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China Telecom net income growth slowest in six quarters
August 27, 2014 / 5:00 AM / 3 years ago

China Telecom net income growth slowest in six quarters

BEIJING, Aug 27 (Reuters) - China Telecom posted its slowest quarter of net income growth in six quarters and decided not to pay an interim dividend as uncertainty around 4G licences and regulatory policy bit into its bottom line.

The smallest of China’s three state-owned wireless carriers saw second-quarter net income rise 5.7 percent from the previous year to 5.8 billion yuan ($943 million), according to Reuters calculations based on the firm’s interim earnings.

Revenues for the second quarter rose 3.9 percent to 82.8 billion yuan, its slowest revenue growth since 2010.

China Telecom chairman and chief executive Wang Xiaochu said in the earnings release the company “faced unprecedented uncertainty” due to factors including 4G regulatory policy and value-added tax reform.

China Telecom shares were up 2.54 percent on Wednesday morning, versus a 0.03 percent drop in the Hang Seng Index . (1 US dollar = 6.1475 Chinese yuan) (Reporting by Paul Carsten; Editing by Stephen Coates)

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