China Mobile reports 15% profit drop in H1 2019, accelerating 5G deployment to boost sales
Aug 09, 2019 (China Knowledge) - China Mobile (00941), the world's largest mobile services provider, reports a 15% drop in profit in the H1 2019 to RMB 56.06 billion. Operating revenue was down 0.6% to RMB 389.43 billion, while telecom services revenue slipped 1.3%. China Mobile is pursuing new growth drivers alongside 5G roll-out.
The state-owned telco's revenue and profits have been under pressure over the past few quarters because the market for fourth-generation internet services saturated. Meanwhile, users and government also demand telcos to reduce prices.
To boost data traffic, China Mobile has been developing products that combine content and applications, and setting up digital platforms that help connect devices in households.
Company officials said at a news conference yesterday that they aim to add 45 million 4G subscribers this year, alongside an additional 25 million broadband users and 300 million internet-of-things (IoT) connections.
Currently China Mobile is among the four Chinese telcos that are given the license for the commercial deployment of 5G services in June. The company plans to set up more than 50,000 5G base stations in China and launch 5G commercial services in over 50 cities this year.
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