China Mobile (941) H1 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 reached RMB546.7 billion, up 3.0% year-over-year, with telecommunications services revenue at RMB463.6 billion, up 2.5% year-over-year.

• Net profit attributable to equity shareholders was RMB80.2 billion, up 5.3% year-over-year; basic EPS was RMB3.75.

• Digital transformation revenue grew 11.0% year-over-year to RMB147.1 billion, now 31.7% of telecom services revenue.

• Maintained industry leadership in customer base, network quality, and technological innovation, including AI and 5G-A/6G advancements.

• Interim dividend per share increased 7.0% to HK$2.60.

Financial highlights

• EBITDA was RMB182.3 billion, down 0.6% year-over-year; EBITDA margin was 33.3%.

• Free cash flow was RMB67.4 billion; cash and bank deposits stood at RMB248.4 billion.

• Annualized ROE increased to 11.8%, up 0.3 percentage points year-over-year.

• Operating expenses were RMB461.0 billion, up from RMB450.4 billion in H1 2023.

• Capital expenditure for H1 2024 was RMB64.0 billion.

Outlook and guidance

• Company targets stable revenue and profit growth for FY2024, focusing on digital-intelligent transformation, infrastructure upgrades, and expanding AI+ and BASIC6 initiatives.

• Full-year CapEx will be controlled within RMB173 billion, with CapEx to revenue ratio below 20%.

• Plans to further increase cash distribution as a percentage of profit for 2024.

• Expects continued rapid growth in the "New" and "Business" market segments.

• Plans net additions of 80 million 5G network customers, 18 million household broadband customers, and 4 million corporate customers in 2H2024.