China Mobile's growth slows 50%

21 Oct 2008
00:00

China Mobile's earnings rose 26% this quarter, a disappointing showing nearly 50% lower than the company's Q2 results.

The company earned a net income of 27.7 billion yuan ($4.1 billion) for the quarter.

The result was below market analysts' expectations. According to Marketwatch, analysts were expecting profits of around $4.31 billion.

The showing is particularly disappointing considering revenue grew 51% in the second quarter of this year.

China Mobile attributes the result to the slowing Chinese economy, which is still reeling from the US financial crisis.

The company's growth rate may continue to slow next year, as the Chinese government introduces legislation designed to stimulate competition in the mobile sector.

The company will be facing new competitors in the mobile market - including China Telecom, which is in the process of rolling out a CDMA network.

Related content

Follow Telecom Asia Sport!
Comments
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.