China Mobile's 1H earnings rise 25.5%

17 Aug 2006

China Mobile posted a 25.5% jump in first half earnings as it grabbed market share from rival China Unicom. The world’s largest cellco reported a net profit of CNY30.2 billion (USD3.8 billion) in the first six months of 2006, compared to CNY24.04 billion a year earlier. Sales rose to CNY137 billion from CNY114.5 billion. Chief Executive Wang Jianzhou claimed his company had succeeded in raising revenue by offering a wider range of wireless services such as movie and video downloads and by targeting the more than 900 million people living in China’s rural areas. The mobile company added a record 13.1 million customers in the second quarter, aided by the regulator’s decision to allow it to cut rates and offer cheaper monthly packages for cell-phone users in Beijing from May. The company also reduced international roaming charges in the provinces of Sichuan and Zhejiang.