China Mobile 2Q profit jumps 29%

16 Aug 2007

The world’s largest cellco by subscribers, China Mobile, has reported that net profit surged 29% in the second quarter, on the back of a record number of new users, mostly from rural parts of the country. Net income rose to RMB20.3 billion (USD2.7 billion) from RMB15.8 billion a year earlier, according to calculations based on first-half earnings reported by the Beijing-based company today. The better than expected results were, in part, the result of the company’s focus on attracting new users from smaller towns and villages across the People’s Republic, areas which accounted for more than half of net additions in the first half. China Mobile added a record 31.2 million customers in the first six months to take its base to 332.3 million. Blended ARPU in the first half was RMB88 per month, unchanged from a year earlier. Sales rose 23.5% to RMB88.9 billion.

China, China Mobile