China Telecom says 2007 net profit fell- per cent
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Hey there, time traveller!
This article was published 31/03/2008 (6565 days ago), so information in it may no longer be current.
SHANGHAI, China – China Telecom Corp. said Monday that its net profit sank- per cent in 2007 as widespread substitution of mobile phones for fixed phone lines bit into its traditional stronghold.
Net profit in 2007 fell to 23.7 billion yuan (US$3.4 billion;C2.2 billion) from 27.2 billion yuan in 2006, the mainland’s former phone monopoly said.
China Telecom said income from its voice business fell 7.9 per cent from the year before as the number of its access lines in service fell 1.2 per cent to 220 million, from 222.7 million in 2006.
However, overall revenues climbed 1.7 per cent to 178.7 billion yuan (US$25.5 billion; C16.1 billion) from 175.6 billion yuan.
China Telecom is gearing up for a “full services offering” to expand its non-fixed line broadband and wireless businesses as it struggles to compete with cell-phone rival China Mobile.
“Although the intensifying market competition is a serious challenge to us, the upcoming full services offering will bring enormous business opportunities,” Wang Xiaochu, China Telecom’s chairman, said in a statement.
The company saw declines in virtually every area of its traditional phone business. Revenue from local phone services, which comprised nearly 40 per cent of total operating revenues, fell 9.8 per cent. Upfront connection fees dropped 33.7 per cent; installation fees fell six per cent; income from monthly fees declined 12.5 per cent; and revenue from long-distance phone services sank six per cent, China Telecom said.
China Telecom also said it incurred 572 million yuan (US$81.7 million; C51.7 million) in losses due to damage caused by severe snow and ice storms in January and February, a figure not reflected in the 2007 financial figures.