Wednesday, March 29, 2017

China Telco Data for Feb 2017 and Market Update - Part 4

Baidu, the No. 1 Chinese Internet search services provider

Baidu is the third ranked Chinese Internet company by capitalisation but its sales have stalled; results for 5 calendar years 2011 to 15 (RMB millions):

2011 2012 2013 2014 2015 2015 ($)
Total revenue 14501 22306 31944 49052 66,382 10248
Cost of revenues 3897 6449 11,472 18,885; 27,458; 4,239
SG&A: 1,693 2,501 5,174 10,382 17,076 2,636
R&D: 1334 2305 4107 6981 110176 1571
Total costs: 6,924 11,255 20,753 36,248 54,710 8,446
Operating profit 7577 11,051 11191 12,804 11672 1802
Net income: 6,620 10,391 10,388 12,253 32,432 5,007

Latest Baidu financial Q4 and calendar 2016 results

On February 23rd Nasdaq-quoted Baidu, the leading Chinese language Internet search provider, announced unaudited financial results for the fourth quarter and fiscal year ended December 31,  2016 as follows:

1. Total revenue in the fourth quarter of 2016 of RMB 18.212 billion ($2.623 billion), a 2.6% decrease from the corresponding period in 2015, and flat year-on-year, excluding Qunar in the fourth quarter of 2015.

2. Total revenue in fiscal year 2016 of RMB 70.549 billion ($10.161 billion), a 6.3% increase and 11.9% year-on-year increase, excluding Qunar from 2015.

(NB: in October 2015 Baidu exchanged a number of shares it owned in online travel company Qunar of the Cayman Islands for a number of shares in Ctrip, as a result of which Ctrip ended up with a 45% share of Qunar and Baidu ended up with a 25% share of Ctrip.)

Annual results for China's three telcos with collective revenue of $200 billion

China Mobile

China Mobile lift-off in 4G data usage from 849 million 4G users drives 6% revenue growth; results for 5 years 2011 to 15 (RMB millions):


      2011       2012        2013       2014       2015     2015 ($)
Operating revenue: 547,286 591,006 640,048 651,509 668,335 103,173
Operating expenses: 396,541 440,317 508,624 534,189 565,413 87,285
Profit from operations: 250,745 150,689 131,424 117,320 102,922 15,888
Profit to shareholders: 122,162 126,799 116,791 109,218 108,539 16,756
2011; 2012; 2013; 2014;

2016 calendar year financial results reported March 23rd (Customers, millions; RMB millions or as shown):
2016 2015  Change
Total mobile customers: 848.9 826.24 2.70%
4G customers: 535.04 312.28 71.30%
Operating revenue: 708.421 668.335 6%
from telecom services: 623.422 584.089 6.70%
EBITDA: 256.677 240.028 6.90%
Profit to shareholders: 108.741 108.539 0.20%
Basic EPS (RMB): 5.31 5.3 0.20%


Highlights for China Mobile in 2016

4G penetration of customer base reached 63%

Wireless data traffic increased by 43.5% and was 46.2% of revenue from telecom services.

Excluding the one-off gain in 2015 due to the national consolidation of tower assets into one company the profit shown above increased by 10.5%.

After adding 400,000 more 4G base stations in 2016 the company now operates 1.51 million of them that cover more than 1.3 billion people.

Average wireless download speeds on urban roads reached 40Mbit/s.

Commercial VoLTE services were introduced into more than 300 cities.

In 2016 the company added 22.59 million wireline broadband customers for total 77.62 million, 76.9% of which subscribed to services with a bandwidth of 20 Mbit/s or above. HD VoD customers exceeded 22.80 million.

In 2016 the company served 5.45 million corporate customers.

Connections to the company's national dedicated IoT core network reached 100 million.

Traffic for its mobile payment services exceeded RMB 1 trillion.

After minimal growth 2013/14/15 China Telecom recovers momentum in 2016

China Telecom results for 5 years 2011 to 15 (RMB millions):

2011; 2012; 2013; 2014; 2015; 2015 ($)

Operating revenue: 245,149; 283,176; 321,584; 324,394; 331,202; 51,129

Operating expenses: 221,028; 261,968; 294,116; 295,886; 304,760; 47,047

Operating income: 24,121; 21,208; 27,468; 28,508; 26,442; 4,082

Profit to shareholders: 16,494; 14,949; 17,545; 17,680; 20,054; 3,096






2016 year financial results reported March 21, 2017 (customers in millions; RMB millions or as shown):

2016; 2015; Change

Operating revenues: 352,285; 331,202; 6.4%

Service revenue: 309,644; 293,266; 5.6%

Mobile: 137,611; 124,503; 10.5%

Wireline: 172,033; 168,763; 1.9%

EBITDA: 95,139; 94,106; 1.1%

Net Profit: 18,004; 20,054; (10.2%)

EPS (RMB): 0.222; 0.248; (10.2%)

Adj net profit: 18,004; 16,117; 11.7%

Adj EPS: 0.222; 0.199; 11.7%

(NB: adj. net profit excludes one time gain in 2015 from national consolidation of tower assets.)

Subscribers (millions):

2016; 2015; Net additions

Mobile subscribers: 215.0; 197.9; 17.1

4G terminal users: 121.87; 58.46; 63.41

Wireline b/band subscribers: 123.12; 113.06; 10.06

FTTH: 105.99; 70.99; 35.00

Highlights for China Telecom in 2016

Capital expenditure was down 11.3% YoY to RMB 96.8 billions.

800 MHz frequencies extensively refarmed in 2016 for 4G network.

Declared 2016 dividend of HK 10.5 cents.

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