China Mobile reported improving results in the first half of 2016, growing operating revenue 7.1 percent year-on-year to CNY 370.4 billion. Growth in telecom service revenues improved to 6.9 percent to CNY 325.4 billion, compared to an increase of 4.9 percent in the first quarter of 2016. EBITDA rose 2.9 percent to CNY 134.4 billion, and net profit increased 5.6 percent to CNY 60.6 billion. The company declared an interim dividend of HKD 1.489 per share.
China Mobile said the downward trend in the market of recent years was coming to an end and the operator was outperforming the rest of the market. It ended June with total mobile customers of 837 million, up 2.4 percent from a year earlier. Mobile ARPU rose 3.0 percent to CNY 62, supported by a figure of CNY 81 for 4G customers.
Over half of customers, or 429 million used 4G services, after the operator's 4G upgrade campaign led to a monthly average net increase in 4G customers of over 19 million during H1. The 4G network, which grew by over 200,000 base stations in H1 to a total 1.32 million, now accounts for 88 percent of handset data traffic. Total data traffic hit a new record, growing by 133.9 percent year-on-year in H1 to 2,328 PB. As a result, data traffic revenue exceeded voice for the first time at China Mobile during the period.
China Mobile said it plans to continue the 4G marketing in the rest of the year in order to maintain its lead in the market. It aims to maintain a stronger sales growth rate than the broader market and the upward trend in mobile ARPU. The number of 4G base stations should pass 1.5 million by year-end. Capex is estimated at CNY 186 billion over the full year, after CNY 83 billion spent in H1.
The company said it's also exploring ways to improve its position in the wireline broadband market and create provides synergies with other business lines. In the first half of 2016, China Mobile added 10.81 million fixed broadband customers, for a total 65.84 million at the end of June. Going forward it will focus on premium products, with a minimum 50 Mbps, and also develop a smart home gateway in the second half of this year.
