The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
CHINA MOBILE LIMITED
中
國移動有限公司
(Incorporated in Hong Kong with limited liability under the Companies Ordinance)
(Stock Code: CHL) Document in pdf format: click here
ANNOUNCEMENT
The unaudited financial data of the Group for the first quarter of 2008 reflected:
.
Operating revenue reached RMB93.024 billion, up by 19.7% over the same period last year
.
EBITDA of RMB49.777 billion, up by 22.2% over the same period last year
.
Profit attributable to shareholders of RMB24.102 billion, up by 37.2% over the same period last year
In accordance with the Company
’s disclosure policy and to further enhance the transparency of the Group and timely provide additional information with which shareholders, investors and the general public may better appraise the business and financial position of the Group, the board of directors (the ‘‘Board’’) of China Mobile Limited (the ‘‘Company’’, together with its subsidiaries, the ‘‘Group’’) announces certain selected unaudited key performance indicators of the Group for the first quarter of 2008.
SELECTED UNAUDITED KEY PERFORMANCE INDICATORS
Financial Data (Note) For the period from 1 January 2008 to 31 March 2008
For the period from 1 January 2007 to 31 March 2007 Increase
Operating Revenue
(RMB) 93.024 billion 77.707 billion 19.7%
EBITDA
(RMB) 49.777 billion 40.719 billion 22.2%
EBITDA Margin
53.5% 52.4%
Profit Attributable to Shareholders
(RMB) 24.102 billion 17.562 billion 37.2%
Margin of Profit Attributable to Shareholders
25.9% 22.6%
Note:
The effect of the adjustment of the income tax rate in Mainland China has been reflected in the financial data for the first quarter of 2008.
Operational Data
As at 31 March 2008/ For the period from 1 January 2008 to 31 March 2008 As at 31 December 2007/ For the period from 1 October 2007 to 31 December 2007
Subscriber Base 392.14 million 369.34 million
Net Additional Subscribers for the relevant reporting period 22.80 million 19.68 million
Average Revenue per User per Month (ARPU) during the relevant reporting period (RMB/User/Month) 82 91
Total Voice Usage Volume for the relevant reporting period (Minutes) 546.40 billion 516.08 billion
Average Minutes of Usage per User per Month (MOU) during the relevant reporting period (Minutes/User/Month) 481 475
Average Revenue per Minute of Usage during the relevant reporting period (RMB) 0.170 0.191
Number of Value-Added Business Users 380.93 million 349.55 million
Number of MMS Users 107.11 million 90.83 million
Number of Wireless Music Users 309.42 million 269.83 million
SMS Usage Volume for the relevant reporting period (Messages) 150.5 billion 137.5 billion
Number of Employees 131,836 127,959
Labor Productivity (Subscribers/Employee) 2,974 2,886
By leveraging our premium network, strong brand recognition, economies of scale and highly effective refined management, the Group continued to maintain a favorable growth in its financial results for the first quarter of 2008. The Group’s operating revenue reached RMB93.024 billion, representing an increase of 19.7% compared to the same period of last year. EBITDA reached RMB49.777 billion, representing an increase of 22.2% compared to the same period of last year. With the positive effect of lowering the income tax rate in Mainland China, profit attributable to shareholders reached RMB24.102 billion, representing an increase of 37.2% compared to the same period of last year. Margin of profit attributable to shareholders reached a relatively high level of 25.9%.
The rapid growth in China
’s economy and the vigorous demand for telecommunications services continued to create a prosperous environment for the Group. The Group achieved a rapid and healthy business development in the first quarter of 2008. Through our continuous expansion into the rural market, our subscriber growth maintains a strong growth momentum and the average monthly net additional subscribers for the first quarter reached 7.60 million, representing an increase of 33.9% compared to the average monthly net additional subscribers of 5.68 million of last year. The Group’s subscriber base reached 392.14 million as at 31 March 2008. However, as the new subscribers are mainly low-end users and tariff adjustments are steadily and gradually introduced in the first quarter, ARPU and average revenue per minute of usage recorded a decrease, whilst the voice usage volume was effectively stimulated. Total voice usage volume increased by 41.8% compared to the same period of last year. Value-added business also continued its rapid growth and SMS usage volume increased by 31.9% compared to the same period of last year. Meanwhile, the development of other data businesses also demonstrated an encouraging growth. The favorable growth in subscriber base and voice usage volume and the development of value-added business resulted in an increase of 19.7% in operating revenue in the first quarter. The Group will continue to increase its investments in sales channels, customer service, network optimization, support system and R&D in order to further enhance the Group’s core competitiveness. Furthermore, the Group will continue to maintain a stable growth in its profitability through refined cost management and by leveraging economies of scale.
To meet new challenges and opportunities, the Group will adhere to the Scientific Development Concept and consolidate its overall competitiveness in order to adapt rapidly to changes in the operational environment. By leveraging our strong foundation and competitive edge and pursuing a sound, balanced and sustainable development, we will maintain a solid, long-term business foundation with the goal of creating best possible returns for our investors.
The Board wishes to remind investors that the above key performance indicators are based on the Group
’s unaudited management accounts. Investors are cautioned not to unduly rely on such data. In the meantime, investors are advised to exercise caution in dealing in the securities of the Company.
As at the date of this announcement, the Board of Directors of the Company is comprised of Mr. Wang Jianzhou, Mr. Li Yue, Mr. Lu Xiangdong, Mr. Xue Taohai, Madam Huang Wenlin, Mr. Sha Yuejia, Mr. Liu Aili, Madam Xin Fanfei and Mr. Xu Long as executive directors, Dr. Lo Ka Shui, Mr. Frank Wong Kwong Shing and Dr. Moses Cheng Mo Chi as independent non-executive directors and Mr Paul Michael Donovan as a non-executive director.
By Order of the Board
China Mobile Limited
Wang Jianzhou
Chairman and Chief Executive Officer
Hong Kong, 21 April 2008