China Tower profit surge in 1H fuelled by 5G

China Tower profit surge in 1H fuelled by 5G

China Tower Corporation, which claims to be the world’s largest telecommunications infrastructure service provider, announced that during H1 2021 its net profit grew 16.1% year-on-year to CNY3.45 billion ($532.6 million) while operating revenue increased 7.2% to CNY42.67 billion.

The Chinese telecom tower infrastructure service provider said in a press release that its EBITDA amounted to CNY 31.18 billion, up also 7.2 %, with an EBITDA margin of 73.1 % at 30 June 2021.

The state-owned company has stepped up network investments in 2020, working with the country’s mobile operators to build 501,000 5G base stations and increased profit as revenue increased across all three business units.

"We completed the infrastructure of approximately 256,000 5G projects in the first half of 2021, of which 97% were completed by utilizing existing resources. This underscored our strength in sharing resources to support the large-scale construction of 5G networks cost-effectively," said the release.

"At the same time, the impact of 5G on improving our revenue has begun to show its effects, with 5G becoming the key growth driver of our TSP business. As of the end of June 2021, we were managing a total of 2.035 million tower sites, a net cumulative addition of 12,000 sites from the end of 2020," it said.

During the same period, China Tower gained 53,000 new TSP (telecom service providers) tenants, bringing the total number to 3.228 million. Our TSP tenancy ratio also increased from 1.57 at the end of 2020 to 1.59.