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China Mobile Announces H1 2019 Interim Result

Financial results News - Published on Tue, 13 Aug 2019

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China Mobile announced H1 2019 interim results proactively charting 5G development plans, driving high-quality development and maintaining scale advantage. Mr Yang Jie, Chairman of the Company commented that “In the first half of 2019, we witnessed ever intensifying competition within the telecommunications industry and from cross-sector players. When this is combined with the continued implementation of the national policy on speed upgrade and tariff reduction, the operating environment has become more complex and is full of uncertainty. Faced with these challenges, we have introduced timely and measured adjustments to our operations. While adhering to the Big Connectivity strategy and advancing the integrated development of the four growth engines personal mobile, household, corporate and emerging businesses, we have maintained a clear focus on high-quality development, supported by solid progress in our business transformation and upgrade. In addition, we have stepped up reforms and innovation, laid out plans for 5G development and introduced measures to further reduce costs and increase operating efficiency. By taking these steps, we have reinforced our competitive advantage in terms of scale and strengthened our leadership position in the industry, while establishing a solid foundation for the sustainable development of the Company.”

Highlights

1. Devoted concerted efforts to addressing operating challenges and maintained scale advantage

2. Sped up integrated development and achieved a notable momentum shift amongst growth engines

3. Made targeted investments and further enhanced long-term sustainability

4. Proactively charted 5G development plans and established new “5G+” competitive advantages

5. Promoted further reforms and innovation and fully infused entrepreneurial vitality into the company

6. Comprehensively drove high-quality development and continuously created value for shareholders

In the first half of 2019, we recorded operating revenue of RMB389.4 billion, which represented a decrease of 0.6% compared with the same period last year. Of this, revenue from telecommunications services accounted for RMB351.4 billion, down by 1.3% year-on- year. We posted EBITDA of RMB151.1 billion, up by 3.6% compared with the first half of 2018. This represents an EBITDA margin of 38.8%, or an increase of 1.6 percentage points year-on-year. Profit attributable to equity shareholders reached RMB56.1 billion or RMB2.74 per share. Despite a year-on-year decline of 14.6%, our profitability still remained at a leading level among top-tier global telecommunications operators. Our capital expenditure was RMB85.2 billion, and we maintained a healthy level of free cash flow at RMB41.0 billion.

We recorded a net addition of 9.98 million mobile customers, bringing our total to 935 million. Of these, the total number of 4G customers reached 734 million, with a net addition of 21.13 million customers during the first half of 2019. In the wireline broadband market, with a net addition of 18.20 million customers, the total number of customers has reached 175 million. We added 142 million net new Internet of Things (IoT) smart connections, driving the total number of connections to 693 million. The MIGU products saw a rapid uptick in monthly active users. Our household and IoT customers continued to deliver robust growth.

Our efforts to optimise revenue structure and inject new momentum into the growth of our revenue streams have paid off, with the household and corporate businesses both maintaining double-digit revenue gain and contributing a bigger portion to our total revenue. Of which, revenue from Mobaihe amounted to RMB6.2 billion (up by 59.7% year-on-year) while that of DICT (data, information and communications technology) reached RMB13.6 billion (up by 47.3% year-on-year). Meanwhile, revenue from IoT stood at RMB5.2 billion (up by 43.8% year-on-year).

Source :

Posted By : TelecomGuru on Tue, 13 Aug 2019
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