On the evening of April 20, China Telecom released its first-quarter financial report. Subsequently, China Mobile and China Unicom also disclosed the first quarter financial data. In terms of financial data, in the first quarter, China Telecom's revenue was 118.576 billion yuan, an increase of 11.5% over the same period last year, and the net profit reached 7.223 billion yuan, an increase of 12.1% over the same period last year; China Mobile's revenue was 227.3 billion yuan, an increase of 14.6% year-on-year; net profit reached 25.6 billion yuan, an increase of 6.5% year-on-year; China Unicom's first-quarter revenue was 89.022 billion yuan, an increase of 8.2% over the same period last year, and the net profit reached 2.03 billion yuan, an increase of 20% year-on-year. Overall, the data of the three major operators in the first quarter achieved "double increase in profits", and some data also reached double-digit growth, which released a positive signal for the development of operators in 2022.
The number of 5G package users exceeded 800 million
"Big connection" drives the development of fixed networks
In terms of mobile communication services, in the first quarter of 2022, China Telecom's mobile communication service revenue was RMB49.014 billion, an increase of 5.0% year-on-year, the net increase of mobile users was 7.11 million to about 380 million, the net increase of 5G package users was 22.95 million to about 211 million, with a penetration rate of 55.5%, and the mobile user ARPU was RMB45.1. In terms of fixed network and smart home services, China Telecom's fixed network and smart home service revenue reached RMB29.645 billion in the first quarter, an increase of 4.9% year-on-year, cable broadband subscribers reached 173 million households, smart home income increased by 22.5% year-on-year, driving broadband integrated ARPU to RMB46.7, and the value contribution of smart homes continued to increase.
China Mobile is still far ahead in the first quarter, as of March 31, 2022, the total number of Customers of China Mobile is about 967 million, of which the total number of 5G package customers reached 467 million, and the total number of 5G network customers reached 233 million, and the customer structure continued to be optimized. In the first quarter, the traffic business maintained a good growth trend, with mobile Internet traffic increasing by 20.7% year-on-year, mobile Internet DOU reaching 13.0GB; the total number of call minutes was 708.6 billion minutes, down 1.1% year-on-year; the use of SMS was 224.3 billion, an increase of 6.2% year-on-year; and mobile ARPU was RMB47.5, an increase of 0.3% year-on-year. In the first quarter, the total number of China Mobile cable broadband customers reached 249 million, a net increase of 8.99 million in the quarter, of which 225 million home broadband customers, a net increase of 7.27 million in the quarter; in the first quarter, the wired broadband ARPU was RMB32.4, an increase of 1.8% year-on-year, and the home broadband integrated ARPU was RMB37.8, an increase of 5.3% year-on-year.
In February 2022, China Unicom broke the tradition of listing for 20 years, systematically optimized the monthly voluntary information disclosure indicators for the first time, and divided the data into four directions: "ubiquitous smart connection", "innovative application", "smart service" and "scientific and technological innovation". In the first quarter, the scale of China Unicom's "big connection" users reached a new high, reaching a total of 779 million households, (the cumulative arrival of "big connection" users = the cumulative arrival of mobile outbound users + the cumulative arrival of fixed-line broadband users + the cumulative arrival of fixed-line local telephone users + the cumulative arrival of Internet of Things terminal connections + the cumulative arrival of network private line users). The number of 5G package users reached 171 million, driving China Unicom's mobile service revenue to RMB41.986 billion, up 2.2% year-on-year.
New business continues to "take the lead"
The revenue of the digital industry has reached a new high
In recent years, new business development has always been an important starting point for the transformation and development of the three major operators. In terms of industrial digitalization, China Telecom vigorously promotes the integration and development of the digital economy and the real economy, gives full play to the market competitiveness of Tianyi Cloud, promotes customers to accelerate the "cloud with digital intelligence", enriches and innovates the 5G customized network business model, creates comprehensive and intelligent scenario-based solutions, and actively empowers the transformation and upgrading of traditional industries; gives full play to the leading advantages of forward-looking resource layout, accelerates the construction of computing power networks, and builds intelligent and comprehensive digital information infrastructure. In the first quarter of 2022, the digital business of China's telecom industry accelerated its growth, with revenue reaching RMB29.414 billion, an increase of 23.2% year-on-year.
China Mobile adheres to steady progress, adheres to innovation-driven, continues to deepen scale-based value management, promotes CHBN omnidirectional force and integrated development, builds a new information service system of "connection + computing power + capacity", accelerates the construction of a world-class "power building", and the main operating performance indicators continue the good growth momentum of the previous year. In terms of the government and enterprise market, China Mobile has promoted the scale expansion of "network + cloud + DICT" as a whole, built the differentiated advantages of mobile cloud, comprehensively enhanced the market competitiveness of the information service industry, promoted the replication of high-frequency and high-value industry product scale, and maintained a strong momentum of revenue increase. In the first quarter, DICT revenue was RMB23.7 billion, up 50.9% year-on-year.
China Unicom actively promotes the upgrading of new information consumption, focuses on personal and family consumption, and creates consumer applications such as Unicom cloud disks, video ringtones, Unicom assistants, and 5G messages; the government and enterprise markets, promote the deep integration of "government, industry, academia, research and application", deeply implement the "Sail" action plan for 5G applications, and help the digital transformation and intelligent upgrading of thousands of industries with new products, new formats and new models of 5G applications, and continue to create and iterate 5G industrial Internet, smart city, medical, education, Internet of Vehicles and other industry solutions. Accelerate the transformation of 5G applications from "model room" to "commercial housing". The number of virtual private network service customers in the 5G industry reached 1,421. In addition, China Unicom Cloud accelerated its development, achieving revenue of RMB9.12 billion, an increase of 114% year-on-year; IDC achieved revenue of RMB6.231 billion, an increase of 14.5% year-on-year; driven by the good growth of the computing network business, fixed network service revenue increased by 19.1% year-on-year to RMB38.463 billion, with revenue growth reaching a new high in recent years.
The proportion of multiple costs has gradually increased
Seize the period of important strategic opportunities
It is worth noting that China Telecom mentioned in the report that the research and development expenses were 1.118 billion yuan, an increase of 56.8% over the same period last year, mainly due to strengthening scientific and technological innovation, increasing the introduction of high-tech talents, and strengthening the research and development of core technologies such as cloud-network integration and 5G. In the first quarter, China Telecom's operating costs were RMB81.78 billion, an increase of 12.1% over the same period last year, mainly due to the continuous optimization of network quality, enhancing user perception, actively supporting the development of 5G and industrial digital business, moderately increasing capacity building investment, and at the same time, the sales volume of mobile terminals such as 5G mobile phones increased; sales expenses were RMB14.239 billion, an increase of 12.2% over the same period last year, mainly due to the investment of necessary marketing resources during the 5G development opportunity period.
China Unicom also mentioned that it is continuing to promote the reform of the incentive mechanism, strengthen the linkage between incentives and performance, increase the introduction of innovative talents, enhance the new momentum of innovation and development, and employee compensation and welfare expenses increased by 11.0% over the same period last year. In the first quarter, China Unicom's network, operating and support costs increased by 7.5% over the same period last year, mainly due to the increase in the cost of housing equipment use, repair, operation and maintenance costs and energy consumption costs during the period due to the expansion of network and operating scale. China Unicom appropriately increased sales expenses to enhance market attractiveness, with sales expenses rising by 3.8% over the same period last year. Other operating and administrative expenses increased by 22.2% over the same period last year, mainly from the increase in ICT costs and technical support expenditures, which helped industrial Internet revenue increase by 34.8% over the same period last year, and promoted the improvement of innovative business capabilities and potential.
Looking forward to the future, China Telecom proposed to seize the current important strategic opportunity period, continue to take the A-share listing as an opportunity, continue to push the "cloud to digital transfer" strategy to the depth, take the customer as the center, and launch more high-quality and efficient integrated intelligent information products and services; strengthen the research and development of key core areas, build an intelligent and comprehensive digital information infrastructure, accelerate the construction of the cloud network base in the era of computing power; go all out to promote high-quality development, accelerate the progress towards service-oriented, technology-based and secure enterprises, and continue to serve shareholders, customers, Society creates value.
China Mobile also said that with the large-scale production of 5G, network operation and support expenditure will have rapid growth, and the expansion of information service businesses such as DICT will also trigger a strong demand for transformation and upgrading resources. The company will continue to promote the increase of open source revenue, cost reduction and efficiency increase, do a good job in the accurate allocation of resources with "guaranteed, pressure and control", comprehensively promote the key deployments, achieve good growth in main business income and net profit throughout the year, maintain a good level of profitability, and continue to create value for investors.
2022 is a key year for the implementation of China Unicom's new strategy. China Unicom pointed out that it will continue to fully implement the new development concept, serve to build a new development pattern, promote high-quality development, focus on the construction of "network power, digital China, and intelligent society", take the implementation of the "1+8+2" strategic planning system as the main line of work, focus on the five main businesses, stabilize growth, optimize the network, grasp reform, improve capabilities, strengthen coordination, prevent risks, and create greater value for shareholders, customers and society.
End
Author: Wang Yurong
Editor-in-Charge/Layout: Fan Fan
Review: Shen Qing
Producer: Liu Qicheng
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