China Telecom H1 2012 Profit Down 8% YoY
China Telecom Corporation Limited, 8/22/12
China Telecom (NYSE: CHA; 0728.HK) has announced its H1 2012 financial results with revenue of RMB 138.02 bln, an increase of 14.8% YoY over H1 2011. Operating revenue excluding mobile terminal sales rose 11.3% YoY to reach RMB 126.58 bln.
Net profit for the period was RMB 8.81 bln, down 8.3% YoY.
Operating revenue for H1 2012 broke down as follows: Operating revenue from wireline voice was RMB 22.24 bln, down 15.9% YoY from RMB 26.46 bln in H1 2011; revenue from mobile voice services was RMB 23.29 bln, up 23.4% YoY from RMB 18.0 bln; revenue from internet access services was RMB 42.83 bln, up 18.2% YoY from RMB 36.2 bln; revenue from value-added services was RMB 14.90 bln, up 19.2% YoY from RMB 12.54 bln; revenue from integrated information application services was RMB 11.79 bln, up 20.4% YoY from RMB 9.82 bln; revenue from managed data and leased line was RMB 7.68 bln, down 9.7% YoY from RMB 7.0 bln; other revenue was RMB 15.29 bln, up 51.5% from RMB 10.14 bln. In H1 2012 China Telecom took in no revenue from upfront connection fees as compared to revenue of RMB 98 mln in H1 2011.
Total fixed-line telephone subscribers fell 1.2% YoY to 167.5 mln from 169.59 mln. Of this total, household local access lines were 106.8 mln, down 1.1% from 108.0 mln in H1 211; government and enterprise local access lines rose to 38.0 mln, up 3.3% from 36.8 mln; public telephone lines slipped to 13.6 mln from 13.9 mln; total PHS subscribers fell to 9.1 mln, down 16.5% from 10.9 mln in H1 2011. Wireline local voice usage for H1 2012 totaled 87.81 bln pulses, compared to 105.52 bln pulses in H1 2011. Wireline domestic long distance usage during H1 2012 was 21.25 bln minutes, down from 27.59 bln minutes in H1 2011. Wireline international long distance usage during H1 2012 was 489 mln minutes, compared to 576 mln minutes in H1 2011.
Total mobile subscribers in H1 2012 were 144.18 mln, up 14.3% YoY from 126.47 mln in H1 2011. Total 3G subscriptions in H1 2012 were 50.96 mln, up 40.2% YoY from 36.29 mln. Total "e-Surfing Young" mobile subscribers increased by 2.37 mln to 8.49 mln. Total "Enjoy" 3G package subscribers rose 7.94 mln to 15.83 mln. 3G penetration reached approximately 60%. Mobile ARPU was RMB 52.4, while 3G ARPU was approximately RMB 74. China Telecom had 580 3G handset models and 240 smartphone models as of H1 2012. 3G handset data traffic increased rapidly with average monthly data usage per user reaching 111 MB.
Revenue from wireline broadband rose 12.1% YoY to RMB 33.37 bln. Total broadband subscribers for H1 2012 were 83.7 mln, up 9.0% YoY from 76.8 mln subscribers in H1 2011. The percentage of subscribers with access speeds of 4Mbps or higher exceeded 60%. The number of FTTH subscribers grew 4.55 mln to 9.31 mln.
China Telecom's capital expenditure for H1 2012 was RMB 25.65 bln, accounting for 18.6% of total revenues, 70.4% of which was allocated to broadband and internet infrastructure.
China Telecom's Hong Kong-listed company confirmed it will complete the acquisition of CDMA network assets from its mainland parent company, China Telecommunications Corporation, by the end of 2012. The initial consideration is RMB 846 bln, and is subject to price adjustment, which reflects changes in the value of the CDMA network assets and associated liabilities during the period between the date following the base date for the asset appraisal (March 31, 2012) up to (and including) the completion date of the acquisition, to arrive at the final consideration.
To view China Telecom's full earnings report please see here. To view China Telecom's earnings presentation please see here.
Keywords: China Telecom ARPU fixed-line handset smartphone broadband penetration profit revenue telecom mobile subscribers 3G broadband subscribers E-Surfing FTTH Internet access leased line PHS PHS subscribers voice services 0728.HK CHA telephone subscribers H1 2012 fiber optics capex fiscal report connection speed handset model
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