EQS-News / 07/08/2019 / 12:39 UTC+8
*Press Release
?For Immediate Release?*
*China Tower's Profit Doubled to RMB2,548 Million
in the First Half of 2019*
(7 August 2019, Hong Kong) The world's largest telecommunications
infrastructure service provider *China Tower Corporation Limited* ("China
Tower", or the "Company") (Stock Code: 0788.HK) is pleased to announce its
interim results for the six months ended 30 June 2019.
*Performance Highlights*
+----------------------------+-----------+----------+----------+
|*RMB million* |*Six months ended 30 June 2019* |
+----------------------------+-----------+----------+----------+
| |*201**9* |2018 |*Change* |
+----------------------------+-----------+----------+----------+
|Operating revenue |*37,980* |35,335 |7.5% |
+----------------------------+-----------+----------+----------+
|EBITDA |*27,815* |20,907 |33.0% |
+----------------------------+-----------+----------+----------+
|Profit attributable to the |*2,548* |1,210 |110.6% |
|Company | | | |
+----------------------------+-----------+----------+----------+
|Earnings per share |*0.0145* |0.0094 |54.3% |
+----------------------------+-----------+----------+----------+
|Key operating data |
+----------------------------+-----------+----------+----------+
|Number of tower sites |*1,954* |1,879 |4.0% |
|(thousand) | | | |
+----------------------------+-----------+----------+----------+
|Number of tower tenants |*3,082* |2,758 |11.7% |
|(thousand) | | | |
+----------------------------+-----------+----------+----------+
|Tower tenancy ratio (tower |*1.58* |1.47 |7.5% |
|tenants / tower sites) | | | |
+----------------------------+-----------+----------+----------+
We maintained stable and healthy growth in the first half of 2019, recording
an operating revenue of RMB37,980 million, up by 7.5% over the same period
last year. Our operating efficiency enhanced steadily, with EBITDA reaching
RMB27,815 million, EBITDA margin[1] was 73.2%. On a comparable basis[2], the
EBITDA margin maintained at a satisfactory level of 58.0%. Net profit
reached RMB2,548 million, up by 110.6% over the same period last year,
demonstrating our improving profitability.
Our cash flow continued to improve steadily. In the first half of 2019, net
cash generated from operating activities amounted to RMB20,798 million. Our
capital expenditures amounted to RMB8,906 million, while our free cash flow
reached RMB11,892 million. As of 30 June 2019, the Company's total assets
reached RMB336,328 million and interest-bearing liabilities amounted to
RMB120,536 million with a gearing ratio[3] of 39.4%, representing a stable
and controllable debt leveraging level.
As of 30 June 2019, we managed a total of 1,954 thousand tower sites[4],
representing an increase of 4.0% over the same period last year. The total
number of tower tenants4 increased by 11.8% over the same period last year
to 3,082 thousand. Average tenants per tower site4 increased to 1.58 from
1.55 at the end of 2018, showing further improvement in the level of site
co-location.
*Sharing Strategy Reinforces our Strong Leadership in the TSP Market*
The demand for in-depth 4G network coverage and the scaling of 5G
infrastructure created plenty of opportunities in the market. In view of
this, we have adopted an innovative construction model, continued to
optimize sharing of existing resources while stepping up our efforts to
acquire and utilize social resources, and promoted the implementation of
integrated wireless communications coverage solutions. The measures that we
have taken have met substantial demand from TSPs, reduced construction costs
and continued to enhance our core competitiveness. In the first half of
2019, more than 80% of new tenancy demand from the three TSPs was satisfied
through co-location. We achieved a net addition of 94 thousand TSP tower
tenants, bringing the total to 2,931 thousand TSP tower tenants as of the
end of June 2019. The tower business recorded revenue of RMB35,808 million,
representing an increase of 5.1% over the same period last year.
With regard to the DAS business, we have striven to deploy diverse
construction solutions to satisfy demand from TSPs and boosted the growth of
our DAS business. By the end of June 2019, we had covered buildings with a
cumulative area of approximately 1,910 million square meters, with an
additional coverage of approximately 450 million square meters. We had also
covered subways and high-speed railways with cumulative length of
approximately 3,110 kilometers and 18,218 kilometers respectively, with
additional coverage of approximately 223 kilometers and 527 kilometers
respectively. Our DAS revenue for the first half of 2019 amounted to
RMB1,254 million, representing an increase of 52.2% over the same period
last year.
*Focus on Key Sectors and strive to develop the Two Wings into New Drivers
to Growth*
To strengthen our multi-stream revenue structure to achieve business growth,
we set up Smart Tower Corporation Limited* (??????????) and Energy Tower
Corporation Limited* (????????) in June 2019 to accelerate the development
of our Two Wings businesses.
The TSSAI business maintained fast and healthy growth. In response to the
booming demand for the application of informatization across society, we
leveraged sharing of sites and social resources to broaden our service
sectors and scope, from site resource services to higher value-added
integrated information services, and launched three brands, Smart Sharing,
Smart Connection and Smart Monitoring (????????). We focused on developing
key sectors and key customers, and made progress in launching pilot projects
in areas such as ecological and environmental conservation, emergency
response and satellite positioning in China to drive high-quality growth of
TSSAI business. In the first half of 2019, the TSSAI business generated
revenue of RMB843 million, up by 125.4% over the same period last year.
*Implementation of the Restricted Stock Incentive Scheme*
In the first half of 2019, we implemented the restricted share incentive
scheme and granted a total of approximately 1.21 billion H shares to our
core management team and key technical personnel for the first time. The
long-term effective incentive and restraint mechanism aligns the interests
of shareholders, the Company and the employees as a whole. The Company has
remained committed to establishing sound governance systems and placed great
emphasis on risk prevention and management to ensure sound corporate
governance and safeguard the healthy and sustainable development of the
Company.
"Tomorrow marks the first anniversary of China Tower's listing and this year
is also the first year of 5G development. Following the issue of 5G
commercial licences, the mobile communications industry is developing
towards 5G, which is creating more demand and valuable opportunities for the
Company. Looking ahead, we will ride on the back of the development in areas
such as in-depth 4G network coverage, 5G and Internet of Things to
accelerate our progress towards high-quality, efficient and sustainable
development." Said *the Chairman, Mr. Tong Jilu*.
End
*About China Tower:*
China Tower Corporation Limited ("China Tower") incorporated on 15 July
2014, it has developed into the world's largest telecommunications tower
infrastructure service provider. China Tower was listed on the Main Board of
Hong Kong Stock Exchange on 8 August 2018 (Stock Code: 0788.HK), raised
approximately HK$58.8 billion. The Company has three main business segments:
the tower and indoor Distributed Antenna System (DAS) businesses mainly uses
sites resources provide service to telecommunications service providers
(TSPs). The Trans-sector Site Application and Information (TSSAI) business
segment mainly uses the sites dispersed nationwide and provide tower site
resource and data information services to different industries. China Tower
adheres to the "sharing" philosophy for business development, it promotes
site co-location and provides a wide range of services to fulfill the
specific needs of its customers. As of the end of June 2019, the company's
total assets amounted to RMB336.328 billion. China Tower managed 1.954
million sites across 31 provinces, municipalities and autonomous regions in
the PRC, and served over 3.082 million tenants with tenancy ratio of 1.58.
*Investor and Media Enquiries*
PRChina Limited
David Shiu / Ray Sun / Aggie Fang
T:(852) 2522 1838 / (852) 2522 1368
E:dshiu@prchina.com.hk / rsun@prchina.com.hk /
afang@prchina.com.hk
[1] ote: EBITDA margin is calculated by dividing EBITDA by operating
revenue, and multiplying the resulting value
by 100%.
[2] ote: The comparable basis represents the comparison of certain
financial information in the first half of 2019 and corresponding financial
information in the same period of 2018 excluding the impact of the adoption
of IFRS 16.
[3] ote: Gearing ratio is calculated as net debt divided by the sum of
total equity and net debt, then multiplied by 100%. Net debt is calculated
as the amount of interest-bearing liabilities minus the amount of cash and
cash equivalents.
[4] ote: DAS business was not taken into consideration when counting the
number of tower sites, number of tower tenants and average tenants per tower
site.
Document: http://n.eqs.com/c/fncls.ssp?u=PAEGXNOYJG [1]
Document title: China Tower's Profit Doubled to RMB2,548 Million in the
First Half of 2019
07/08/2019 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=cb8a4ea437f61588187ecd726cf5966d&application_id=853197&site_id=vwd&application_name=news
(END) Dow Jones Newswires
August 07, 2019 00:39 ET (04:39 GMT)
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