China Mobile (941) Q4 2024 earnings summary

Executive summary

• Achieved record net profit of RMB 138.4 billion, up 5.0% year-on-year, with operating revenue reaching RMB 1,040.8 billion, up 3.1%.

• Significant progress in digital transformation, AI, and cloud initiatives, with digital transformation revenue up 9.9% to RMB 278.8 billion.

• Maintained industry leadership in 5G, gigabit broadband, and brand value, with mobile customers surpassing 1 billion.

• Increased shareholder returns with a 5.4% rise in total dividend per share to HK$5.09 and a payout ratio of 73%.

• Advanced ESG and corporate governance, earning top industry ratings and awards.

Financial highlights

• Operating revenue was RMB 1,040.8 billion, up 3.1% year-on-year; telecommunications services revenue reached RMB 889.5 billion, up 3.0%.

• Net profit hit RMB 138.4 billion, up 5.0%; basic EPS was RMB 6.45.

• Free cash flow rose 22.9% to RMB 151.7 billion; net cash from operations was RMB 315.7 billion, up 3.9%.

• EBITDA was RMB 333.7 billion, with a margin of 32.1%; EBITDA margin declined 1.7 percentage points.

• Dividend payout ratio at 73%, with total dividend per share at HK$5.09, up 5.4%.

Outlook and guidance

• Planned CapEx for 2025 is RMB 151.2 billion, a decrease from 2024, with a focus on 5G, gigabit broadband, and AI infrastructure.

• CapEx-to-revenue ratio expected to continue decreasing.

• Dividend payout ratio to gradually increase to above 75% of profit attributable to equity shareholders over the next three years.

• Targeting over 2.75 million 5G base stations and 500 million gigabit broadband households by year-end.

• Strategic focus on AI+, digital transformation, and platform-based operations for future growth.