China Mo­bile re­ports 3.5% profit rise

China Daily (Hong Kong) - - BUSINESS -

HONG KONG — China Mo­bile Com­mu­ni­ca­tions Corp re­ported a 3.5 per­cent rise in first-half net profit af­ter adding new sub­scribers.

The coun­try’s top tele­com op­er­a­tor plans to start 5G field tests later this year.

But to­gether with China United Net­work Com­mu­ni­ca­tions Group Co Ltd and China Tele­com Corp Ltd, China Mo­bile con­tin­ues to ben­e­fit from cus­tomers up­grad­ing to 4G and from mo­bile data de­mand.

In March, the com­pany warned that a gov­ern­ment call for tele­com op­er­a­tors to lower prices was likely to re­duce its op­er­at­ing prof­its and rev­enues by around 7 bil­lion yuan ($1.05 bil­lion) this year.

Net profit for the six months to June reached 62.7 bil­lion yuan, up from 60.6 bil­lion yuan for the same pe­riod in 2016.

Op­er­at­ing rev­enue jumped 5 per­cent to 388.9 bil­lion yuan, up from 370.4 bil­lion yuan a year ear­lier.

“This year, we will com­mence field tests for 5G and steadily drive the busi­ness for­ward,” the com­pany re­ported on Thurs­day in a state­ment. “This takes into ac­count the ma­tu­rity of the 5G stan­dard and the re­lated busi­ness model.”

China Mo­bile an­nounced that sub­scribers of its 4G mo­bile net­work — the world’s largest — rose to 594 mil­lion af­ter the ad­di­tion of 58.62 mil­lion cus­tomers.

It said it was on track to achieve its tar­get of a net in­crease of 100 mil­lion 4G users this year.

The com­pany an­nounced an in­terim div­i­dend of HK$1.623 (23 US cents) per share and spe­cial div­i­dend of HK$3.20 per share to cel­e­brate the 20th an­niver­sary of its Hong Kong list­ing.

China Mo­bile is also mak­ing big in­vest­ments into the so-called in­ter­net of things ini­tia­tive, as the gov­ern­ment pushes for the strat­egy.

Shares of China Mo­bile, which listed in Hong Kong two decades ago, were down 0.5 per­cent ahead of the an­nounce­ment. The stock has edged up around 2 per­cent so far this year, lag­ging a more than 20 per­cent gain for the bench­mark Hang Seng In­dex.

net profit of China Mo­bile Com­mu­ni­ca­tions Corp in the first half of 2017

AN XIN / FOR CHINA DAILY

The ex­hi­bi­tion stand of China Mo­bile Com­mu­ni­ca­tions Corp on the China (Nan­jing) In­ter­na­tional Soft­ware Prod­uct and In­for­ma­tion Ser­vice Trade Fair.

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