China Telecom profit falls on lower investment income

4

China Telecom Corp.’s net profit for the first nine months of the year fell 3.4% on year, mainly due to a sharp drop in investment income.

Net profit decreased to 18.39 billion yuan ($2.60 billion), as investment income and income from investments in associates fell 50%, China Telecom said Monday.

The company made a one-off share dilution gain from the listing of China Tower Corp. in the same period last year, it said.

For the first nine months, revenue ticked down 0.8% to CNY282.83 billion, but service revenue was up 2.5% at CNY271.48 billion, as the company had a net add of mobile users of 27.43 million.

China Telecom said it is commencing the co-building of a 5G network with China Unicom , which will help rapidly create 5G service capability at lower network construction and maintenance costs.