China Tower H1 2026 profit jumps 30% despite revenue decline

China Tower Corp. posted a 30% year-over-year increase in first-half 2026 net profit, despite a 5% decline in revenue, according to preliminary financial slides reviewed Monday.

The state-backed telecom infrastructure operator attributed the profit growth to aggressive cost-cutting measures and operational efficiencies, which offset weaker revenue trends amid a competitive market environment. Total revenue for the six months ended June 30, 2026, fell to 42.3 billion yuan from 44.5 billion yuan in the same period a year earlier.

Operating expenses declined 8% year-over-year, reflecting reductions in capital expenditures and personnel costs. The company did not provide detailed segment breakdowns in the slides, though it noted stable contributions from its core tower leasing business.

China Tower, majority-owned by state-owned enterprises including China Mobile, China Telecom, and China Unicom, operates the world’s largest mobile tower network. The company has prioritized margin improvement over top-line growth in recent quarters, aligning with broader industry trends toward operational discipline amid slowing telecom sector expansion.

Analysts tracking the company’s performance highlighted the resilience of its business model, which benefits from long-term leasing contracts with telecom operators. The profit surge follows a 22% increase in full-year 2025 net income, underscoring a multi-quarter trend of profitability improvement despite revenue headwinds.

The slides did not include forward guidance or detailed capital allocation plans. China Tower’s shares, listed in Hong Kong, were unchanged in early trading Monday, reflecting a market that had already priced in the results.