CHINA TELECOM Q3 revenue and net profit show strong growth, with the highest net increase in mobile users among the three major operators in the first three quarters | Financial Report Insights
China Telecom reported strong growth in revenue and net profit in the third quarter, with a net increase of 14.9 million mobile users. In the first three quarters of this year, the company's mobile communication service revenue reached 156.823 billion yuan, a year-on-year increase of 3.2%
In the third quarter, CHINA TELECOM maintained strong growth momentum, with a year-on-year revenue growth of 2.9%, a net profit growth of 8.1%, and a net increase of 14.9 million mobile users.
On October 22, CHINA TELECOM announced its third-quarter financial report for 2024.
1) Key Financial Data
- Revenue in the third quarter reached RMB 125.995 billion, a year-on-year increase of 2.9%; net profit attributable to shareholders of the listed company was RMB 7.487 billion, a year-on-year increase of 7.8%;
- For the first three quarters, cumulative revenue was RMB 391.968 billion, a year-on-year increase of 2.9%; net profit attributable to shareholders of the listed company was RMB 29.299 billion, an 8.1% increase from the same period last year;
- EBITDA was RMB 111.023 billion, a 5.1% increase from the same period last year.
- Basic earnings per share were RMB 0.32 per share.
2) Key Business Performance
- In the first three quarters of this year, the company's mobile communication service revenue reached RMB 156.823 billion, a year-on-year increase of 3.2%;
- Net increase of 14.9 million mobile users, reaching 423 million users;
- Net increase of 26.4 million 5G package users, reaching 345 million users;
- Mobile user ARPU was RMB 45.6;
- The company's fixed-line and smart home service revenue reached RMB 95.624 billion, a year-on-year increase of 2.9%;
- The number of wired broadband users reached 196 million, smart home revenue increased by 17.0% year-on-year, and broadband comprehensive ARPU was RMB 47.8.
The company's announcement stated that CHINA TELECOM is promoting the acceleration of the integration of standard products with new elements such as cloud, AI, quantum, and satellite, focusing on accelerating platform content enrichment and intelligent upgrades around integration scenarios to promote the continuous enhancement of the value of mobile business.
In the first three quarters of 2024, the company's operating expenses were RMB 358.334 billion, a 2.3% increase from the same period last year. Among them, network operation and support costs were RMB 118.457 billion, a 3.5% increase from the same period last year. The main reason is that the company seized the strategic opportunities of rapid development in the digital economy, increased investment in key areas such as technological innovation and industrial digitalization, strengthened intelligent operation to reduce costs and increase efficiency, and continuously improved resource efficiency.
Labor costs were RMB 75.438 billion, a 2.3% increase from the same period last year, mainly due to the introduction of technology-based and innovative talents by the company and incentives for front-line employees and high-performance teams.
Net financial costs were RMB 5.18 billion, a 12.2% decrease from the same period last year, mainly due to a decrease in interest expenses on lease liabilities.
Yesterday [CHINA MOBILE](https://wallstreetcn.com/articles/3731034? keyword=CHINA MOBILE) also released its Q3 financial report, showing a 0.1% year-on-year decrease in operating income, with a net increase of 12.977 million households accumulated this year