Home / Business / Technology & Telecom Tools: Save | Print | E-mail | Most Read | Comment
Biggest telco calls in lower Q2 profit
Adjust font size:

China Mobile yesterday reported its first drop in net profit since 1999 because of rising competition from rivals China Telecom and China Unicom and its weak 3G performance.

The world's biggest telco posted a net profit of 30.1 billion yuan (US$4.42 billion) in the second quarter, compared with 30.6 billion yuan a year ago.

Analysts had previously forecast a net profit of 31.4 billion yuan for the period.

"A macro-economic slowdown, a rising mobile communications penetration rate and changes in the competitive environment of the telecommunications industry in China have posed challenges to the development of the business in the first half," China Mobile said in a statement.

In the first six months, China Mobile posted a net profit of 55.3 billion yuan, a 1.4 percent annual growth. Its revenue totaled 212.9 billion yuan, an 8.9 percent rise from a year ago.

China Mobile's monthly average revenue per user, a key index of the industry to monitor a telco's profitability, was 75 yuan in the first half, about 10 percent less than a year ago.

China Mobile added 35.87 million users in the first half to total 493 million by the end of June. The telco had 957,000 3G users since it started a trial 3G service in April.

In the first half, China Mobile took 66 percent of the total new additional mobile users, compared with 85 percent a year ago, due to the "changed competitive landscape," the company said.

"The gap between China Mobile and other rivals will become narrow but it will still dominate the market for about two years," said Wu Wenzhao, a telecommunications analyst of Analysys International.

In January, China issued 3G licenses to China Mobile, China Unicom and China Telecom.

(Shanghai Daily August 21, 2009)

Tools: Save | Print | E-mail | Most Read Bookmark and Share
Pet Name
China Archives
Related >>
- China Mobile offers sops to 3G applications developers
- China Mobile online store out
- China Mobile takes steps toward a 4G network
- China Mobile 3G system gets fund boost
- Domestic firms acquire 88% share of China Mobile 3G bid
June 7 Tokyo 2nd China-Japan High-Level Economic Dialogu

June 30 Shanghai 2009 Automotive Engine Technology Seminar

September 8-12 Xiamen China Int'l Fair for Investment and Trade
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?