Business     

China Telecom's half-year profits down 8.3%

Xinhua, August 23, 2012

• China Telecom, the country's third-largest wireless carrier, said Wednesday that its profits in the first half fell 8.3 percent as a result of fierce competition and rising costs.

  China Telecom's profits stood at 8.8 billion yuan (1.4 billion U.S. dollars), down 8.3 percent from 9.6 billion yuan in the first half of 2011, the company said in its first-half report.

  Its revenues, however, rose 14.8 percent year-on-year to 138 billion yuan in the first half, said the report.

  The company, also the nation's top fixed-line operator, attributed the fall to intense competition and heavy marketing expenses for the iPhone, which it started selling in March.

  Although the marketing of the smartphone will weigh on profits in the short-term, it is expected to help the company expand its hold on the high-end consumer market and "play an important role in its long-term sustainable growth and value creation," the company said.

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