China Mobile (941) Q2 2026 earnings summary

Executive summary

• Operating revenue for 1H2026 was RMB 538,035 million, down 1.1% year-over-year, with principal business revenue at RMB 452.7 billion, down 3.1%, and profit attributable to equity shareholders at RMB 78,934 million, down 6.3%.

• EBITDA was RMB 173,626 million, down 6.6% year-over-year.

• Free cash flow surged 111.6% year-over-year to RMB 53,869 million; net cash from operating activities rose 37.0% to RMB 114,900 million.

• Interim dividend per share increased 0.3% to RMB 2.51, with new RMB/HKD payment options.

• Demonstrated resilience in business operations, focusing on network enhancements, innovation, and safeguarding shareholder returns.

Financial highlights

• Principal business revenue declined 3.1% year-over-year, while other business revenue rose 11.2% to RMB 85.4 billion.

• EBITDA margin was 32.3%, down from 34.2% in 1H2025.

• Net profit margin decreased from 15.5% to 14.7% year-over-year.

• Basic earnings per share was RMB 3.64.

• Capital expenditure for 1H2026 was RMB 61.0 billion, representing 13.5% of principal business revenue.

Outlook and guidance

• Targets stable and healthy revenue growth and coordinated profit growth for full-year 2026.

• Focus on integrated deployment and innovation in communications, computing, and AI networks, with strategic emphasis on AI and computing services.

• Aims for net additions of 10 million mobile customers and 18 million integrated broadband network customers, plus over 48,000 PFLOPS in intelligent computing capacity.

• Expects stable-to-rising dividend payout ratio for full year 2026.

• Anticipates continued external headwinds, VAT policy adjustments, and industry transition from conventional to new growth drivers.