Science & technology
China Mobile net profit drops 8.5% on competition, regulation
Publish Date: Aug 19, 2014
China Mobile net profit drops 8.5% on competition, regulation
CHINA, HONG KONG : A woman walks past a China Mobile sign in Hong Kong on August 14, 2014. . AFP PHOTO / DALE DE LA REY
  • mail
  • img
newvision

HONG KONG - China Mobile, the world's biggest mobile operator by subscribers, said Thursday its half-year net profit fell by 8.5 percent, blaming the downturn on fierce competition and market reforms.

The company said in a filing to the Hong Kong bourse, where it is listed, that its net profit for the first six months of 2014 fell to 57.7 billion yuan ($9.37 billion), down from the same period last year.

It follows an announcement in March when the company said its 2013 full-year net profit went down by six percent, its first decline for more than a decade.

Its shares closed at HK$88.3 in Hong Kong trading Thursday, up 1.09 percent, while the city's benchmark Hang Seng Index closed down 0.36 percent.

"The company will face relatively high pressure in its short-term growth," it said in the filing, adding market competition and reforms that included changing taxation methods brought down profitability.

Revenue was up 7.1 percent at 324.7 billion yuan, while its subscriber base rose to more than 790 million, up 6.8 percent, including 14 million 4G users.

The Beijing-based company was granted the license to operate the faster next-generation 4G data network in China in December last year.

"Communications operators have entered into a new phase of 4G competition, and market competition will become fiercer," the company said.

The 4G network is being "rapidly built up", the company said, now with 410,000 base stations put in place, covering 300 cities.

One of China Mobile's main competitors, China Unicom, said earlier this month its first half net profit rise 26 percent to 6.69 billion yuan.

Its mobile subscribers grew by 14.02 million to 295 million, and total mobile data usage was up more than 80 percent year-on-year.
 

Related Stories

China's biggest mobile firm launches Apple iPhone sales

China Internet population reaches 632 million

Microsoft to comply with China amid probe

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Spacewalk to go ahead on Sunday despite helmet leak
Two US astronauts will go ahead with a spacewalk this weekend despite a flaw in one of the spacesuits that allowed water to seep into the helmet, the US space agency NASA has said....
Sky-scanning instrument finds new galaxies
A new instrument on Europe's Very Large Telescope (VLT) has produced the most detailed 3-D view yet of the deep Universe....
Google unveils reorganization in Europe
Google said Wednesday it was launching a reorganization of its European operations in the face of a tougher regulatory environment....
Twitter boosts effort to stop spoofing, data leaks
Twitter said Thursday it was ramping up efforts to crack down on impersonation on the messaging platform as well as the leaking of personal, private data....
Researchers create
Australian researchers say they have created two jet engines using 3D printing in what is described a world-first....
Japan companies to jointly work on self-driving car technology
Japan's big three automakers will team up with electronics giants and the government in a bid to propel the country into the front ranks of self-driving car technology....
Do you think government is doing enough to contain the typhoid out break?
Yes
No
Can't Say
follow us
subscribe to our news letter