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China Mobile Net Profit Increased 5.6% to CNY 60.6 Billion in 1H16 2016-08-19


China Mobile released the interim report of 2016 on August 11.

Operating revenue

Compared with the same period last year, China Mobile's operating revenue rises 7.1% to CNY 370.4 billion, including CNY 325.4 billion communication service revenue which increased 6.9%. EBITDA hit CNY 134.4 billion with a 2.9% growth. Profit attributable to shareholders was CNY 60.6 billion, increasing 5.6% while its profitability maintains industry-leading. China Mobile has notched up 837 million subscribers with a 2.4% increase.

4G network construction

During the first half of 2016, China Mobile has constructed over 200,000 4G base stations with the total hitting 1.32 million, and indoor 4G coverage has been further expanded. Meanwhile, China Mobile has vigorously strengthened the performance of 4G network - it launched VoLTE HD voice services in nearly 300 cities and deployed carrier aggregation technologies in over 300 cities.

The network advantages have driven 2G/3G subscribers to migrate to 4G. China Mobile's 4G subscribers reached 429 million with an average monthly net increase of over 19 million and a 51.2% 4G penetration rate in 1H16. 4G also improves the upgrade of traffic consumption and customer value. 4G caught 88% mobile traffic and 4G DOU maintains a growth of 31.9%, raising ARPU and data traffic.

Mobile traffic operation

China Mobile's mobile traffic in 1H16 increased 133.9% year over year, and revenue of mobile Internet services rose 39.7%, accounting for 43.3% of the communication service revenue. The revenue of mobile traffic, for the first time, becomes the company's largest source of revenue.

Fixed broadband

The company's fixed broadband subscribers increases 10.81 million to 65.84 million with broadband value improved gradually.

Digital services

Its group customers exceed 3 million in 1H16 while IDC and data dedicated services increase by 65.9% and 47.7% respectively.

IoT connections exceed 80 million.

China Mobile plans to build the open platform and carry out vertical industry consolidation next.

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