China Mobile revenues increase 10% as data earnings outstrip decline from OTT

15 Aug 2013

China Mobile, the largest wireless operator in the world by subscribers, has booked operating revenues of CNY303.10 billion (USD49.14 billion) for the first six months of 2013, representing a 10.4% increase compared to the corresponding period a year earlier. China Mobile identified data traffic, corporate customer services and its existing business as the main drivers for that revenue growth. EBITDA remained stable at CNY123.69 billion, although EBITDA margin dipped by four percentage points to 40.8%. Meanwhile, net profits for the period grew by 1.5% to CNY63.13 billion from CNY62.20 billion in H1 2012.

Whilst the cellco’s subscriber base has increased by 8.4% year-on-year to 740.15 million users, revenues from traditional voice services have flagged, dipping by 1.2% to CNY175.07 billion, as MOU dropped from 518 to 495. Nevertheless total voice traffic saw an increase of 3.7% to 2.14 trillion minutes. In the wireless data services segment, increases in revenue from internet traffic (CNY47.40 billion, up 62.2%) and application and information services (CNY27.01 billion, +10.0%) offset a decline in SMS and MMS earnings (CNY20.98 billion, -5.5%) caused by greater impact from over-the-top (OTT) products. Helping drive its data expansion, the cellco increased its portfolio of TD-SCDMA handsets to 595 and sold around 66 million TD-SCDMA devices in H1 2013, of which more than 90% were smartphones.

China, China Mobile