China Mobile interim profit disappoints investors

Aug 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: Sony forecasts $2B loss as smartphones lag (Update)

add to favorites email to friend print save as pdf

Related Stories

China Mobile 1H profit rises to $9.6 billion

Aug 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

Feb 02, 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

Mar 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

Mar 04, 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

Alibaba prices IPO at $68 per share

57 minutes ago

Alibaba, the Chinese e-commerce powerhouse named after a fabled, poor woodsman who discovers a thieves' den full of treasures, is ready to strike it rich on the New York Stock Exchange.

Larry Ellison releases helm of mighty Oracle ship

3 hours ago

Tycoon yachtsman Larry Ellison on Thursday stepped down as Oracle's chief executive, trusting a pair of lieutenants to steer the titanic business software firm he helped launch decades ago.

Alibaba's plan: Today, China. Tomorrow, the world.

7 hours ago

Amazon and eBay should watch their backs. As Chinese e-commerce powerhouse Alibaba readies what could be the biggest initial public offering ever on the New York Stock Exchange, it is quietly hinting at plans ...

User comments : 0