China Telecom Corporation (728) H2 2025 earnings summary

Executive summary

• Service revenues grew 0.7% year-over-year to RMB485.4 billion, with net profit up 0.5% to RMB33.2 billion, driven by innovation in AI, cloud, and digital transformation.

• EBITDA increased 2.1% to RMB143.9 billion, with operating revenues at RMB529.6 billion.

• Strategic focus on AI, digital transformation, and cloudification, with significant progress in AI integration and token-based operations.

• R&D expenses rose 7.3% to RMB15.6 billion, supporting breakthroughs in core technologies and AI applications.

• Dividend payout ratio proposed at 75%, with DPS up 4.7% year-over-year.

Financial highlights

• Service revenues: RMB485.4 billion (+0.7% YoY); operating revenues: RMB529.6 billion (flat YoY).

• EBITDA: RMB143.9 billion (+2.1% YoY), EBITDA margin at 29.6%.

• Net profit: RMB33.2 billion (+0.5% YoY); basic EPS: RMB0.36.

• Capital expenditure: RMB80.4 billion for 2025, with a planned reduction to RMB73.0 billion in 2026.

• Debt-to-asset ratio declined by 1.1 percentage points to 46.2%, maintaining a robust capital structure and AAA credit rating.

Outlook and guidance

• 2026 guidance targets stable growth in service revenues, EBITDA, and net profit, with rapid expansion in intelligent revenue and token services.

• CapEx for 2026 set at RMB73.0 billion, with focus on computing infrastructure, up 26% and accounting for 35% of total CapEx.

• Strategic focus on AI-driven transformation, digital infrastructure, and high-quality growth.