China Telecom Corporation (728) H1 2025 earnings summary

Executive summary

• Operating revenues for H1 2025 reached RMB271.5 billion, up 1.3% year-over-year, with service revenues at RMB249.1 billion, up 1.2% year-over-year.

• Net profit attributable to equity holders was RMB23.0 billion, up 5.5% year-over-year; EBITDA rose 4.9% to RMB80.6 billion; basic EPS was RMB0.25.

• Strategic focus on AI, cloud, quantum, and security technologies, with rapid expansion in intelligent and emerging businesses.

• Completed construction of an intelligent cloud system, integrating compute, data, model, and application services, and accelerating digital transformation.

• Interim dividend of RMB0.1812 per share (pre-tax), representing a 72% payout ratio and an 8.4% increase year-over-year.

Financial highlights

• Mobile communications service revenues grew 1.3% year-over-year to RMB106.6 billion; wireline and smart family revenues up 0.2% to RMB64.1 billion.

• Industrial Digitalisation revenue reached RMB74.9 billion, up 1.5% year-over-year; AIDC revenues up 7.4%.

• China Telecom Cloud revenue was RMB57.3 billion, up 89.4%; security revenue up 18.2% to RMB9.1 billion; IoVT up 46.2%, satellite up 20.5%, quantum up 171.1%.

• Free cash flow increased 13.9% year-over-year to RMB13.1 billion; capital expenditure was RMB34.2 billion.

• Net profit margin improved by 0.3 percentage points to 8.5%; ROE rose by 0.2 percentage points to 5.0%.

Outlook and guidance

• Strategy upgraded to "Cloudification, Digital Transformation and AI for Good," focusing on AI, cloud, and digital infrastructure.

• Plans to further increase cash dividend payout ratio in 2025 compared to 2024.

• Continued investment in intelligent infrastructure, innovation-driven growth, and green, secure development.