The telecommunications business volume is steadily increasing, and the income from emerging businesses maintains double-digit growth.
The Ministry of Industry and Information Technology released the economic operation of the communications industry in the first half of 2024: the telecommunications business volume is steadily increasing, and the income from emerging businesses maintains double-digit growth. The construction of new infrastructures such as 5G, gigabit optical network, and Internet of Things is making orderly progress. The number of network-connected users is steadily increasing, and the access traffic of mobile internet maintains fast growth momentum.
In the era of digital economy and artificial intelligence, operators are breaking through the boundaries of traditional communication businesses and transforming into world-class technology service companies with global competitiveness.
From the revenue structure of the three major operators, digital business sectors including cloud computing, big data, Internet of Things, IDC, and cybersecurity have become the main engines of revenue growth.
In the era of digital economy and artificial intelligence, operators have taken on new missions and are expected to open up new development space.
Zhongtai Securities published an article stating that the three major operators achieved positive revenue growth in the first half of 2024, with net profits of 80.2 billion yuan, 21.8 billion yuan, and 6 billion yuan, respectively, a year-on-year growth of 5.3%, 8.2%, and 10.9%, with profit growth exceeding revenue growth.
In terms of income structure, in addition to traditional personal and household businesses being relatively stable, the income from emerging businesses has also begun to exert efforts in the first half of the year, accounting for about 1/4 of the telecommunications business income, further optimizing the income structure.
In the future, with the decrease in capital expenditure and the extension of depreciation periods by telecom operators, dividend payouts are expected to further increase.
Leading companies in the telecommunications sector:
China Mobile (00941), China Telecom (00728), China United Network Communications (00762)