecom, which started selling Apple Inc.'s iPhone in China earlier this year, still lags behind China Unicom and China Mobile Ltd. in the race to attract users of third-generation mobile services, which offer faster data speeds and more revenue per user than more common second-generation services.

Net profit in the nine months ended Sept. 30 totaled 12.56 billion yuan ($1.99 billion), down from a restated 13.66 billion yuan a year earlier. Revenue rose 15% to 209.98 billion yuan from a restated 182.48 billion yuan.

Sales promotions and higher costs associated with selling more mobile devices increased expenses in the January-September period. Selling, general and administrative expenses in the period rose 35% from a year earlier to 45.17 billion yuan, while other operating expenses rose 44% to 29.98 billion yuan.

China Telecom said marketing initiatives also increased following its iPhone launch, which put it up against rival China Unicom as the only official sellers of the smartphone in China. China Mobile doesn't offer the popular high-end phone because it has its own unique 3G standard that isn't widely used outside of China.

China Telecom said it added 8.76 million subscribers for its 3G mobile services in the third quarter, speeding up from about 7.41 million in the second quarter. That nonetheless left the company with 59.72 million 3G subscribers, less than China Unicom's 66.9 million and China Mobile's 75.6 million.

Average monthly revenue per user, a key measure of the long-term growth rate of telecom companies, for China Telecom's mobile services in the January-September period was 52.7 yuan, the company said. This was "primarily stable" compared with the figure for all of 2011, it said.

The company said strong growth in Internet and data services helped to mitigate the decline in users for its wireline voice services, which have fallen as customers increasingly switch to mobile phones from land-line phones.

Write to Paul Mozur at paul.mozur@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
07/25 China Escalates Efforts to Shut Down Unauthorized VPNs
07/24 CHINA TELECOM : Ranked 133rd in "Fortune Global 500" for the Year 2017
07/22 How 4G has helped change and improve lives in China
07/22 Cutting charges is just what startups need to get going
07/21 CHINA TELECOM : 4G net adds rise to 4.77m in June
07/20 Cutting charges is just what startups need to get going
07/20 How 4G has helped change and improve lives in China
07/20 CHINA TELECOM : clamping down on use of VPNs to evade Great Firewall
07/12 WUHAN THALYS MEDICAL TECHNOLOGY : Kuwaiti minister, Chinese officials discuss st..
07/12 Beijing cracks down on VPN tactics used to bypass Great Firewall
More news
News from SeekingAlpha
07/06 Ericsson, China Telecom team on IoT open platform
07/05 China Mobile loses favor with Morgan Stanley ahead of 5G spending
06/06 Fiber-optics stocks popping after Huawei telecom deal
05/30 China Tower prepping $5B-$10B public offering
05/23 China Telecom goes ex-dividend tomorrow
Financials ( CNY)
Sales 2017 370 188 M
EBIT 2017 29 435 M
Net income 2017 19 718 M
Debt 2017 75 220 M
Yield 2017 3,07%
P/E ratio 2017 13,07
P/E ratio 2018 11,73
EV / Sales 2017 0,90x
EV / Sales 2018 0,85x
Capitalization 259 594 M
Duration : Period :
China Telecom Corporation  Technical Analysis Chart | 0728 | CNE1000002V2 | 4-Traders
Technical analysis trends CHINA TELECOM CORPORATION
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 4,07  CNY
Spread / Average Target 27%
EPS Revisions
Jie Yang Chairman & Chief Executive Officer
Yi Xun Sui Chairman-Supervisory Board
An Di Wu Chief Financial Officer & EVP
Kang Min Sun Executive Director & Executive Vice President
Er Ming Xu Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
AT&T-14.15%222 742
CHINA MOBILE LTD.2.20%221 620
NTT DOCOMO INC-2.82%92 088
VODAFONE GROUP10.11%76 704