China Telecom reported robust financial results and operational metrics for the first half of 2018, with overall operating revenues of RMB193.0 billion, of which, service revenues amounted to RMB177.6 billion, representing an increase of 7.0% over the same period last year. EBITDA amounted to RMB55.9 billion and EBITDA margin was 31.5%. Net profit amounted to RMB13.6 billion, representing an increase of 8.1% over the same period last year while basic earnings per share were RMB0.168, achieving persistent favorable growth.
Capital expenditure was RMB32.9 billion, representing a decrease of 19.9%. Free cash flow reached RMB18.4 billion which has increased remarkably over the same period last year.
Some operational metrics:
- The total number of mobile subscribers reached 282 million, representing a net increase of 31.66 million which was more than double of the net addition in the same period of last year.
- Handset data traffic growth over the past year has been +379%
- Average data usage now tops 4.6 GB per month
- China Telecom captured a 46.5% market share in the net additions for China
- Overall total market share increased to 18.9%
- The total number of 4G users reached 217 million, representing a net increase of 35.27 million.
- 4G penetration is now at 77%
- The total number of wireline broadband subscribers reached 141 million, representing a net increase of 7.09 million.
- 56% of wireline broadband subscribers are getting over 100 Mbps service
- Average access bandwidth is 85Mbps
- China Telecom now has 1.2 million base stations in operation with 98% population coverage and 36% utilization rate
- 96% FTTH home pass coverage in cities and towns
- Gigabit-class broadband has been deployed in >170 cities
- China Telecom's IP metropolitan network and backbone network bandwidth reached 500Tbps and 170Tbps respectively
- China Telecom is building a premium network of Internet data center clusters; deployment focused on Inner Mongolia, Guizhou, Beijing-Tianjin-Hebei, Yangtze River Delta, southern China, Chengdu-Chongqing-Shaanxi and other key regions
- Video service penetration reached 70%; 9 mil Smart Home Networking service delivered, Family Cloud subs ~20 mil
- China Telecom now serves 30 million IoT devices and is aiming for 60 million this year
