China fixed-line operator, China Telecom (ticker: CHA), announced (WSJ subscription required) its
net profit doubled in 2004 to $3.38 billion (assuming use of the company's restated financial numbers for 2003). Here are the details:
2004 Financial Results:
(all percentage changes and comparisons are year on year, unless stated otherwise)
- Revenue rose 6.4% to $19.5 billion.
- Internet service revenue was $1.7 billion.
telephone and Internet services subscribers were the key drivers of revenue
- Net profit doubled to $3.4 billion.
- Analysts had forecast net profits between $2.9 billion and $3.1 billion.
- The company restated its figures for 2003 to reflect
the revaluation of the 10 provincial networks that it acquired from its
parent in April of last year.
- Removing the impact of asset
revaluation, which China Telecom conducts every three years, analysts
said the company's results would have shown high-single-digit year-on-year
Local telephone-service customers
increased 16% to 186.65 million, which includes 42.2 million users of
its wireless local access service, known as "Little Smart".
- Broadband subscriber base grew 91% to 13.84 million.
Capital expenditures are expected to drop slightly to $6.8 billion.
- Capital expenditure covers the upgrade of its network and preparations
for 3G networks.
- CHA will reduce its capital expenditure on wireless local
- It will focus more on developing its
broadband and internet-based networks.
- It expects value-added services, such as short
text messages, and broadband to grow.
As of the end of February 2005, China had:
- 344 million mobile users.
- 320 million fixed-line
- Mobile penetration rate of 26%.
For more on China Telecom and other Chinese telecom companies, see here from the China Stock Blog.