China Telecom Corp, the country's biggest fixed-line carrier, posted a second-quarter profit that beat analysts' estimates as the introduction of Apple Inc's iPhone lured new users to its wireless unit. The stock climbed.
Net income fell 10 percent to 4.55 billion yuan ($716 million) from a restated 5.05 billion yuan a year earlier, the Beijing-based company said in a statement on Wednesday. That exceeded the 4.4 billion yuan median of seven analysts' estimates in a Bloomberg News survey.
China Telecom began offering subsidized iPhone sales on March 9, giving it a new weapon in its battle for smartphone subscribers with larger rival China Mobile Ltd and boosting usage. China Telecom expects the Apple Inc device will enhance its long-term growth with "short-term pressure" on profit margins as it accounts for subsidies on the device up front, instead of spreading them over the life of a service contract.
China Daily-Agencies
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