China Telecom Earnings Preview: Sluggish 3G/4G Adds, VAT To Hurt Profits

In its upcoming earnings release, we expect the company to report mid single-digit y-o-y growth in operating revenues on account of a steady increase in fixed broadband users and gain in high speed subscribers (3G and 4G). Notwithstanding a decline in total user base in the first six months, the third-largest Chinese wireless carrier actually gained about 15.5 million subscribers in full year 2014 compared to market leader China Mobile?s 144 million and second placed China Unicom?s 26.5 million ...