China Telecom's nine-month revenue falls 3.7%, profit down 14.8%
Overview
China telecom operator's nine-month revenue fell 3.7% yr/yr to RMB382.4 bln
Net profit for first nine months declined 14.8% yr/yr to RMB26.2 bln
Company cites stable operations and business structure optimization amid revenue and profit declines
Outlook
China Telecom did not provide specific financial guidance for the current or future periods in its press release
Result Drivers
BUSINESS STRUCTURE OPTIMIZATION - Co said it focused on optimizing business structure and refreshing growth drivers
LOWER NETWORK AND ADMINISTRATIVE COSTS – Operating expenses fell 2.2% to RMB351.5 bln, led by lower network operations and support and SG&A costs, partly offset by higher personnel expense
5G NETWORK SCALE – 5G network subscribers reached 330.39 mln as of Sept. 30, up from 292.41 mln, indicating expanding customer reach
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Operating Revenue | RMB 382.4 bln | ||
9M Net Income Attributable | RMB 26.2 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy"
Wall Street's median 12-month price target for China Telecom Corp Ltd is HK$5.60, about 28.3% above its October 22 closing price of HK$4.37
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)