China Telecom makes 3 bn yuan profit in Q4

CIOL Bureau
New Update

HONG KONG, CHINA: China Telecom, China's largest fixed-line operator, said it returned to profit in the fourth quarter of last year, matching expectations as competition continued to intensify in China's overhauled mobile communications sector.


China Telecom made a net profit of 3 billion yuan for the October-December quarter, according to Reuters calculations using company data, versus a 16.4 billion yuan loss a year earlier that included provisions for its PHS service, which is being discontinued.

The results were in line with market expectations for a 3.1 billion yuan net profit, according to a survey of 18 analysts polled by Thomson Reuters I/B/E/S.

The company, the smallest of China's three mobile carriers, reported a net profit of 14.4 billion yuan for all of 2009, in a filing to the Hong Kong stock exchange on Monday, up from an 884 million yuan profit for 2008.

Bigger rival China Mobile reported forecast-beating results on Thursday, as years of investment in its 3G network paid off as subscribers began paying more for value-added services.