China Mobile books 3.1% profit growth

24 Oct 2016

China Mobile, the world’s largest cellco by subscribers, has booked a 4.3% year-on-year increase in operating revenue for the nine months to end-September 2016. The operator registered operating revenue of CNY542.7 billion (USD80.22 billion) for the period, up from CNY520.2 billion a year earlier, of which CNY481.2 billion was attributed to telecoms services (up 5.4% y-o-y) whilst CNY61.5 billion was attributed to product sales, a 3.5% reduction compared to 2015. EBITDA for the nine months edged up by 1.3% to CNY200.4 billion, although EBITDA margin dipped from 38.0% to 36.9%. Net profit, meanwhile, grew by 3.1% y-o-y to CNY88.1 billion.

In operational terms, the provider claimed a total of 481 million 4G users at the end of September 2016, compared to 429 million three months earlier. The expansion came at the cost of its 3G user base, however, which shrank from 133 million to 119 million over the same period. ARPU for mobile services continued its downward trend and dipped from CNY61.5 to CNY60.0. In the fixed segment China Mobile counted a total of 74.24 million broadband users, a net increase of 19.21 million in the three months to end-September 2016.

China, China Mobile