“China Telecom Corp., the country’s biggest fixed-line carrier, posted second-quarter profit that beat analysts’ estimates as the introduction of Apple Inc.’s iPhone lured new users to its wireless unit. The stock climbed,” Bloomberg News reports.
“Net income fell 10 percent to 4.55 billion yuan ($716 million), from a restated 5.05 billion yuan a year earlier, the Beijing-based company said in a statement today,” Bloomberg News reports. “That exceeded the 4.4 billion yuan median of seven analysts’ estimates in a Bloomberg News survey.”
Bloomberg News reports, “China Telecom began offering subsidized iPhone sales on March 9, giving it a new weapon in its battle for smartphone subscribers with larger rival China Mobile Ltd. and boosting usage. China Telecom expects the Apple Inc. device will enhance its long-term growth with ‘short-term pressure’ on profit margins as it accounts for subsidies on the device up front, instead of spreading them over the life of a service contract… The mobile unit added 8.35 million users during the period, boosting China Telecom’s subscriber base to 144.2 million at the end of June, the company announced last month. It ranks third in wireless users in the Asian nation, behind China Mobile and China Unicom Ltd. China Telecom had 51 million 3G users.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]