China Telecom Ltd. is reaping the benefits of the ever-growing Internet and mobile data businesses in the country. The company says its profit rose 11.8 percent in the first half of the year.
China Telecom is one of the country’s three main state-owned carriers. According to the Beijing-based company, it earned 11.4 billion yuan ($1.9 billion), or 0.14 yuan (2 U.S. cents) per share, from January to June. The carrier’s revenue rose 5.3 percent to 165.9 billion yuan ($27.2 billion).
A Huge Success
Despite many challenges, China Telecom has been performing well when it comes to profit. Intense competition and the costs of rolling out fourth-generation service have been squeezing profits for China’s state owned phone industry.
The company reported that its total number of mobile subscribers declined by 3 percent, but mobile data usage and revenue for Internet data centres both rose 30 percent. The telecommunications company is looking forward to a more profitable second half of the year.