Steady progress: Ana↕♠₩★lysis of the performance of the thre♣≈™e major telecom operatγ↔₹ors in the first three↔ quarters
Release date：2024/10/30
According to the Commu∑≈₹£nication Industry Netwβ↕'ork, with China Unicom rγ→eleasing its financial repo£π<₩rts for the first thre•φφe quarters, all three m✔ $ajor telecom operators have relπ₹★eased their financial reports $¥εfor the first three quartersα↕, indicating a stable and st≤ε←eady overall business deve×γlopment. In the first three quarte$∞rs, the three major telecom op♠φ≈Ωerators generated a total rev←♠ enue of 1.473588 trillion yua✘≈n, an increase of 2.4% compared tα≤≠o the same period last ≥§©year. China Telecom, China Unic©§★"om, and China Mobile saw re♥♣£venue growth of 2.9%, 3%, an♣• d 2%, respectively. During the same ×±period last year, the revenue grow™>≠φth of the three major telec₽λom operators was 6.5%, 6.7%, and 7♣₹€↕.2% respectively. Compared to last ye✘•☆™ar, the operating performγ€ ♠ance of the three major telecomΩσ™÷ operators has shown relatiλ&★vely low growth.
The slight decline under the do♣→•>minance of one family
Looking at the financial report data§σ×₩ of the three major telec←≈×om operators in recent yea←×rs, they have all performed we♠☆εll in terms of profitability,♣★ operational capability, asset qualit§←'•y, cash flow status and growth abα®₹ility, and debt repay&₩₽ment ability.
In the first three quarters of 2024, t✔¥αδhe revenue of China Tel$₹ecom, China Unicom, and China Mobγile were 391.968 billion yuan, 290.1 ♠≈2 billion yuan, and 791.5 billion₽φ♠ yuan, respectively, an increase ₩ of 2.9%, 3%, and 2%;∞≈☆ The net profits of China Tele'∑com, China Unicom, and ♥÷China Mobile were 29.299 billion yu♥ ±₹an, 19.03 billion yuan, and 11 "0.9 billion yuan, respectively, an in¶≥crease of 8.1%, 10.3%, and₩© 5.1% year-on-year. Both operatingγ σ™ income and profitability have mai ∞φntained steady growth.
In terms of net profit growth, Chi na Unicom maintained double-digitΩα¶ growth in the first three quarte Ω≈↓rs of 2024, marking the ei♦♣>•ghth consecutive year>γ≤ of double-digit growth in China Unicom≈©•♦'s third quarter fina∏✘ncial report (with double-digit growthα•↕♠ in 2017 and 2018). ≠₹In the first three quarter₩∑ s, the net profit growth rate of≠ασ China Telecom decreased by 2↑&.3 percentage points, an≠↔d the net profit growth rate of China 'Mobile decreased by 2 percent™ Ω≠age points.
In terms of market structur §↓₹e, China Mobile still♣₩≈ maintains a dominantδ↓× position in overall revenue and p•≠rofit, with revenue and net profit ac←≥©counting for 53.7% and♠δ© 69.5% respectively. But co♦∑₹÷mpared to the same perio♥↑d last year, the propo≥×rtion decreased by 0.2 $π₹and 0.9 percentage points re↕♦spectively; China Telecom•α>∞'s revenue and net profit accounteλΩd for 26.6% and 18.5®<£% respectively, an incrα'ease of 0.1 and 0.4 percentage €<$points compared to th≠©§£e same period last year; China Un♦icom's revenue and n≥♣et profit accounted for 19.7♥δ↕% and 12% respectively, ©←♠↑an increase of 0.1 and ©™↑♣0.5 percentage points compared to the→¶"✔ same period last ye¶Ωar.
5G has entered the existing market✔↓γ↓
In the first three quarters of the m∑€"obile communication mar✘§≈ ket, China Telecom saw a net increase o§£f 26.4 million 5G package ×☆πusers; China Unicom saw a n♥¥≤₹et increase of 25.961 million 5G✔'ε≤ package users in the first three quart ₹ers. As of the end of Septembe₽₹•βr, the penetration rates of Ch•εina Telecom and China U₩ ±γnicom's 5G package users were 81.©₽6% and 83%, respectively↔∏π<. Since the beginning↕&↑★ of this year, the pen™↓≈±etration rate of 5G pack÷™age users by telecom opera× ÷tors has exceeded 80%, and the penetrε>•ation rate of 5G packa¶α®σge users continues to accelerat↓εe. In the current mobile marke§ t, 5G package users have entered©ε the stage of stock market.
China Telecom is pro♣©moting the accelerated integr§∑ation of standard products with₩★ new elements of warfare such as cloud,ε$λ AI, quantum, and satellite,↔Ω> accelerating platform conte→¶≠ nt filling and intelligent upgraε∑ding around the integration sc®®Ωenario, and promoting"↕ the continuous impr×₹→ovement of mobile busine≠$↓↔ss value. In the first t↓<→hree quarters, China Tele$∏♠com saw a net increase of 14.9 million ±σ£mobile users, reaching 423 m↓×βillion households, a ne♦Ω±t increase of 26.4 million 5G package u♦♥sers, reaching 345 million household£®¥s, and a mobile user ARPU of 45.6 yuan.'≠∏←
China Unicom's networked communiδ"'cation business is s δ€table and improving in quality. The ♠÷γ∑number of mobile users reached 345 m↓♠≠illion, with a cumulative ↓¶€net increase of 11.23 million∑• for the whole year, setting a new hi<gh for the same period i¥♣εδn nearly 6 years; Among ✘±±them, there are 286 million 5G p₽'≠ackage users, and the user structure™∑↕ continues to be optimized.
China Mobile adheres to the↕'Ω integration and exp♦π ansion of "connection+application+& ↕rights", focuses on the§¥ operation of integrated storage a✔♥≠πnd value-added customers, &βstrengthens the expansion ₩±↕of segmented markets, deepens traffic ± operations, and has reached ×✘'1.04 billion mobile u§÷sers, including 539 million ₩••5G network users. Mobil ✔β e internet traffic has incπ÷₩→reased by 2.1%, and the mobile A₽≠σ™RPU is 49.5 yuan. The penetration ratε®e of China Mobile's★₽∞ 5G network users has reached 53.7%♠≥. Since China Mobile ann≠ounced the number of•☆ 5G network users in March this y♥≈××ear, the net increase in 5G ♥∏≤network users has bee'γ n 51.88 million, continuously consolida↕®ting the foundation ÷of the individual use∞§&r market and leading the 5G user ma↕•®rket.
China Mobile's fixed lin♥™≠e network share reaches 50%
In the first three q₽×π•uarters, China Telecom, China >♦Unicom, and China Mobile had ↑←λ>a total of 631 million fixe✘∏d line broadband users, including 196 m÷φ✘illion for China Telecom, 121 milliδ≥€on for China Unicom, and 314 mi llion for China Mobi→£∏le, accounting for 31%, 19%, and 5φ £≠0% of the market share, respective±©♠ly. China Mobile has reaπ ≤∑ched half of the market share, ₽©≈with a net increase of 15.36 m☆ ₩₩illion fixed broadband users thβ₽≤♦is year, exceeding the s→↑um of net increases from China"♥$± Telecom (6.1 million) and α±China Unicom (7.12 million).
China Telecom is accelerating th'©♣e upgrade of FTTR and the expa •nsion of gigabit applicat'$ions, continuously upgrading whole hou£≤βse intelligent applications and servic•✘♠es, strengthening th¥® 'e AI upgrade and integrat≈♣±ion of platforms such as smart homes,↓$∑ smart communities, and digitσ×££al villages, and creating a commun>Ω'✔ity/rural life circle and servicΩπσ≥e circle. In the fir←₹"st three quarters of 2↔↔®✘024, China Telecom&aα ¶±pos;s fixed line and smart home ±∑↔service revenue reached 95.624 billion '€&yuan, a year-on-year increasα®→"e of 2.9%. Smart home revenue increased☆♣® by 17.0% year-on-year, and the compre∑↕↕→hensive ARPU of broadband was 47.8 yu☆£↕×an. The value contribution ×₹of smart homes continues to increase.
China Unicom is accelerati&$βng the construction of↕♥& new digital infrastructu♣© re. We continued to improv↔✔✔♦e mobile Internet coverage '₩↑βand deepen co construction and✔•↔ sharing, with 1.36 ≈♠million 5G IF base stations and mor∞'e than 2 million 4G IF shared base stat←→&♥ions; Continuously promot >∞ing the popularization and quality ©£"improvement of gigabit ne€≈tworks, with 10G PON ports accounti↑™ng for 80%, leading t♣φhe industry and maintaining a good ≥≠momentum of scale deve✘δ©lopment.
The total number of fixed l€ine broadband customers of¶★✘ China Mobile has reached 31∞✔>4 million, including 276 m©≠≥↕illion household bro→♦≤adband customers, witβ ®$h a net increase of 12.★§46 million households in the¥π↕¶ first three quarters£→♥→. In the first three >•quarters, the comprehensive ARP₽☆αU for household customers β±α was 43.2 yuan.
Second curve business ₹♥★expansion and efficiency improvement
The second curve business contributes ↔φ≥♣strong momentum to the sustai₹≥ned growth of operators.
China Telecom seizes the oppor¶♠tunity of economic aπ≠ nd social digital transformation, ∑∞♥continuously cultivates key indust• ¶ries, expands ecological coopera•↑'tion, meets the digital needβφ÷s of thousands of industries ★ πwith network+cloud+AI+≥φapplications, promote∑≠↕™s the rapid development of ®✔strategic emerging businesses, and p& romotes the deep integration of digita₽∏©≤l technology and the real ec♥<εonomy. In the first three quarterδΩ≈s of 2024, the digital business reve¶£<nue of China's tel≤↕ ecommunications industry reac<Ω¶±hed 105.549 billion yuan, a year-&αon-year increase of 5.8%.
China Unicom expands its ne↑✘twork and intelligence services☆φα to increase efficiency. The computin<$λg power business has grown rapidly, wiΩ★↑☆th China Unicom Cloud♠"'s revenue reaching 43.86 billion ←Ωyuan, a year-on-year increase of 19.5%;γ§ The intelligent transformation of da<≥÷ta centers has promoted the ∑↕♦₹accelerated developmenα" ∏t of AIDC, with data center revenue ₹ε∏reaching 19.69 billi↕σon yuan, a year-on-year increase$♥ of 6.8%; The number of IoT connec↑✔÷₽tions has reached 594 million, with a ₩÷net increase of nearly 100 million; Ac£₽★tively help new industrialization, b ®oost the influence of China¶↓ Unicom's 5G+industria¥♦l Internet brand, and the cumulativeλ₽ number of 5G industry virtual pri∑≠vate network customers reached 14013; ↓Actively building a "big ★×₽security" system from se™Ω∏cure operation to secure se☆βrvices and ecological prosperi≤ty, and maintaining str☆≠ong growth in online security reven≤©↔®ue.
In terms of the governmen&÷t enterprise market, γγ✘♠China Mobile is promo✔♥>₩ting the integration of ♥δ"network+cloud+ICT" to expan±>d its scale, accelerate the expπ↔ ansion of key areas such as commercial∞≈ and customer markets, continue to ₹αdeepen industry customer operations,π₽₹∑ strengthen solution i>≈ntegration capabilities, optimize εproject delivery management, and ☆§Ωpromote the development of both quantitα•"≈y and quality. In the first three quar≤ 'ters, its DICT business reven<≥≠ ue maintained good growth. In emerging σ✔markets, China Mobile deepens its "con€tent+technology+integrated innovation" ↕∞Ω§operation, builds competitive advanta×₽σges in content media bγ★±usiness, leverages the linkage effect '♥>between domestic and international markγets, and vigorously expands ★€♦international busine£✘©ss. In the first three quarter'↓s, its content media r©evenue and international busines¥↕ ®s revenue both maintained r$ £apid growth.
Annual outlook
Analyzing the performance of the thre₽γe major telecom operators in the first ÷₹three quarters, although↔↓£¶ showing relatively low growth, there♥λ♠↔ has been steady progress. The p♠δerformance in the first♠"β₽ three quarters has ®φ$basically laid the foundation for th£ e annual performance, ≠∞& and it is expected to achieve "£ the annual operating goals.
According to previous dis"☆closures and quarterly per∞•©formance releases, it is expπε>ected that China Telecom will φ'αachieve a net profit growth rate✘φ± higher than revenue growth raδ→>te for the whole year; China Unico£ m's total profit maintaλεins double-digit growth; Ch∏σ>ina Mobile has achieved good revenue an∑↕εd profit growth.
China Telecom state£♦d that it will actively grasp the&±≠ development trend of the new ro♣★☆und of technological r₩←evolution and industrial tδδ×←ransformation, continu≤♠₩Ωe to implement the cloud to digital tε←σransformation strategy, solα←idly promote the constructio§&≤n of service-oriented, technology☆∏>-based, and secure en ≠terprises, further comprehensively dee≥π≠pen reforms, comprehensively ε≥promote high-quality devel$opment, continuously←&★ enhance core functions, improve cor→×'e competitiveness, accelerate←¥¥← the construction of world-class en∞€terprises, and continuousl↑•λy enhance enterprise value.
China Unicom stated that l£÷ooking ahead to the who∏→∏le year, it will adhere to the ov'≤₹πerall tone of seeking progress while '☆maintaining stability, promote the deγ•velopment of new networks, technolo∏♥gies, and services, and strive to achieβ± ve the performance goals of steady grow ♦th in annual operating revenue and dou♥ε↔ble-digit growth in profits.
China Mobile stated that it adher¶≥≠es to the principle of seeking progress©Ω' while maintaining stabi•α♦lity, upholding integrity and innovatio↔<♠n, focusing on enhancing∞☆≥← core functions and improving¶↑★ core competitiveness, deep "ening the implementation of th×≠∏e "One Two Two Five" strate£✘gy, accelerating the dev'☆♣elopment of new quality productivγβity, promoting digital transforma© ♦✔tion and high-quality developm☆ ¶Ωent, and continuously creat↑×≤•ing greater value for i∞★≠ts shareholders and customers.
By the end of the season, we look≥•÷ forward to the three major telecom ope↑€∑rators delivering quali ×←fied answers througho₽¶βut the year.
