China Mobile Reports Continued Steady Growth
The company, which had long been stuck delivering 3G mobile service, has more recently pushed to upgrade its system to the 4G standard.
China Mobile Ltd., one of the world's largest telecom companies, reported revenue for the first quarter rose slightly compared with the same period last year while its profit rose more than 4 percent.
The company, which is roughly three-quarters owned by the Chinese government and has 900 million mobile customers, said its revenue rose nearly 1 percent to 185.5 billion yuan ($30 billion) during the three months. Its profit attributable to shareholders increased to 25.8 billion yuan ($4.1 million) from 24.8 billion yuan ($3.9 billion) a year earlier. No per share figures were provided in the company's announcement.
While China Mobile (NYSE: CHL) dominates its market and maintains a powerful balance sheet, its stock has lagged in recent years as investors remain wary of the government control over the company. Its shares, which closed Friday at $46.52 per American depositary share, have sagged despite a steady rise in revenue over many years, steady dividend payouts, and more recent increases in net profits.
Despite its dominant position and steady growth, shares in China Mobile
have failed to keep pace in recent years. (Source: Thomson Reuters Eikon)
"The Group achieved overall favourable performance from its mobile business during the first quarter of 2018, following its steadfast efforts to further develop its data traffic operations, maintain market competitiveness and boost customers' data usage," the company said in a statement.
The company, which had long been stuck delivering 3G mobile service, has more recently pushed to upgrade its system to the 4G standard. The company reported that 672 million customers are now on the 4G system, an 18 percent increase over the past year with mobile data traffic up 140 percent.