China Mobile Ltd., the Hong Kong listed subsidiary of China Mobile Communications has reported a 44.7% jump in first half profits after cutting prices to boost subscriber numbers, and a boost from tax changed. The company reported revenues of RMB196,460 million (US$28.7 billion), representing an increase of 17.9 per cent over the same period of last year. Profitability was significantly enhanced, and profit attributable to shareholders reached RMB54,849 million (US$8 billion) -- an increase of 44.7 per cent over the same period of last year due partly to change in PRC enterprise income tax rate.
The net increase of new subscribers per month topped 7.5 million, taking total subscriber number to 415 million.
Value-added business grew strongly, continuing to increase its contribution to overall revenue. After the gradual changes to the tariff structure and the roaming tariff scheme, operational revenue sustained steady growth. For the six months ended 30 June 2008, the Group's total voice usage volume reached 1,160.47 billion minutes and the average minutes of usage (MOU) was 496 minutes. Average revenue per user per month (ARPU) was RMB 84 (US$12.28).
The Board also said that it is convinced that the Company's strong operational performance and cash flow are capable of supporting our future growth, while also providing shareholders with a favorable cash return. To that end the Company will continue its efforts to steadily increase dividend yield in the long term in order to generate the best possible returns for shareholders.
As industry reformation deepens, the Group will focus on innovations, this includes assisting its parent company in the construction of TD-SCDMA network, in which current network resources will be fully utilized, and integrating the 2G network into the 3G in preparation for the full introduction of 3G operations.
The Company will also closely monitor the development of TD-LTE network technology to ensure momentum for future development.
Posted to the site on 27th August 2008
Posted to: www.cellular-news.com/story/33274.php