China Mobile books 5.1% profit growth in 2017

22 Mar 2018

China Mobile has recorded a 4.5% increase in annual operating revenue to CNY740.5 billion (USD117 billion) for 2017, with telecom service revenue growth achieving a six-year high of 7.2%, boosted by continuing growth in the mobile data segment. The operator noted that revenue from wireless data traffic accounted for more than half of its CNY668.4 billion service revenues for the first time, ‘demonstrating a fundamental change in revenue structure.’ EBITDA for the year reached CNY270.4 billion, up 5.4% year-on-year, whilst net profit grew by 5.1% to CNY114.3 billion.

Commenting on the results, China Mobile Chairman Shang Bing said: ‘In 2017, despite disruptive forces in the industry such as … significant changes in the competitive landscape of the industry, China Mobile maintained a clear focus on implementing our “Big Connectivity” strategy, anchored by the integrated development of the “four growth engines”. As a result, we have made outstanding achievements on multiple fronts, sustained favourable growth momentum and bolstered our position as a market leader. Our profitability is maintained at an industry-leading level benchmarked against other world-class operators, providing us with the solid foundation for future growth.’

Mobile’s 4G user base grew by 114 million during the year to 650 million and increasing 4G penetration in its user base to 73%. Handset data traffic grew by 121.3% y-o-y, with average monthly data user per customer reaching 1.76GB. In the fixed segment, the company added nearly 35 million net new users to bring its fixed broadband subscriber base to 109 million by the end of the year.

China, China Mobile