What To Watch As China Telecom Reports 2017 Results
China Telecom (NYSE:CHA), the smallest of the three Chinese wireless players, is expected to publish its full-year 2017 results over the coming days, reporting on a year that saw the company post stronger wireless subscriber additions, driven by its expanding high-speed subscriber base. We have created an interactive dashboard analysis, which outlines how the company’s major business segments such as wireless, landline and broadband are expected to perform over the year. You can modify the charts with blue dots to arrive at your own estimates for EPS and revenues.
China Telecom’s subscriber base should grow in the quarter, driven largely by 4G additions. Further, the carrier’s margins should benefit from lower equipment subsidy costs in addition to the top line growth.
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Meanwhile, the carrier’s Landline business will likely continue to see declines, driven by pressure on both its landline subscriber base and landline ARPU.
On the other hand, China Telecom’s Broadband user base should continue to expand, driven by improving fiber-to-the-home (FTTH) penetration. FTTH penetration stood at 93% in October 2017, so going forward there may be limited upside. Improvement in margins and subscribers should offset some ARPU pressure for the Broadband segment.
We expect China Telecom’s revenues to grow to about $55 billion for the year, with EPS also seeing some modest year-over-year growth. You can see our detailed forecasts on our interactive model for the carrier.
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Like our charts? Explore example interactive dashboards and create your own.