China Mobile profits rise

20 March 2009

HONG KONG: China Mobile, the telecoms giant, posted a net profit of 112.8 billion yuan ($16.5bn; €12.1bn; £11.4bn) in 2008, up from 87.1 billion yuan the previous year, with its annual revenues also rising by 15.5% to 412.3 billion yuan.

The company is one of China's biggest brands, and is also aiming to expand its operations worldwide, something corporations from the company have struggled to achieve effectively thus far.

Overall, the mobile firm's total subscriber base rose by 23.8% to 457 million, adding an average of over 7 million customers a month.

In the fourth quarter of last year, its earnings rose by 11% to 30.2 billion yuan, slightly below analysts' forecasts, which predicted an upturn of 16.5%.

The company foresees that the global financial crisis will "widen and deepen" this year, and that "its impact on China's economy will continue."

It also argues the country's telecoms industry "will be affected" by the crisis, and that the launch of new 3G licences in the country will "change the industry structure and competitive landscape."

While the government's stimulus package could encourage consumer spending, China Mobile also plans to adopt "innovative marketing strategies" to promote the upgrade of its services to 3G.

Data sourced from Financial Times; additional content by WARC staff