China Mobile Profits Up; But ARPU Down

The Hong-Kong listed arm of China Mobile has reported that its first quarter profits rose by 5.2% compared to the year before, to reach RMB 25.21 billion (US$3.69 billion). Operating revenues reached RMB 101.3 billion, representing an increase of 9.2% compared to the same period of last year. EBITDA reached RMB 53.4 billion, representing an increase of 7.7% compared to the same period of last year.

The company warned that its  subscriber growth showed signs of slowing down as a result of the economic slowdown and the increasing penetration rates within the country. The company reguarly posted double-digit quarterly profit and revenue growth last year.

Nevertheless, the company still achieved a average monthly net additional subscribers for the first quarter reaching 6.638 million to reach 477.16 million as at 31 March 2009. However, as the new subscribers are mainly low-end users and new tariffs sales and marketing scheme is gradually rolling out, ARPU and average revenue per minute of usage recorded a decrease, whilst the voice usage volume was stimulated.

ARPU for the quarter dropped sharply to RMB 73 (US$10.70) compared to RMB 83 (US$12.17) in the last quarter of 2008.

The company is also reported to be preparing to launch its long-anticipated Android-based Ophone next month, which could compete with the Apple iPhone which China Unicom is expected to secure the distribution rights in China.

Posted to the site on 20th April 2009