Operator: Welcome to the China Telecom Corporation's Interim Results Presentation.
Lisa Lai - IR Department: Ladies and gentlemen, good afternoon. I'm Lisa with the Investor Relations Department of China Telecom Corporation Limited. Here on behalf of the Company, I would like to welcome everyone to our 2011 Interim Results Presentation. The presentation will be conducted in Chinese with simultaneous interpretation. The Q&A session will be hosted by a moderator and also with consecutive interpretation. Please be reminded to switch your mobile phones off and set to vibration modes.
First of all, I would like to introduce the Company's management present today; Mr. Wang Xiaochu, Chairman and CEO; Mr. Yang Jie, President and COO; Madam Wu Andi, Executive Vice President and CFO; Mr. Sun Kangmin, Executive Vice President. Thank you for joining us today. I hope the presentation will be helpful to you.
Now, let's welcome our Chairman Wang to present the Company's performance in first half of 2012.
Wang Xiaochu - Chairman and CEO: Good afternoon, ladies and gentlemen. I'm very pleased to meet you all to introduce the Company’s performance in the first half of 2012. Today’s presentation will be divided into three sections. First, I will talk about the Company's overall performance.
In the first half the Company achieved the most remarkable result in our history. The development model of the Company has become more mature after years of strategic transformation and scientific development.
Leading to accelerated growth of our business; highlights of our development are; 3G has driven fast mobile expansion and our revenue growth exceeded the average level of the industry. The Company accelerated upgrade our fiber network to boost the broadband business and our wireline business turned it to positive. The Company is timely to acquire the mobile network to enhance the corporate value.
In the first half of the year, our operating revenues were RMB138 billion, up by 14.9%. Excluding revenue from mobile terminal sales, operating revenues were RMB126.6 billion, an increase of 11.3% over last year. EBITDA loss RMB48.8 billion, up by 7.5%, EBITDA margin was 48.5%. Net profit was RMB8.8 billion, down by 7.4% year-on-year.
As for the subscriber expansion, mobile subscriber increased by 17.71 million to (140 million) (sic) (144 million) of which 3G subscribers increased by 14.67 million to 50.96 million. The number of broadband subscribers increased by 6.89 million and reached at 83.7 million while the number of access lines in service was 167 million.
Let's move to KPI of the Company during the first half, the data show that those company achieved the satisfactory results for all indicators. We successfully expand their mobile subscriber scale while maintaining stable ARPU. The mobile ARPU was RMB52.4, while 3G ARPU was RMB74, suggesting our mobile business achieved effective scale development. Wireline business revenue rebounded to positive and registered 1.9% growth.
Notably, the Company's short-term profitability was under pressure due to the launch iPhone in March and appropriate increase of marketing initiative, nevertheless such effective investment will allow the Company to further expand high-end market and achieve breakthrough in mobile business, and thereby enhancing our long-term value.