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.

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

• Total mobile customers exceeded 1 billion, with 514 million 5G customers; wireline broadband customers reached 309 million.

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.

• Net cash from operating activities was RMB131.4 billion; cash and cash equivalents at period end were RMB132.1 billion.

Outlook and guidance

• Company expects ongoing macroeconomic improvement but notes uncertainty due to transition between old and new growth drivers.

• Focus remains on digital-intelligent transformation, "AI+" and "BASIC6" initiatives, and deepening reforms for high-quality growth.

• 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.

• Targets steady revenue and profit growth, with focus on expanding 5G, broadband, and digital transformation.