China Telecom Corporation (728) H1 2024 earnings summary

Executive summary

• Operating revenues for H1 2024 reached RMB268.0 billion, up 2.8% year-over-year; service revenues were RMB246.2 billion, up 4.3% year-over-year, outpacing industry growth.

• EBITDA rose 4.7% to RMB76.8 billion; net profit attributable to equity holders increased 8.2% to RMB21.8 billion; basic EPS was RMB0.24.

• Strong growth in Industrial Digitalisation and cloud businesses, with digital transformation and innovation initiatives driving performance.

• Interim dividend of RMB0.1671 per share (pre-tax), up 16.7% year-over-year, representing over 70% payout of attributable profit.

• Enhanced shareholder returns and continued commitment to high interim dividend payout.

Financial highlights

• Service revenues grew 4.3% year-over-year to RMB246.2 billion, outpacing industry growth.

• Net profit increased 8.2% year-over-year to RMB21.8 billion, with net profit margin up 0.4 percentage points to 8.9%.

• EBITDA rose 4.7% to RMB76.8 billion; shareholders' equity up 3% to RMB456.3 billion.

• Interim dividend per share increased 16.7% to RMB0.1671, with payout ratio over 70%.

• Free cash flow was RMB15.5 billion; capital expenditure totaled RMB47.2 billion.

Outlook and guidance

• CapEx to revenue ratio to remain under 20% for 2024.

• Commitment to increase cash dividend payout to above 75% of attributable profit within three years from 2024.

• Continued focus on Cloudification and Digital Transformation, green infrastructure, and high-quality development.

• Full-year revenues and EBITDA expected to maintain favorable growth; net profit growth projected to outpace revenue growth in 2024.