China Mobile Q3 net falls 9%

China Mobile Q3 net falls 9%

Dylan Bushell-Embling  |   October 22, 2013
telecomasia.net
China Mobile has reported a nearly 9% decrease in Q3 profit, blaming the impact of competition from both OTT providers and rival operators.
 
The company revealed it earned a profit for the quarter of 28.4 billion yuan ($4.66 billion), down 8.8% year-on-year, despite a 12.5% increase in revenue to $159.9 billion yuan.
 
Bloomberg notes that the quarterly profit decline is the company's biggest since 1999.
 
For the first nine months of the year, net profit declined 1.9% to 91.49 billion yuan, but revenue grew 9.4% to 463 billion yuan.
 
In a stock exchange filing, China Mobile said during the year to date, “the group experienced severe difficulties and challenges arising from...greater impact from OTT products on the traditional communications industry and more intense horizontal competition due to the continued increase in mobile penetration.”
 
Over the period, average monthly net customer additions reached nearly 5 million. As of end-September, China Mobile had 755 million customers, including 169.5 million on 3G. Total ARPU stayed flat at 66 yuan, but average MoU declined to 490 from 495.
 
China Mobile's heavy spending on its trial TD-LTE networks are also putting pressure on the company's bottom line. The company plans to invest 41.7 billion yuan to upgrade its 4G network, and last month awarded initial vendor contracts worth a reported 20 billion yuan.
Dylan Bushell-Embling

 

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