China Mobile H1 Profit Falls 6.3% Despite 14% Surge in Computing Power Revenue
SingTao · 1 SOURCESabout 2 hours ago6 MIN
Summary
China Mobile Limited (stock code: 941) released its interim results for 2024, revealing a net profit of 78.9 billion yuan (renminbi, same below), representing a 6.3% year-on-year decline. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 173.6 billion yuan, down 6.6% from the previous year. However, the company declared an interim dividend of 2.51 yuan per share (equivalent to 2.9003 Hong Kong dollars), marking a 5.5% increase compared to the same period last year. During the reporting period, total operating revenue reached 538 billion yuan, down 1.1% year-on-year, though it achieved positive growth on a same-caliber basis. Computing power and intelligent services revenue accounted for 22.6% of main business revenue, representing a 2.2 percentage point increase from the prior year.
Key Points
- Net profit declined 6.3% to 78.9 billion yuan, with EBITDA falling 6.6% to 173.6 billion yuan
- Interim dividend rose 5.5% to 2.9003 HKD per share, demonstrating commitment to shareholder returns
- Computing power service revenue jumped 14% year-on-year to 52.9 billion yuan, driving new growth engine
- Mobile Cloud public cloud revenue entered mainland China's top three for the first time
- AIDC (AI-directed数据中心) revenue surged 486.1% year-on-year, with total data center revenue reaching 19 billion yuan
- Mobile subscriber base expanded to 1.01 billion with 58.77 million net additions
- Broadband connections grew to 340 million households, adding 7.7 million new users
- Cellular IoT connections reached 1.51 billion, with 29.58 million net new connections
Why It Matters
China Mobile's strategic shift toward computing power and intelligent services signals a broader transformation in China's telecommunications landscape. The 14% growth in computing power revenue demonstrates the company's ability to diversify beyond traditional mobile services amid intensifying market competition and policy adjustments including VAT reform on telecom services. For Hong Kong investors, the 5.5% dividend increase despite profit decline reflects a balanced approach to rewarding shareholders while funding high-growth technology investments.
China Mobile's strategic shift toward computing power and intelligent services signals a broader transformation in China's telecommunications landscape. The 14% growth in computing power revenue demonstrates the company's ability to diversify beyond traditional mobile services amid intensifying market competition and policy adjustments including VAT reform on telecom services. For Hong Kong investors, the 5.5% dividend increase despite profit decline reflects a balanced approach to rewarding shareholders while funding high-growth technology investments.