China Telecom Corporation (728) H2 2024 earnings summary

Executive summary

• Operating revenues reached RMB529.4 billion, up 3.1% year-over-year; service revenues rose 3.7% to RMB482.0 billion, both surpassing industry averages.

• Net profit increased 8.4% year-over-year to RMB33.0 billion, with basic EPS at RMB0.36.

• Advanced cloud, AI, and quantum technology initiatives, including the launch of the Xirang intelligent computing platform and major breakthroughs in proprietary technologies.

• Strategic reforms, open cooperation, and social responsibility initiatives deepened, with increased dividends and recognition for CSR.

• Board recommends a final dividend of RMB0.0927 per share, with a full-year payout ratio of 72%.

Financial highlights

• Service revenues up 3.7% to RMB482.0 billion; operating revenues up 3.1% to RMB529.4 billion.

• Net profit rose 8.4% to RMB33.0 billion; EBITDA increased 2.9% to RMB140.8 billion.

• Free cash flow surged 70.7% to RMB22.2 billion.

• Dividend per share increased 11.4% to RMB0.2598; payout ratio reached 72%.

• Cloud revenue reached RMB113.9 billion, up 17.1%; international business revenue grew 15.4% to RMB16.9 billion.

Outlook and guidance

• Plans to maintain healthy growth in service revenues, EBITDA, and net profit in 2025.

• Intelligent revenue expected to see rapid growth, with a focus on cloudification and digital transformation.

• Full-year 2025 CapEx planned at RMB83.6 billion, a 10.6% reduction from 2024.

• Cash dividend payout ratio to gradually increase to over 75% within three years.

• Continued investment in high-quality digital and intelligent products and services.