China Mobile interim profit disappoints investors

August 16, 2012

Telecom giant China Mobile posted a worse-than-forecast rise in first-half net profit of 1.5 percent on Thursday, citing intensive competition and the spread of new mobile technologies.

Net profit rose to 62.2 billion yuan ($9.77 billion) in the six months to June 30 compared to 61.28 billion yuan in the same period last year, the world's largest mobile carrier by number of accounts said.

"We faced a number of severe challenges including the increase in mobile penetration, intensified competition, as well as impact of new technologies and services that are replacing traditional ," it said.

"The group continued to lead the industry in terms of profitability."

The result was lower than analysts' expectations and the company's shares fell 5.03 percent to HK$86.85 on the , which closed 0.45 percent lower.

In the first half of the year, the company's total customers increased 10.7 percent to more than 680 million, including an increase of 15.87 million 3G users to more than 67 million.

said it would have 20,000 TD-LTE base stations, a new generation of wireless broadband technology, covering 13 cities in the second half of 2012, Newswires reported.

"Information and will veer towards broadband, mobility and integration," said the company in the filing.

"With the development of the TD-LTE industry chain and its commercialisation on an international scale, the group will continue to gain momentum."

Explore further: China Mobile reports half-year profit up 1.5 percent

Related Stories

China Mobile 1H profit rises to $9.6 billion

August 18, 2011

(AP) -- China Mobile Ltd., the world's biggest phone company by subscribers, said Thursday its first-half profit rose 6.3 percent as sales were boosted by greater usage of mobile Internet devices.

SK Telecom Q4 net profit falls on higher spending

February 2, 2012

South Korea's largest mobile carrier SK Telecom said Thursday its fourth-quarter net profit fell 61 percent year-on-year due to higher spending on next-generation network technology and lower fees.

China Telecom upbeat despite 3G worries

March 23, 2006

As wealthier Chinese in big cities snap up multi-functioning mobile phones and those living in remoter areas buy their first basic handsets, the country's biggest phone carrier would seemingly be on a roll. Yet even as China ...

China prepares 4G mobile network: state media

March 4, 2011

China may soon launch a domestically developed "fourth generation" mobile phone system in its commercial market, state media reported Friday, citing leading carrier China Mobile.

Recommended for you

Microsoft aims at Apple with high-end PCs, 3D software

October 26, 2016

Microsoft launched a new consumer offensive Wednesday, unveiling a high-end computer that challenges the Apple iMac along with an updated Windows operating system that showcases three-dimensional content and "mixed reality."

Making it easier to collaborate on code

October 26, 2016

Git is an open-source system with a polarizing reputation among programmers. It's a powerful tool to help developers track changes to code, but many view it as prohibitively difficult to use.

Dutch unveil giant vacuum to clean outside air

October 25, 2016

Dutch inventors Tuesday unveiled what they called the world's first giant outside air vacuum cleaner—a large purifying system intended to filter out toxic tiny particles from the atmosphere surrounding the machine.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.