China Mobile books 7.1% revenue growth

12 Aug 2016

China Mobile, the world’s largest mobile provider by subscribers, has reported operating revenue of CNY370.35 billion (USD55.80 billion) for the first half of 2016, up from CNY345.69 billion in the corresponding period of 2015 (restated to include the turnover from sister company China TieTong, which was acquired by China Mobile in December 2015). EBITDA for the six-month period was up 2.9% year-on-year to CNY134.35 billion, with a margin of 36.3%. Net profit for H1 2016 was CNY60.57 billion, a 5.6% improvement y-o-y. Mobile attributed the growth to its continuing success in the 4G sector, counting a total of 428.541 million LTE users at the end of June 2016 – compared to 189.662 million twelve months earlier – and reporting a 39.7% y-o-y increase in wireless data traffic revenue to CNY140.94 billion, equivalent to 43.3% of the cellco’s service revenue. China Mobile’s 4G offerings were bolstered in H1 2016 by the operator’s ongoing network expansion and improvement programme, which saw the total number of sites increase to 1.32 million, whilst carrier aggregation (CA) technology was available in more than 300 cities, and voice-over-LTE (VoLTE) was launched in a little under 300 cities.

China Mobile’s total wireless user base was 837.038 million at 30 June 2016, of which 132.865 million were 3G subscribers, compared to 817.196 million and 214.815 million respectively in June 2015. The operator also claimed a total of 65.836 million fixed broadband customers, up from 60.585 million in March 2016.

China, China Mobile