China Mobile net profit of 83.9 billion the first

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China Mobile (0941.HK) 21, the disclosure of the third quarter report shows that three quarters of the company profit attributable to shareholders reached 83.9 billion yuan, an increase of 1.8%. China Telecom (0728.HK) released the same day showed three quarterly company profit attributable to shareholders of the first three quarters fell 33.9%, to 11.39 billion yuan. It is noteworthy that, due to new users as well as their competitive market a high base, China Mobile wireless music using the number of customers, the number of clients and other value-added multimedia services using the slowdown, showing a weak growth trend.
First Capital Securities researcher Ren Wenjie that China Unicom, China Telecom in the first year of the two companies in the 3G network construction,[link widoczny dla zalogowanych], brand publicity, greater investment, which constitutes a certain pressure on its performance, short-term profit microscopic dawn.
earned 310 million yuan to move on
thanks to an absolutely dominant position, China Mobile still maintaining a super profitability. The first 9 months of this year reached 326.98 billion yuan revenue, an increase of 8.9%; EBITDA (income tax profit before depreciation and amortization) was 167.7 billion yuan, an increase of 5.5%; the profit attributable to shareholders of 839 billion yuan, up 1.8 %.
China Mobile chairman and CEO, Mr Wang said the macroeconomic slowdown because of the negative impact of consumer communication, mobile user penetration rate of increase and decrease after the new user space competition after the reorganization, the company subscriber growth slowing down signs.
data show that China Mobile is currently in the market share of new subscribers from the previous 90% to 60% now. As of the end of September, the total number of 508 million mobile users,[link widoczny dla zalogowanych], 51.12 million new subscribers the first three quarters. China Unicom announced Sept. 20, the user data, new GSM users in September was 93.5 million, compared with a net increase of 807,000 in August has been accelerated, the cumulative total of about 143 million customers.
In addition, the mobile communications market competition, the average level of tariff reduction, ARPU (revenue per user per month) continues to decline. Regard to China Mobile, due to new subscribers are mainly low-usage customers and new marketing programs gradually introduced charges,[link widoczny dla zalogowanych], leading to ARPU continued to decline, while traffic to a certain excitation, the total number of call minutes increased by 19.5%.
but it is worth noting that, due to fierce market competition, new users as well as their high base, China Mobile, part of the business slowdown. Data show that China's mobile value-added services using the customer number is 459 million, essentially flat with last year, MMS using the number of customers was 1.32 million, with 134 million last year, a slight increase of 6%; wireless music using the number of customers was 3.98 million, a slight increase 2.3%.
Wang said China Mobile will be based on a good foundation and overall strength, give full play to existing strengths and continue to maintain the good business development and sustained growth.
China Telecom profits drop
33%
for new entrants into the mobile communications market, China Telecom, the present results have to endure the throes of decline.
first three quarters of China Telecom, operating income reached 154.7 billion yuan, up 15.3%; EBITDA of 635 million, down 3.9%; profit attributable to shareholders of 11.39 billion yuan, down 33.9%.
China Telecom, explained to those concerned, the company scale to promote the development of mobile business, increased marketing costs to be the appropriate investment, which will pressure the company to bring short-term profits.
China Telecom Chairman Wang Xiaochu said the company is currently in the market after the acquisition of mobile business expansion phase, growth momentum is expected to resume next year, but the CDMA business needs 3 years to 4 years to turn around.