China Telecom published its annual results for 2012, stating that its total operating revenue reached CNY283.073 billion, a year-on-year increase of 15.5%; but its profit attributable to shareholders was CNY14.925 billion, a year-on-year decrease of 9.5%.

The company's basic net profit per share was CNY0.18.

Its operating revenue excluding mobile terminal sales was CNY258.316 billion during the reporting period, a year-on-year increase of 11.8%. Its earnings before interest, taxes, depreciation and amortization, excluding rental fee, were CNY96.387 billion, a year-on-year increase of 2.1%; and the related EBITDA rate was 37%. Its earnings before interest, taxes, depreciation and amortization, including rental fee, were CNY70.841 billion, a year-on-year decrease of 6%; and the related EBITDA rate was 27.4%.

At the same time, the company reported operating costs of CNY261.887 billion, an increase of 18.5% compared with 2011. Its capital expenditure was CNY53.7 billion and its free cash flow was CNY12.4 billion.

China Telecom said that the introduction of Apple's iPhone led to the increase in marketing costs. This move will help enhance its revenue from the high-end user market, though it may bring short-term profit pressure.

In addition, China Telecom decided to advise a dividend at the same level of 2011, which was HKD0.085 per share.