China Telecom Sees 16% YoY Growth in Q1 Revenues

China Telecom continues to grow rapidly as a mobile operator although profit margins in Q1 were squeezed. Mobile substitution continues to impact the number of fixed lines in service and the company is seeing intensified competition.


For Q1 2012, China Telecom reported operating revenues of RMB67,929 million, representing an increase of 15.7% over the corresponding period of last year. Excluding mobile handset sales, Q1 revenues amounted to RMB62,288 million, representing an annual increase of 12.0%.

EBITDA (before CDMA network capacity lease fees) was RMB24,028 million, representing an increase of 0.9% over the corresponding period of last year. Meanwhile, profit attributable to equity holders of the company was RMB4,272 million, representing a decrease of 6.5% over the corresponding period of last year.

Some highlights for the quarter:

The number of mobile subscribers reached a total of 136 million, of which 43.55 million were 3G subscribers.

The net addition of mobile subscribers was 9.36 million for the first quarter and the average mobile service revenue per user per month (ARPU) was around RMB51.7, which was primarily stable as compared to that for the full year of last year.

The number of local access lines in service declined by 0.88 million in the first quarter.

The number of wireline broadband subscribers reached 80.4 million, representing a net addition of 3.59 million.

The fundamentals of the overall wireline services continued to remain stable.

Revenues from sale of mobile terminals were RMB5,641 million, an increase of 80.7% over the corresponding period of last year.

The wireline broadband subscribers reached 80.4 million, representing a net addition of 3.59 million.

China Telecom sees 3G service as entering into a phase of accelerated growth.

China Telecom sees wireline broadband service is still in a period of high growth.
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