Date
17 December 2017
China Mobile has seen its net profit tumble despite a surge in wireless data traffic. Photo: Bloomberg
China Mobile has seen its net profit tumble despite a surge in wireless data traffic. Photo: Bloomberg

China Mobile wireless data traffic up but profit slips

China Mobile Ltd. (00941.HK) said its wireless data traffic rose 48.1 percent in the first quarter from the same period last year, according to a regulatory filing Tuesday. Mobile data traffic soared 83.8 percent.

The telecom carrier had 781.8 million customers as of March 31, with average monthly net additions above 4.6 million. The number of 3G customers increased to 225 million while 4G customers were 2.79 million, the filing said.

However, net profit fell 9.4 percent to 25.2 billion yuan (US$4.04 billion) in the three months to March 31 compared with the same period last year. Average revenue per user was 62 yuan a month compared with 68 yuan in the previous year.

The company experienced severe challenges from mobile internet which affected traditional communications as a whole, the filing said.

As a result, competition in the traditional communications sector tightened, with more players contributing to market saturation, it said.

China Mobile will boost its data capabilities to keep pace with mobile internet trends and capitalize on the full commercialization of 4G.

– Contact HKEJ at [email protected]

JH/RA

 

EJI Weekly Newsletter

Please click here to unsubscribe