State-owned China Telcom reported higher-than-expected profits in the first half of 2016 thanks to growth in 4G users and broadband subscribers.
Net profit for the six months ended June came to Rmb11.7m, up 6.3 per cent year-on-year and beating a median forecast from analysts of Rmb11.3bn.
Operating revenues were up 7.2 per cent year-on-year at Rmb176.8m, of which service revenues accounted for Rmb155.2m, reflecting a rise of 5.6 per cent. But earnings before interest, tax, depreciation and amortisation totalled Rmb50.6m, down 0.4 per cent.
Total mobile subscribers rose to 210m, an almost 16 per cent market share, according to the company. It reported 4G users grew to 90.1m, up 31.6m since the end of 2015 and accounting for 15.9 per cent of the market, while broadband subscribers reached 118m, up almost 5m for the year to date.
Mobile service revenues were up 8.3 per cent year-on-year, with almost half of the total coming from mobile mobile traffic, which grew 135 per cent for the period and saw revenue rise 42 per cent.
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