Thursday, telecommunication services provider China Telecom Corp. Ltd. (CHA) announced interim results for the first half, reporting a 27.5% decline in profit, excluding amortization of upfront fees.
Profit for the first half, including amortization of upfront fees, attributable to equity holders of the company was RMB 9.004 billion or RMB 0.11 per basic share.
Excluding amortization of upfront fees, profit attributable to equity holders of the company declined 27.5% to RMB 8.412 billion or RMB 0.10 per basic share from RMB 11.606 billion or RMB 0.14 per share in the previous year.
Operating revenues for the half year were RMB 103.146 billion. Excluding the amortization of upfront connection fees, operating revenues increased 14.8% to RMB 102.554 billion from RMB 89.351 billion in the same period a year ago. Revenues from wireline broadband access increased 18.2% to RMB 22.745 billion from the prior year.
The Beijing, China-based company said its revenues from non-voice services exceeded 50% and mobile service revenue was RMB12.814 billion.
During the first half, number of mobile subscribers increased by 11.37 million, with a total number of 39.28 million at the end of June 2009, the company said.
Total numbers of wireline broadband customers and wireless internet access customers increased by 4.78 million and 1.61million on a net basis, with a total of 49.05 million and 3.95 million respectively.
According to the company, the launch of the "e surfing" brand for the mobile services was well received in the market and drove up the customer scale and the mobile revenue with increasing market share.
Capital expenditure for the period was RMB 17.033 billion, a decline of 9.3% from the year-ago period.
Looking ahead, the company said the second half will be a critical period for the company to embark a new phase of full services integrated operation.
Taking into consideration the company's business development needs and cash flow position, the Board has decided not to pay any interim dividend for the year in order to maintain adequate funding flexibility. In addition, the Board said it will consider the final dividend proposal at the time of reviewing full year results and propose to the shareholders' general meeting accordingly.
Wang Xiaochu, chairman and chief executive officer said, "In the first half of this year, the Company grasped the opportunity and successfully promoted the fast development of the mobile business by expanding initiatives. The Company also actively explored and enhanced the integrated operation capability."
CHA is currently trading at $49.44, up $0.48 or 0.98%, on a volume of 79,232 shares.
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