China Netcom Announces Results for First Three Quarters of 2008
Innovative businesses continued rapid growth Financial results and business highlights: — The number of the Company’s broadband subscribers was 24.859 million, or a net addition of 5.091 million over the end of last year, representing a year-on-year growth of 35.4% — As of September 30, 2008, the number of active subscribers of “CNC MAX” Client was over 3.80 million — Revenue of the Company was RMB60.679 billion, including upfront connection fees of RMB710 million. Excluding upfront connection fees, the revenue of the Company was RMB59.969 billion, representing a year-on-year decrease of 1.80%
China Netcom Group Corporation (Hong Kong) Limited (”China Netcom” or the “Company”), a leading broadband and fixed-line communications operator in China, announces its unaudited results for the first three quarters of 2008. In the third quarter of 2008, the innovative businesses of the Company continued to grow rapidly and the proportion of its contribution in the Company’s total revenue increased, helping to offset part of the decline in the revenue in the traditional fixed-line businesses amid the mobile-substitution. Broadband services are still the major driver of the growth in the Company’s innovative businesses.
For the nine months ended September 30, 2008 (”the period under review” or “the period”), the revenue of the Company was RMB60.679 billion, including upfront connection fees of RMB710 million. Excluding the upfront connection fees, the revenue of the Company was RMB59.969 billion, representing a decrease of 1.80% from the same period of 2007. (All figures in this document exclude upfront connection fees unless otherwise stated.)
In the period under review, there was robust demand in the domestic market for broadband services. The Company seized the business opportunity by actively implementing the “Super Broadband Plan”. As of September 30, 2008, the number of the Company’s broadband subscribers was 24.859 million, representing a net addition of 5.091 million when compared to the figure as of the end of last year. Although the growth of the Company’s broadband subscriber base in the third quarter of 2008 was affected by the Beijing Olympics to a certain extent, a rapid growth momentum is maintained and a year-on-year growth of 35.4% was recorded.
Leveraging the rapidly growing subscriber base, the Company actively increased network connection speed and placed greater efforts in the creation and marketing of broadband content and applications services. In the third quarter of 2008, the trend of broadband subscribers moving to broadband with higher connection speed continued. The broadband content and services were continuously enriched, and the scope of applications services such as video monitoring and network information security services continued to expand. The number of active subscribers of “CNC MAX” Client was over 3,800 thousand as of 30 September 2008 because of the enriched content and increased efforts to satisfy the subscribers’ needs and demands.
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