The three major operators are the main source of profit for China’s iron towers, and their revenues have consistently accounted for more than 90% of China’s total tower revenue.
文 | Daily Business Selection
China Tower’s net profit doubled in the first half of the year, and 5G base station demand will reach 100,000 by the end of the year
If the 5G mobile phone relies on the operator to build the base station, the carrier’s base station needs to be placed on the communication tower first. The Chinese iron tower is the construction side of the communication tower station. On August 7, China Railway Tower released its 2019 interim results with stable performance: revenue of 37.98 billion yuan, an increase of 7.5% over the same period of last year, and profit of 2.548 billion yuan, doubled from the same period of last year, reflecting the EBITDA rate of operating efficiency maintained. A high level of 58%.
The China Tower was originally established by Mobile, China Unicom and China Telecom in 2014. It landed in Hong Kong stocks in 2018 and became the largest IPO of the year with a fundraising scale of HK$54.3 billion to HK$68 billion. The three major operators are the main source of profit for China Tower. The income they generate (renting the communication tower to place 4G/5G base stations) has accounted for more than 90% of China’s total tower revenue, which was 97.9% in the first half of this year.
The performance of China Tower was stable this quarter, on the one hand because the company’s orders from 4G and 5G communication towers are increasing; on the other hand, the cost is being reduced with the depreciation expenses of the tower and the rental utilization rate is increasing. And drastically reduced. In addition, China Tower has also reached some resource sharing cooperation with the power industry, such as putting the communication station to …
Editor’s comment: Compared with China Mobile, whose net profit fell 14.6% in the first half of the year, the days of China Tower are much better. With the 5G cycle gradually opening, the Chinese Tower is in the 5G industry chain…
This article is from the paid section “Daily Business Featured” – August 8
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