China Telecom Achieves Impressive Growth in H1 2023 with Strong Revenues and Profit Increase

China Telecom, a prominent player in the telecommunications industry, has reported robust financial results for the first half of 2023, showcasing remarkable revenue growth and strong profit margins. The company’s strategic initiatives across various service segments have contributed to its outstanding performance.
H1 2023 China Telecom revenue and CapexKey Highlights:

Strong Revenue Performance: China Telecom recorded an impressive operating revenue of RMB260.7 billion, reflecting a substantial year-on-year growth of 7.6 percent. The company’s consistent focus on innovation and customer-centric services contributed to this exceptional achievement.

Service Revenues Above Industry Average: Service revenues reached RMB236.0 billion, representing a commendable growth rate of 6.6 percent. This performance remained notably above the industry’s average growth rate, underscoring China Telecom’s position as a market leader.

Mobile Communications: China Telecom’s mobile communications service revenues demonstrated resilience, reaching RMB101.6 billion with a steady increase of 2.7 percent. This success highlights the company’s ability to adapt to changing consumer preferences and technological advancements.

Wireline and Smart Family Services: Wireline and Smart Family service revenues reached RMB62.0 billion, marking a significant growth of 3.6 percent. The Smart Family business segment showed exceptional growth, touching RMB9.3 billion, a remarkable increase of 15.7 percent. The penetration rate of Gigabit broadband also reached an impressive 20.3 percent. Wireline Broadband ARPU of China Telecom rose 0.8 percent to RMB39.7. China Telecom has 186.26 million Wireline Broadband customers.

Industrial Digitalisation Services: China Telecom’s strategic focus on Industrial Digitalisation services yielded substantial results, with revenues reaching RMB68.8 billion – a remarkable increase of 16.7 percent. This segment’s strong performance highlights the company’s dedication to serving the evolving needs of industries. IoT Connected Devices of it network have reached 472.82 million as it added 66.18 million during the first half.

Profitability and Capital Expenditure: The company’s net profit witnessed a significant growth of 10.2 percent, amounting to RMB20.2 billion. China Telecom’s prudent financial management was also evident in its capital expenditure of RMB41.6 billion and free cash flow of RMB17.6 billion.

China Telecom has spent 42.4 percent of its total first-half Capex on mobile network, 28.4 percent on Industrial Digitalisation, 16.9 percent on broadband network, and 12.3 percent on Operating systems and infrastructure.

China Telecom is targeting to spend RMB99 billion toward Capex for the full year of 2023.

5G Penetration and Cloud Revenue Surge: China Telecom has achieved a remarkable penetration rate of 73.4 percent among 5G package subscribers. China Telecom has 294.86 million 5G customers, an impressive growth of 26.9 million.

The mobile ARPU increased 0.4 percent to RMB46.2, showcasing the company’s ability to provide value to its customers. 5G ARPU of China Telecom was RMB48.7, a significant drop of 7.6 percent.

Moreover, China Telecom Cloud reported a staggering year-on-year growth of 63.4 percent, with revenue reaching RMB45.9 billion.

China Telecom’s exceptional performance in the first half of 2023 underscores its commitment to innovation, superior customer experiences, and market leadership. The company’s strategic investments across various service segments, coupled with its dedication to technological advancement, have positioned it as a key player in the rapidly evolving telecommunications landscape. As China Telecom continues to pave the way for connectivity and digital transformation, its impact on the industry is poised to remain significant.