China Telecom's net profit in the first quarter of 2020 was 5.822 billion yuan, down 2.2% year-on-year. The number of 5G package users was about 16.61 million.

On April 23, China Telecom released the unaudited financial data of the Group for the first quarter of 2020. The report shows that in the first quarter, China Telecom's operating income was RMB 94.793 billion, down 1.4% from the same period last year; service revenue was RMB 92.137 billion, up 0.7% from the same period last year; EBITDA was RMB 30.161 billion, down 0.3% from the same period last year; China Telecom's shareholders' attributable profit was RMB 5.822 billion, down 2.2% from the same period last year.

The report shows that in the first quarter of 2020, China Telecom had about 337 million mobile users, of which about 16.61 million were 5G package users, a net increase of 12 million; total mobile Internet traffic increased by 37.4% year-on-year. The number of wired broadband users was about 152 million, and the revenue from smart home applications and services increased by 106.3% year-on-year.

China Telecom said that operating expenses in the first quarter of 2020 decreased by 0.9% compared with the same period last year, of which depreciation and amortization increased by 2.3% compared with the same period last year; network operation and support costs increased by 9.1% compared with the same period last year. The main reason for the increase was that the group continued to optimize and improve network capabilities and quality, support the rapid development of emerging businesses, and moderately increase resource investment.

The financial report shows that China Telecom's sales, general and administrative expenses in the first quarter of 2020 decreased by 14.7% compared with the same period last year. The main reason is that it continues to optimize the sales model, strengthen the precise management of marketing resources, and improve the efficiency of the use of marketing resources. At the same time, field marketing activities have been reduced due to the impact of the epidemic, and related costs have been saved. Labor costs increased by 7.0% compared with the same period last year, mainly due to moderately increased incentives for front-line employees and professional and technical personnel; other operating expenses decreased by 34.9% compared with the same period last year, mainly due to a decrease in mobile terminal sales.