China Netcom posts unexpected profit
26 March 2008
Rising numbers of broadband internet customers enabled China Netcom to offset losses on its fixed-line telecom business and finish 2007 in the black, Bloomberg reported. The company managed to defy analyst expectations by posting net income of US$1.5 billion, beating its 2006 figure by only about US$10 million. Broadband subscribers rose 31% to 19.8 million and revenues from the internet business were up 40% at US$1.96 billion. Fixed-line subscriptions in China as a whole fell for the first time last year as mobile services continued to dominate. Both Netcom and fixed-line rival China Telecom are tipped to gain if a widely rumored restructuring of the telecom industry sees them awarded mobile licenses. Analysts expect a slight increase in profits for China Telecom, which will announce its 2007 results on March 31.
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