(Oct. 20, 2009 - Chinavestor) China Telecom (NYSE:CHA) (HKG:0728) reported 2009 first three quarters unaudited financial data as follows:
- Total revenue reached RMB154.748 billion ($22.668 billion), representing an increase of 15.3% YoY
- EDITDA amounted to RMB63.556 billion ($9.31 billion), down 3.9% YoY
- Profit attributable to shareholders declined to RMB11.392 billion ($1.669 billion) YoY
- ChinaTelecom (NYSE:CHA) is the largest fixed line carrier in China by subscriber base. And while the fixed line segment continues to loose customers, the mobile segment experienced strong growth with a total 42.53 million customers by the end of September. Behind the numbers.
China Telecom is under pressure due to a steadily eroding fixed line customer base. But this is no news but rather a natural development that occurs when telecommunication markets mature. On the other hand CHA has a relatively small but fast growing mobile brand with good coverage and excellent 3G phones. The profit erosion is due to heavy capital expenditure as China Telecom is building its 3G network. Investors like to see strong subscriber growth, something CHA is delivering in 3G. But if CHA can challenge CHL and CHU in the 3G race for a prolonged time, remains a question.
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