Stable Business Development; Favorable Profitability
HONG KONG, Aug. 20 /PRNewswire-Asia/ --
-- Turnover reached RMB212.9 billion, up by 8.9%
-- EBITDA of RMB109.9 billion, up by 5.8%
-- EBITDA margin of 51.6%, maintained at high level
-- Profit attributable to shareholders of RMB55.3 billion, up by 1.4%
-- Total customer number and net additions were 493 million and 35.87
million, respectively
-- Payment of an interim dividend of HK$1.346 per share. The Company's
planned dividend payout ratio for the full year of 2009 is 43%
China Mobile Limited (referred to below as the "Company", and together with its subsidiaries, the "Group") (HKEx: 941) (NYSE: CHL) announced its 2009 interim results today.
Macroeconomic slowdown, a rising mobile communications penetration rate and changes in the competitive environment of the telecommunications industry in China have posed challenges to the development of the Group's business in the first half of 2009. However, the Group has insisted on exploring innovations and pursuing rational competition. Through effective refined management, the joint efforts of all employees and by fully leveraging our foundation of longstanding advantages, the Group continued to create new competitive edges, overcame a variety of challenges, and promoted the development and operation of its 3G network. As a result, the Group's overall business development remained stable and profitability was favorable.
The Group's operating revenue continued to grow steadily, reaching RMB212,913 million for the six months ended 30 June 2009, representing an increase of 8.9 per cent. over the same period of last year. Profitability remained favorable, and profit attributable to shareholders reached RMB55,329 million -- an increase of 1.4 per cent. over the same period of last year. Margin of profit attributable to shareholders reached a relatively high level of 26.0 per cent.. EBITDA reached RMB109,938 million, representing an increase of 5.8 per cent. over the same period of last year. Basic earnings per share reached RMB2.76, an increase of 1.3 per cent. over the same period of last year.
The Group believes its solid capital structure and financial strength will provide a solid foundation for sustainable future development.
In the first half of 2009, the Group enjoyed continued growth in its customer base, value-added business and voice usage volume, which were the driving forces of the steady growth in operating revenue. In the first half of the year, the net addition of new customers was 35.87 million, taking total customer number to 493 million. In June 2009, customers who used 3G network services reached 959 thousand. Value-added business grew rapidly, continuing to increase its contribution to total revenue, accounting for 28.1 per cent. of the total revenue. For the six months ended 30 June 2009, the Group's total voice usage volume reached 1,387.047 billion minutes and the average minutes of usage per user per month (MOU) was 490 minutes. Average revenue per user per month (ARPU) was RMB75.
The Company determines and commits to hold in the highest regard the interests of its shareholders and the returns achieved for them, especially the minority shareholders. In view of the Company's favorable operating results for the first half of 2009 and having taken into consideration its long-term future development, based on the dividend payout plan for the full year of 2009, the Board recommended payment of an interim dividend of HK$1.346 per share for the six months ended 30 June 2009.
The Board is of the view that the Company's favorable operating results and strong cash flow generating capability will continue to support the sustainable future development of the Company, while providing shareholders with a favorable cash return.
The impact of the global financial crisis on China's economy, changes in the competitive environment of the telecommunications industry and the continuing increase of the mobile communications penetration rate are key factors that affect the future development of the Group. At the same time, economic development is driving a tremendous demand for information services. China's economy is stabilizing and continues to grow. This, together with the Chinese Government's implementation of a series of measures to counter the impact of the global financial crisis and its efforts in maintaining economic recovery and achieving a stable and relatively rapid growth in the national economy, create development opportunities for the Group.
Facing this new business environment, the Group will continue to uphold the Blue Ocean Strategy and insist on rational competition. The Group will maintain its robust market leading position without compromising the value of the telecommunications industry as a whole.
Based on the Group's strong foundation and integrated capabilities, it will extend its existing advantages in the mobile communications market to fulfill the needs of its customers, maintain sound business development and achieve sustained financial growth. The Group will actively develop the 3G business and promote mobile broadband services to individuals, families and corporate customers, aiming to meet the demand of, and create value for, its customers. In the 3G era, the Group will make good use of our network advantage and synergy to implement the effectiveness-driven, distinctive, differentiated full-service strategy. At the same time, the Group will capitalize on its overall influence to proactively develop and promote the LTE network evolution. In addition, the Company will actively search for quality overseas telecommunications assets as investment opportunities and as a way to explore international development. The Company's focus remains unchanged -- to sustain its international leading position in the telecommunications industry and maintain a solid, long-term business foundation with the goal of creating value for the shareholders.
Forward-looking Statements
Certain statements contained in this press release may be viewed as "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of China Mobile Limited (the "Company") to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company's most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") and in the Company's other filings with the SEC.
Press enquiries:
China Mobile Limited
Mr. Guan Yimin or Ms. Rainie Lei
Tel: +852-3121-8888
Fax: +852-3121-8809
