(Yicai Global) Oct. 28 -- China Telecom's net profit fell 3.4 percent in the nine months ended September because of a steep drop in investment income and a non-recurring gain a year earlier.

It earned CNY18.4 billion (USD2.6 billion) in the period, the Beijing-based company said in an earnings report today. Revenue dipped 0.8 percent to CNY283 billion.

The benefit the state-owned carrier derived from the China Tower listing a year earlier was a major cause of the earnings decline along with a nearly 50 percent drop in investment income to CNY964 million, it said.

China Telecom shares [HKG:0728] lost almost 0.9 percent to HKD3.45 (44 US cents), trimming its market value to HKD279.2 billion (USD35.6 billion).

Editor: Ben Armour