The carrier is also adding more 5G users along with rivals China Telecom Corp and China Unicom Hong Kong Ltd. (Image: Bloomberg)China Mobile Ltd’s revenue rose in the first half as the coronavirus pandemic prompted industries to accelerate steps toward digitalization, boosting demand at the country’s biggest phone company.
Operating revenue gained 0.1 per cent to 389.9 billion yuan ($56 billion) for the six months ended June, the state-owned company said in a statement Thursday. Net income fell 0.5 per cent to 55.8 billion yuan.
Key Insights
China Mobile’s investment in building a 5G network is starting to pay off as customers upgrading to the high-speed service end up spending more.
The carrier is also adding more 5G users along with rivals China Telecom Corp and China Unicom Hong Kong Ltd, which are sharing networks for the latest-generation service. China Unicom shares soared Thursday after the company reported profit that jumped 38 per cent in the three months ended June to the highest in more than a decade.
The first-half profit decline extends an earnings slump for the carrier. China Mobile’s net income last year fell 9.5 per cent, its biggest annual drop since 2014, after the government mandated price cuts.
Market Reaction
China Mobile’s shares rose as much as 5.9 per cent Thursday in Hong Kong trading. The stock is down 8.5 per cent this year, compared with an 11 per cent drop for the benchmark Hang Seng Index.
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Net wireline broadband subscriber additions: 10.08 million
Total wireless subscribers: 947 million
Interim dividend: HK$1.53 a share