5G and cost-cutting lift China Mobile net

China Mobile (0941), the country's largest telecommunications operator, said its first-half net profit grew 6 percent to 59.12 billion yuan (HK$71.02 billion), driven by 5G business and effective cost reduction.

The company declared an interim dividend of HK$1.63 per share, rising 6.5 percent from a year ago.

In the first half, operating revenue rose 13.8 percent to 443.6 billion yuan, and telecommunications services increased 9.8 percent to 393.2 billion yuan.

Earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 11.2 percent to 162 billion yuan.

China Mobile said total mobile subscribers rose 3.59 million to 946 million as of the end of June. About 251 million were 5G users, with a net addition of 86 million.

The monthly average revenue per mobile user rose 3.8 percent to 52.2 yuan from a year ago, marking the first time it has grown since 2018.

In the first half, China Mobile invested 50.2 billion yuan in 5G-related areas. It had built and put in use 501,000 5G base stations as of the end of June, covering all urban areas of cities at prefecture-level and above, as well as selected counties and key areas in China, it said.

China Mobile is planning to go public in mainland China after being delisted from the US in May amid Sino-US tensions. Chairman Yang Jie expects the company could finish the listing process this year.

Shares of China Mobile slid 0.3 percent to HK$50.3 yesterday.