Friday, 22 September 2017

Taxing times: Chinese telcos' Q1 profits down by €300m

By Mary Lennighan, Total Telecom
Friday 01 May 15

As China's operators vie with one another for 4G customers, its handset makers face strong overseas competition.

China's telecoms operators saw their collective net profits fall by almost €300 million in the first quarter of this year as changes to the government's taxation policy took their toll. Together the big three generated net profits of just over CNY32 billion (€4.62 billion) in Q1, CNY2.05 billion (€296 million based on current exchange rates) less than in the same period a year ago. China Telecom was the last of the three state-owned operators to report Q1 financials on Wednesday. It posted a 9% decline in net profit to CNY5.05 billion (€725 million), in no small part due to the replacement of business tax with value…

China's telecoms operators saw their collective net profits fall by almost €300 million in the first quarter of this year as changes to the government's taxation policy took their toll. Together the big three generated net profits of just over CNY32 billion (€4.62 billion) in Q1, CNY2.05 billion (€296 million based on current exchange rates) less than in the same period a year ago. China Telecom was the last of the three state-owned operators to report Q1 financials on Wednesday. It posted a 9% decline in net profit to CNY5.05 billion (€725 million), in no small part due to the replacement of business tax with value…

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