Chinese Operators’ Earnings for The First Three Quarters Show A Mixed Picture

??? As of 28 October, three domestic operators’s earnings in the first three quarters in 2013?all came out. From the overall data, the three operators posted a total revenue of 921.3 billion yuan with a net profit of 114.6 billion yuan and an average daily profit of over $ 400 million in the first three quarters.

??? Though the income level and the profitability in the industry changed little compared to the same period last year, the situation among carriers is even more complicated. China Mobile still went downhill though its revenue ran way ahead of China Telecom and China Unicom. Benefited from 3G operations that brought traffic business surge, China Unicom and China Telecom continue to maintain a relatively rapid growth.

??? It’s worth noting that with 4G licensing work accelerating and China Mobile’s TD-LTE false start, the “tripartite confrontation” pattern has been changing. So in the newly passed bill “383 reform program” formulated by Domestic Research Center, it again mentioned the restructuring project among telecommunication enterprises.

??? China Mobile came the first to disclose its earnings, it posted a revenue of 463 billion yuan, an increase of 9.4% y-oy in the first three quarters while its net profit down 1.9% to 91.5 billion yuan. Though not miserable, the results are far from expected. Especially in September, China Mobile’s posted a monthly profit of 28.4 billion yuan, down 8% y-o-y and it fell 19.5% compared with August.

??? China Mobile said that unsatisfactory earnings was mainly due to the OTT business crash. With the increasing popularity of mobile penetration and the? growing competition within the industry, China Mobile are facing great difficulties and challenges. During the first three quarters, ARPU value were keep falling because of charge adjustment, multi-card phenomenon and other factors.

??? Then China Unicom released its results in the first three quarters. It posted a revenue up 18.9%(year on year) to 220.17 billion yuan including the service income up 13.6%(year on year) to 177.38 billion yuan. And its net profit for the first three quarters is 8.37 billion yuan, increased by 53% compared to the same period last year.

??? China Unicom saw its revenue in mobile service rise 20.2% year on year to 111.94 billion yuan, where contained a 3G business service revenue of 64.65 billion yuan and its proportion in mobile service rise from 45.9% to 57.5% y-o-y.

??? China Telecom released its earnings yesterday afternoon.The Report said during the period, China Telecom’s operating revenue was 238.186 billion yuan, an increase of 13.4 percent over the same period last year and its net profit rose 17.1% year on year to 14.714 billion yuan.

??? Overall, China Unicom and China Telecom are still growing rapidly both in the amount of income and the number of users in 3G era. For China Mobile, though its TD-SCDMA technology is moving forward,?still influenced by a late start. Since the 4G era is drawing near, TD-LTE could be a turning point for China Mobile.

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