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China Mobile posts 6 per cent profit gain on strong jump in 5G users in first half
- The world’s largest wireless network operator posted a net profit of US$9.1 billion in the six months through June
- The state-owned telecoms carrier also recorded 251 million 5G mobile subscribers at the end of June
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China Mobile, the world’s largest wireless network operator by subscribers, reported a 6 per cent rise in profit for the first half of this year, boosted by new 5G subscribers and cost-paring efforts.
Net profit rose to 59.1 billion yuan (US$9.1 billion) for the six months through June, compared with 55.8 billion yuan in the same period last year, according to the company’s statement on Thursday. Operating revenue advanced to 443.6 billion yuan, up 13.8 per cent from a year earlier. The company raised its interim dividend to HK$1.63 a share, compared with HK$1.53 a year before.
The earnings bolster the prospects for China Mobile – one of the three state-owned mobile network operators that were expelled by the New York Stock Exchange earlier this year – as it seeks a listing in mainland China.
While all three Chinese telecommunications carriers are focusing on commercial and industrial applications to accelerate 5G revenue growth and recoup their investment, it is especially crucial for China Mobile which has lagged rivals in adding users.
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China Mobile added 3.6 million users in the first half – a marked improvement from 2020, when it had lost over 8 million subscribers in the full year. But the gains pale in comparison to 11.5 million new customers lured by China Telecom Corp and a net addition of 4.6 million subscribers by China Unicom in the same period.
Shareholders of China Mobile are awaiting details on the company’s listing plans in mainland China which received board approval in May.
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