CITIC Telecom profit up 2% in 2020

The company’s total dividends per share rose 5% YoY to 21 cents.

The CITIC Telecom International Holdings Ltd. reported its profit attributable to equity shareholders rose 2.1% YoY to $1.02b in 2020, despite challenges brought by the pandemic.

CITIC Telecom noted the profit attributable to equity shareholders would have increased to 4.4% if the investment property valuation is excluded.

The telecom firm also recorded a total revenue worth $7.97b, 7.9% up from the previous year. Its total revenue amounted $8.92b. Basic earnings per share was up 1.5% YoY to 27.9 cents.

“The group was engaged in efforts to continuously improve its service quality and drive up scientific research and new product development, while protecting the health of all of its employees and maintaining the stable operation of our telecommunications network platform, as well as ensuring the uninterrupted provision of our services,” CITIC Telecom chairman Xin Yue Jiang said. “The group reported stability and progress in its overall operations with continuous growth in profit.”

Total dividends per share for 2020 grew 5% YoY to 21 cents after the Board recommended a final dividend of 16 cents per share on top of the 2020 interim dividend of 5 cents per share.

The telecom company also reported its cash and bank deposits reached 1.51b as of 31 December, which is sufficient to cover its financial obligations and contractual capital commitments in the next 12 months.

Moreover, CITIC Telecom outlined its revenue from enterprise solutions increased 4.5% YoY to $3.22b, 5.4% YoY to $1.12b in internet services, and 39.8% YoY to $2.48b in international telecommunications services.

Meanwhile, its revenue dropped 23% to $957m in mobile services due to lockdown measures across different countries, affecting its roaming-related services. Despite this, CITIC Telecom managed to maintain its leading position in Macau with 44.4% market share in the city’s mobile market and 45.8% market share in 4G subscribers.

This year, CITIC Telecom plans to deploy the 5G SA network and provide full coverage of Macau by June 2021.