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China Mobile 2014 profit down 10.2 percent, beats forecasts

Published 19/03/2015, 05:26
© Reuters.  China Mobile 2014 profit down 10.2 percent, beats forecasts

BEIJING (Reuters) - China Mobile Ltd said 2014 profit attributable to shareholders fell 10.2 percent to 109.3 billion yuan (12 billion pounds) as the country's largest mobile network poured money into its 4G business.

The profit was slightly higher than the 108.6 billion yuan forecast by analysts polled by Thomson Reuters Smartestimates. China Mobile's revenues of 641.4 billion yuan were 1.8 percent higher from a year ago but lower than expectations of 646.2 billion yuan.

China Mobile said it had acquired 39.43 million mobile subscribers last year, bringing its total to over 800 million.

Of that total, over 90 million were 4G subscribers, a bright spot for the company as these customers generally spend far more on their faster service plans than other users.

Like its peers, China Mobile's revenues are under pressure from Internet-based messaging apps.

The company, which received its 4G licence a year before its rivals, saw its first-mover advantage disappear this month when China Telecom and China Unicom received the green light to begin a full 4G service.

China Mobile proposed a total final dividend of HK$2.92 per share, representing a dividend payout ratio of 43 percent. It also said Executive Director and Vice President Huang Wenlin had retired from her posts.

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