China Telecom sees profits fall by 13%

Telecoms

1 April 2008

China Telecom announced a 13% decline in annual profits to US$3.38 billion, the Wall Street Journal reported. The company blamed the fall on a restatement of its 2006 earnings to reflect the purchase of three telecom companies from its parent as well as decreasing connection-fee income. Connection fees fell 34% year-on-year to US$468.9 million. Subscribers for China Telecom's core fixed-line business stood at 220 million, down 1.2% from a year earlier, while broadband internet subscribers were up 26% at 35.65 million. The company is looking for ways to expand its non-voice operations. Chairman Wang Xiaochu said the target was to boost non-voice revenue to 50% of total revenues in two years, up from 36.5% last year. Wang said the company has no update on China's telecom industry restructuring plan.

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