China Telecom Corporation (728) H2 2025 earnings summary

Executive summary

• Service revenues increased by 0.7% year-over-year to RMB 485.4 billion, with net profit up 0.5% to RMB 33.2 billion, driven by innovation, industrial digitization, and deepened AI+ initiatives.

• Strategic focus on AI, cloudification, and digital transformation accelerated business evolution and high-quality growth.

• Over 250 AI agent services developed, with intelligent revenue reaching CNY 20.3 billion.

• R&D expenses rose 7.3% to RMB 15.6 billion, reinforcing technological leadership.

• Dividend payout ratio for 2025 proposed at 75%, with full-year DPS up 4.7% to RMB 0.2720 per share.

Financial highlights

• Operating revenues reached RMB 529.6 billion (flat YoY); service revenues up 0.7% to RMB 485.4 billion.

• EBITDA rose 2.1% to RMB 143.9 billion; net profit margin held steady at 6.8%; EPS at RMB 0.36.

• Operating expenses increased just 0.1% year-over-year.

• CapEx for 2025 was RMB 80.4 billion, with a planned reduction to RMB 73.0 billion in 2026.

• Debt-to-asset ratio improved by 1.1 percentage points to 46.2%; AAA credit rating maintained.

Outlook and guidance

• 2026 CapEx budget set at RMB 73.0 billion, down 9.2%, with increased focus on computing infrastructure.

• Guidance targets stable growth in service revenues, EBITDA, and net profit, with rapid expansion in intelligent revenue.

• Continued emphasis on AI, cloud, and digital transformation as core strategies.