China Mobile's nine-month profit falls 7.9% on higher costs

China Mobile

Tue 11:56

Overview
China telecom operator's nine-month operating revenue fell 1.8% yr/yr to RMB780.3 bln
Profit attributable to equity shareholders dropped 7.9% yr/yr to RMB106.2 bln
Company added 8.89 mln mobile and 13.05 mln broadband customers in nine months

Outlook
China Mobile plans to accelerate integrated deployment of communications, computing and AI networks
Company aims to reinforce strategic positioning in AI and expand in the computing market
China Mobile will focus on improving quality and efficiency to enhance core competitiveness

Result Drivers
PRINCIPAL BUSINESS DECLINE - Co said revenue from principal businesses fell 3.7% yr/yr, contributing to overall revenue and profit declines
HIGHER PRODUCT COSTS – Cost of products sold rose RMB11.5 bln, driving total operating expenses higher despite declines in other expense lines
NETWORK EXPANSION - Co said it continued to expand communications and broadband networks, adding 8.89 mln mobile and 13.05 mln broadband customers

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
9M Net Income Attributable
 
RMB 106.2 bln
 
9M Revenue
 
RMB 780.3 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy"
Wall Street's median 12-month price target for China Mobile Ltd is HK$95.50, about 18.6% above its October 20 closing price of HK$80.50
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)