China Telecom sees net profit edge up 1.2 per cent to US$2.57b in first 3 quarters as it reels from VAT scheme, rules on subsidies
Mobile subscribers hit 194.34 million as of September 30, with nearly 1/4 using 4G as carrier focusses on migrating subscribers to faster service
China Telecom, which saw modest earnings growth in the first nine months of this year, is pushing for a faster 4G network roll-out amid greater efforts to switch more subscribers to its mobile broadband service.
“The company will encourage more customers to increase data usage,” Chang Xiaobing, the newly appointed chairman and chief executive of China Telecom, said in a regulatory filing on Wednesday.
China Telecom reported a 1.2 per cent increase in net profit for the three quarters ended September 30 to 16.36 billion yuan (US$2.57 billion), up from 16.17 billion yuan in the same period last year.
It said the nine-month financial results were negatively affected by the central government’s implementation of a value-added tax scheme and directive to the country’s three telecommunications carriers to reduce monthly tariffs and handset subsidies.
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Total revenue advanced 1.1 per cent to 246.32 billion yuan from 243.61 billion yuan a year ago.
