China Telecom released the financial report over the first three quarter on October 27, which shows the operating revenue hit CNY 274.702 billion with YoY increase of 4.1%; service revenue reached CNY 249.722 billion, YoY increasing 7%; profit attributable to equity shareholders was CNY 18.502 billion, up by 5.5% over the same period last year.
According to the report, mobile subscribers of China Telecom reached 241 million in the first three quarters, net increase by 25.56 million, of which 4G device users increased by 45.65 million and reached 168 million. Mobile Internet traffic consumption accelerated growth speed with a YoY increase of 142%, 4G DOU reached 1.5GB and average revenue per user (ARPU) kept rising steadily.
Fixed network business maintained satisfactory growth in China Telecom. Cable broadband network users reached 131 million with a net addition of 8.19 million, of which FTTH users hit 122 million with a net increase of 15.81 million. Fixed network achieved in-depth integration with smart home devices and promoted the rapid development of smart home business, E-surfing IPTV users added 17.14 million and reached 78.47 million. China Telecom enhanced advantages of the ecosystem, new business including DC, cloud and big data maintained rapid growth.
In the first three quarters, the operating cost increased by 4.2% over the same period last year. Due to the growth of depreciation and amortization brought by 4G investment and fiber broadband network construction, the relevant cost increased by 3.8% YoY; with the further expansion of network scale and growth in the tower leasing and related costs, the network operation and supporting costs increased by 9.8% YoY; the input in marketing resources caused a YoY increase of 7.4% in selling expenses, general and administrative expenses and 5.8% in labor cost.
In the future, China Telecom will unswervingly promote the “transformation 3.0" program, focus on improving abilities and expanding cooperation, build a "ecological cube" with the cooperative partners and constantly enhance the ecological advantages; China Telecom will promote the sustained increase of scale and benefit, deepen the reform to stimulate vitality, strengthen market awareness, break the barriers of productivity and create a good atmosphere of working and entrepreneurship. By strengthening the implementation and process control, China Telecom will make new achievements in promoting the transformation and upgrading process.