Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
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
0
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
0
Latest news on CHINA TELECOM CORPORATION
01:25p CHINA TELECOM : Global to provide UROS Goodspeed's network in China and Hong Kon..
03/24 It's time for China, EU to dump roaming charges
03/24 Comba Telecom in Winter in China
03/24 It's time for China, EU to dump roaming charges
03/23 CHINA TELECOM : Shenzhen Water, China Telecom, and Huawei Jointly Release the Wo..
03/23 CHINA TELECOM : May Build 5G with Other Operators
03/23DJChina Mobile 2016 Net Profit CNY108.7 Billion
03/21 CHINA TELECOM : 4G, fibre fuel China Telecom topline growth
03/21 CHINA TELECOM : 2016 Net Down 10.2%
03/21DJCHINA TELECOM : 2016 Net Profit Falls 10.2% to CNY18.0 Billion
More news
Sector news : Wireless Telecommunications Services - NEC
05:23pDJAT&T : Years After 9/11 Chaos, U.S. to Build Wireless First-Responder Network--U..
03:32p Samsung launches Galaxy S8 and dreams of recovery from Note 7
12:45pDJWith Washington's Blessing, Telecom Giants Can Mine Your Web History
11:45aDJAT&T : Years After 9/11 Chaos, U.S. to Build Wireless Network for Police, Firefi..
08:48aDJSAMSUNG ELECTRONICS : Battered Samsung Looks to Restore Trust -- WSJ
More sector news : Wireless Telecommunications Services - NEC
News from SeekingAlpha
03/29 China Telecom Eyes 5G Network Sharing
02/23 CHINA UNICOM : This Time Is Different
2016 China Telecom Spins Off Content Units
2016 CHINA'S RURAL E-COMMERCE : The Next Growth Opportunity
2016 IPO PREVIEW : GDS Holdings
Advertisement
Financials ( CNY)
Sales 2017 368 931 M
EBIT 2017 29 644 M
Net income 2017 19 942 M
Debt 2017 96 036 M
Yield 2017 2,90%
P/E ratio 2017 13,43
P/E ratio 2018 12,13
EV / Sales 2017 0,99x
EV / Sales 2018 0,93x
Capitalization 270 873 M
More Financials
Chart CHINA TELECOM CORPORATION
Duration : Period :
China Telecom Corporation  Technical Analysis Chart | 0728 | CNE1000002V2 | 4-Traders
Full-screen chart
Technical analysis trends CHINA TELECOM COR...
Short TermMid-TermLong Term
TrendsBullishBearishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 4,16  CNY
Spread / Average Target 24%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Jie Yang Chairman & Chief Executive Officer
Xiao Wei Yang President & Chief Operating Officer
Yi Xun Sui Chairman-Supervisory Board
An Di Wu Chief Financial Officer & EVP
Kang Min Sun Executive Director & Executive Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CHINA TELECOM CORPORAT..5.59%39 302
AT&T INC.-2.54%255 063
CHINA MOBILE LTD.5.37%227 274
NTT DOCOMO INC-0.32%94 370
SOFTBANK GROUP CORP3.54%79 505
KDDI CORP1.40%70 706
More Results