By Clarence Leong
China Mobile Ltd.’s first-half profit rose 19% from a year earlier, thanks to cost-cutting initiatives and new income streams that boosted revenue.
The telecommunications giant said Thursday that it recorded 70.28 billion yuan (US$10.45 billion) in net profit for the first six months, compared with CNY59.12 billion last year. Revenue was CNY496.93 billion, rising 12% from a year earlier.
Among China Mobile’s segments, revenue from digital transformation jumped 39%, while that from mobile cloud more than doubled to CNY23.4 billion, it said.
China Mobile declared an interim dividend of HK$2.20 a share, up 35% from a year earlier. It said the 2022 dividend payout ratio will increase from the previous year, and next year it will distribute in cash 70% or more of the company’s 2023 net profit. The move is aimed at creating higher shareholder returns and sharing the results of the company’s operating gains, it said.
Meanwhile, China Mobile said the combined effect of Covid-19, geopolitical tensions, fluctuating commodity prices and supply-chain disruptions will have an impact on its operations.
Write to Clarence Leong at [email protected]