17 March 2016 For Immediate Release
Press ReleaseConsolidated its 4G advantages and rolled out the world's largest 4G network, 1.1 million base stations, over 300 million 4G customers
Maintained a favorable growth momentum, industry leader in operating revenue growth and profitability
Data traffic business achieved rapid development and for the first time, revenue from data services exceeded revenue from voice services
Obtained wireline broadband license through the acquisition of assets and businesses from TieTong, accelerating the implementation of full service strategy
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Operating revenue was RMB668.3 billion, up by 2.6%; of which, revenue from
telecommunications services was RMB584.1 billion, down by 1.3%
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EBITDA1 was RMB240.0 billion, down by 0.7%
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Profit attributable to equity shareholders was RMB108.5 billion, down by 0.6%
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Total mobile customers was 826 million, up by 2.4%
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Proposed final dividend of HK$1.196 per share, together with an interim dividend of
HK$1.525 per share already paid, total dividend for 2015 amounting to HK$2.721 per share, representing a dividend payout ratio of 43%
1 The Company defines EBITDA as profit for the year before taxation, share of profit of investments accounted for using the equity method, finance costs, interest income, other gains, depreciation, amortization of other intangible assets, impairment loss of goodwill and gain on the transfer of Tower Assets.
China Mobile Limited (hereinafter, the "Company" or the "Group") (HKEx: 941) (NYSE: CHL) announces its 2015 annual results today.2015 was a crucial year for the China Mobile's transformation. Despite increasing competition in the telecommunications industry, a continued disturbance to the traditional communications landscape by the Internet and changing regulatory policies, the Company seized opportunities in the 4G sector. As the first mover in providing 4G services, the Company continued to
lead innovative business layouts and developments and to focus its efforts on transformation and management efficiency. As a result, the Company has solidified its position as a leading 4G services provider. The Company is an industry leader in revenue growth, and it has
continuously strengthened its competitive position in the marketplace and has laid a solid foundation for sustainable future development.
Benefiting from the rapid development of data traffic business driven by the extension of 4G adoption, the Company's dependency on traditional services as a source of revenue growth
has decreased. The Company's operating revenue in 2015 was RMB668.3 billion, up by
an industry-leading 2.6% compared to the previous year. For the first time, the Company's
revenue from data services exceeded its revenue from voice services, accounting for 52.0% of revenue from telecommunications services.
The Company again demonstrated industry leading profitability. The margin of profit
attributable to equity shareholders was 16.2%, profit attributable to equity shareholders was RMB108.5 billion and EPS was RMB5.30.
For the financial year ended 31 December 2015, the board of directors of the Company
recommends payment of a final dividend of HK$1.196 per share. Together with the interim dividend of HK$1.525 per share paid earlier, this amounts to an aggregate dividend payment of HK$2.721 per share for the full financial year of 2015.
In considering the Company's financial situation, capability to generate cash flow and future development needs, the Company's planned dividend payout ratio for the full financial year of 2016 will be 43%.
In 2015, the Company exerted great effort in all aspects of 4G development and achieved
remarkable results. It has established the world's largest 4G network with superior quality. Its 4G network has approximately 1.1 million base stations and provides coverage for over
1.2 billion people. The end-to-end customer experience has been further enhanced, and the Company's 4G customer Net Promoter Score leads the market. The Company also achieved record highs in customer development, with a net addition of over 200 million within this
year, bringing its total 4G customer base to over 300 million. The Company has already become the world's largest 4G operator in terms of customer base.
Due to the downward trend in traditional voice services and SMS, the Company has attached high importance to and actively explored strategic transformation. It has already achieved
tangible results in its transformation from a voice-centric operation to a data-centric operation, as data traffic has become the primary driver for revenue growth. In 2015, the Company's
mobile data traffic increased 143.7% compared to the previous year; DOU increased 118.5%; and revenue from wireless data traffic increased 30.5%, reaching a total of RMB200.9 billion. The Company's corporate customer base and market share steadily increased this year as well.
Revenue growth rate from corporate telecommunications and informatization services was
higher than the industry average and the Company's revenue market share has reached nearly one third.
The Company's acquisition of assets and businesses from China TieTong Telecommunications Corporation ("TieTong") enabled it to obtain a wireline broadband license and accelerated the implementation of full-service strategy. Through joint development with TieTong in recent
years, its total number of wireline broadband customers exceeded 55 million.
Looking ahead, on one hand, China Mobile is well-positioned to take advantage of the Chinese government's promotion of the cyberpower strategy, implementation of the "Internet+" action plan, and expansion in information services consumption as the key focus of supply-side
structural reforms. On the other hand, the increasing penetration of internet companies into ICT landscape, the intensifying substitution by OTT and other new technologies along with the unpredictability of the regulatory policies have posed new tests for the Company.
Mr. Shang Bing, Chairman of the Company commented, "Faced with a new range of
opportunities and challenges, we need to rapidly adapt to these changes in order to effectively compete. In 2016, leveraging our 4G advantages, we will continue to improve network quality and enhance customer value. We will capture the opportunity of 4G by pursuing revenue
increases and efficiency improvements. We will continue to expand our corporate customer base and increase revenue scope. We will adhere to the principle of high-standard, high-
quality and high-value to develop wireline broadband services. At the same time, we will focus on expanding digital services and leading technological innovations. China Mobile
will seize the opportunities with the emergence of Internet of Everything, and develop a new generation of information network infrastructure. We will move forward to expand connection scale, provide premium services and applications so as to link people and things and between things everywhere."
Forward-looking statements
Certain statements contained in this press release may be viewed as "forward-looking
statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-
looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of
operations implied by such forward-looking statements. These risks, uncertainties and other factors include statements relating to: the Company's business objectives and strategies;
its operations and prospects; its network expansion and capital expenditure plans; the
expected impact of any acquisitions or other strategic transactions; its provision of services, including 4G services and services based on technological evolution, and its ability to attract customers to these services; the expected benefit from its acquisition and planned integration of TieTong; the expected impact of tariff changes on its business, financial condition and
results of operations; the expected impact of new service offerings on its business, financial condition and results of operations; and future developments in the telecommunications
industry in Mainland China, including changes in the regulatory and competitive landscape.
Further information regarding these risks, uncertainties and other factors is included in
the Company's most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") and in the Company's other filings with the SEC.
For press enquiries, please contact: China Mobile Limited
Ms. Rainie Lei
Tel: 852-31218888
Email: rlei@chinamobilehk.com Fax: 852-31218809
China Mobile Ltd. issued this content on 17 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 17 March 2016 06:15:00 UTC
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