01 Sep 2004
China Telecom Corporation Limited (the "Company") (HKSE: 728; NYSE: CHA) announced its 2004 interim results today. The Company's core lines of business continued to grow in the first half of 2004. The local telephone subscriber base expanded rapidly by 10.9% from the end of last year reaching 178.5 million. The total usage of local voice services also increased substantially. In the first half of this year, the total usage of local voice services reached 210.7 billion pulses, an increase of 13.6% from the first half of last year. The wireless local access service made an important contribution to this growth. The subscriber base for broadband access services reached 10.9 million, increasing by 50.6% from the end of last year. Driven by the growth of the broadband services, revenue generated from Internet services reached RMB6.6 billion, accounting for a remarkably higher proportion of our total revenue. The domestic long distance services recorded positive growth both in terms of volume and revenue.
The Company achieved robust financial performance in the first half of 2004, with improved profitability. The Company recorded total operating revenue of RMB76.0 billion (excluding connection fee) in the first half of 2004, an increase of 9.8% compared with the first half of last year; EBITDA and net income of the Company were RMB39.8 billion and RMB10.5 billion, respectively, increasing by 10.4% and 28.1%, respectively, over the same period of last year.
In the first half of this year, the Company completed the acquisition of telecommunications businesses in ten provinces and raised net proceeds of approximately US$1.5 billion through an offering of new shares to finance the acquisition, successfully achieving a remarkably strong external growth. With the implementation of the Company's management system, all levels of management in the newly acquired subsidiaries have been geared towards achieving their business and financial objectives. The growth rate of these companies increased and their operating and capital expenditures were effectively controlled, thus improving their profitability.
Mr. Zhou Deqiang, Chairman and CEO, pointed out that, in the second half of 2004, greater demand for telecommunications services is expected and industry competition will play a significant part in the Company's operation. Adhering to its goal of becoming "a world-class telecommunications operator" and focusing on rapid development, continued business reform, effective management and human-resources-based strategy, the Company will strive to achieve sustainable and sound development and maximize shareholders' value.
For more details, please visit China Telecom's website at www.chinatelecom-h.com.
Forward Looking Statements
Certain statements contained in this document are "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements are, by their nature, subject to known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of China Telecom Corporation Limited (the "Company") to be materially different from any future performance, financial condition or results of operations set forth in such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company's most recent Annual Report on Form 20-F and the Registration Statement on Form F-3 filed with the U.S. Securities and Exchange Commission ("SEC") and in the Company's other filings with the SEC.
China Telecom Corporation Limited
Mr. William Li, Investor Relations Department