China Telecom posts $21.8B revenue in 1H12

China Telecom posted a net profit of 8.8 billion yuan (US$1.4 billion) in the first half of 2012, driven by growth in mobile users and fixed broadband subscribers.

According to its first half results ended June and released Wednesday, the Chinese telco announced revenue growth of 14.8 percent to reach 138.02 billion yuan (US$21.8 billion) over the same time last year.

Its strong showing can be attributed to the growth in mobile subscribers, which increased 17.71 million in the first six months of the year to bring its total subscriber base to 144 million users. This represents 13.8 percent of the country's mobile phone market share, it noted.

Of the 17.71 million subscribers, 14.67 million are 3G subscribers and this brings the company's total 3G customer base to 50.96 million, the telco added.

Fixed broadband also provided postive results generating 33.37 billion yuan (US$5.3 billion) in revenue in the first half, which represents a 12.1 percent on-year growth. Broadband subscribers also shot up by 6.89 million to bring the total number to 83.7 million.

That said, the company expects the introduction of Apple's iPhone in its portfolio to cause short-term pressure on its profits. The net profit of 8.8 billion yuan is a 8.3 percent year-on-year drop, it stated.

The device is important for the company's long-term growth and brand value though, said China Telecom.