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BIZCHINA / Center
China Netcom profit down 5.4% in 1st half
(Xinhua)
Updated: 2007-08-26 12:04
China Netcom, the country's second largest fixed-line operator, saw its
net profit fall 5.4 percent in the first half of 2007 under continued
pressure from mobile communication operators, the company said in a
statement.
The Hong Kong- and New York-listed company reported a net profit of 6.7
billion yuan (US$881.6 million) in the first six months of 2007, down
from 7.1 billion yuan (US$934.2 million) for the same period in 2006.
The company registered 40.7 billion yuan (US$5.4 billion) in revenue in
the six-month period, representing a slim 0.43 percent increase on last
year's same period.
Chairman Zhang Chunjiang said the slow revenue growth of fixed-line
operators was a result of increasing mobile substitution.
Although the fixed-line subscribers went up by 1.1 million from the end
of last year to 115 million at the end of June, revenue generated from
fixed-line telecommunication services continued to decline in the first
half.
The company has been active in exploring the mobile services market to
cope with the situation. Its interim report showed its broadband
subscribers grew by 32 percent year-on-year to more than 17 million in
the first half.
Zhang was optimistic about the company's performance, saying the company
"achieved remarkable results in its transformation towards a broadband
communications and multimedia services provider".
The company's revenue from broadband and Internet-related services rose
33.8 percent to 6.6 billion yuan (US$868.4 million), with its average
revenue per user of broadband services at 67.4 yuan (US$8.9), up 3.4
percent from the same period last year.
The country's dominant mobile communication operator - China Mobile said
earlier its first-half profit rose 25.7 percent to 37.9 billion yuan
(US$4.99 billion).
(For more biz stories, please visit Industry Updates)
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