China Mobile rings in 138.4b yuan profit

Staff reporter

China Mobile (0941) reported a 5 percent year-on-year increase in net profit to 138.4 billion yuan (HK$148.75 billion) in 2024, supported by the solid performance of its core business.

China Mobile's operating revenue rose 3.1 percent year-on-year to 1.04 trillion yuan in 2024, driven by a 3 percent increase in telecommunications services revenue to 889.5 billion yuan. The total number of connections reached 3.67 billion, with a net addition of 316 million.

The company declared a final dividend of HK$2.49 per share, bringing its total dividend for 2024 to HK$5.09, up 5.4 percent from a year earlier, including the interim payout.

China Mobile vowed to gradually lift its cash dividend payout to above 75 percent of profit attributable to shareholders over the three-year period starting from 2024, it wrote in a filing with the stock exchange.

The company's stock has gained 10.45 percent so far this year.

The company expects steady revenue growth and strong profit this year, chief executive He Biao said at a press conference.

He said that capital expenditure for this year is forecast to reach 151.2 billion yuan, a 7.8 percent decrease from last year, with 71.6 billion yuan allocated to connectivity projects, down 17.9 percent year-on-year.

Capital expenditure in 2024 totaled 164 billion yuan, accounting for 18.4 percent of telecommunications services revenue, a decline of 2.5 percentage points compared to the previous year.

Chairman Yang Jie said capital expenditure will continue to decrease gradually over the next two to three years, but the company will continue investing in artificial intelligence and computing power.

The industry estimates 6G could enter the commercial phase between 2028 and 2030, Yang said.

The group saw a three-year investment peak when deploying its 5G network, with annual investment levels ranging from 180 billion to 190 billion yuan, Yang added. He believes that the 6G network could trigger the next wave of investment.

China Mobile anticipates stable revenue from its consumer market this year, with a net addition of over 50 million 5G customers. In 2024, consumer market revenue reached 483.7 billion yuan, while the number of 5G network customers grew by 88 million to 552 million, making up 55 percent of the total customer base.