This article was first published by Seeking Alpha on September 1, 2014
By Sarfaraz A. Khan. Research Asst. Sumaiya Amin
Summary: China
Mobile has recently reported its half-yearly results. The company’s revenues
climbed but income dropped on higher costs. China Mobile’s profits could
continue to remain under pressure this year. It’s long term outlook, however,
is what investors should focus on.
China Mobile
(NYSE:CHL), the biggest player in China's enormous telecom market, with the
largest subscriber base in the world, could continue to struggle with profits
this year. But the company is eyeing a brighter future in the long term.
The recent
earnings release has shown a drop in profits, but the company is growing where
it matters most, data services.
Earlier this
month China Mobile released its half-yearly results in which operating revenues
increased by 7.1% in H1-2014 from a year ago to $52.8 billion, driven by a 4.7%
increase in revenues from telecommunication services, to $48.5 billion. The
improvement was due to a 27.81% increase in data services revenues which offset
the 53% drop in voice services revenues. The data services unit was buoyed by
52% higher wireless data traffic revenues, which now represent a little less
than a quarter of China Mobile's core telecommunication services.
