China Mobile Limited (referred to below as the "Company", and together with its subsidiaries, the "Group") (HKEx: 941) (NYSE: CHL) announced its 2008 interim results today. 2008 has been an extraordinary year for China. In spite of a series of natural disasters, China's economy has managed to sustain steady growth. During the first half of 2008, the Government made an announcement defining the direction of the reform of the telecommunication industry. Leveraging our competitive advantages, through effective management and united effort, China Mobile Limited overcame a variety of challenges to record a healthy business performance, remarkable financial results and favorable profitability. In August 2008, the world watched as the Beijing Olympics was held successfully, and China had fulfilled her commitment to the world. As the mobile telecommunications services partner for the Beijing Olympics, the Group was proud to have played its role, doing an outstanding job in ensuring successful communication services. For the six months ended 30 June 2008, the Group's operating revenue continued to grow, reaching RMB196,460 million, representing an increase of 17.9 per cent. over the same period of last year. Profitability was significantly enhanced, and profit attributable to shareholders reached RMB54,849 million – an increase of 44.7 per cent over the same period of last year due partly to change in PRC enterprise income tax rate. Margin of profit attributable to shareholders reached 27.9 per cent.. EBITDA reached RMB104,361 million, representing an increase of 16.2 per cent. over the same period of last year while basic earnings per share reached RMB2.74, an increase of 44.2 per cent. over the same period of last year. The Group enjoyed continued rapid growth in its subscriber base, value-added business and voice usage volume. The net increase of new subscribers per month topped 7.5 million, taking total subscriber number to 415 million. Value-added business grew strongly, continuing to increase its contribution to overall revenue. After the gradual changes to the tariff structure and the roaming tariff scheme, operational revenue sustained steady growth. For the six months ended 30 June 2008, the Group's total voice usage volume reached 1,160.47 billion minutes and the average minutes of usage (MOU) was 496 minutes. Average revenue per user per month (ARPU) was RMB 84. The Company holds the interests and the return on investment for its shareholders – particularly its minority shareholders – in the highest regard. After reviewing the favorable operating results for the first half of 2008, our long-term development plans, as well as the 43% dividend payout plan for the full year of 2008, the Board has recommended the payment of an interim dividend of HK$1.339 per share for the financial year 2008. The Board is convinced that the Company's strong operational performance and cash flow are capable of supporting our future growth, while also providing shareholders with a favorable cash return. To that end the Company will continue its efforts to steadily increase dividend yield in the long term in order to generate the best possible returns for shareholders. The combination of economic growth in China, rising consumer purchasing power, the continuous development of the rural economy and the acceleration of informatization throughout the country is driving a tremendous demand for telecommunications and information services. This, in turn, is creating a huge market for the Group. As industry reformation deepens, with the completion of the restructuring and the introduction of full service operation, changes in the competitive landscape will take place. To meet the new opportunities and associated challenges, China Mobile Limited will leverage its strong foundation and overall competitiveness, as well as optimizing and continuing its current competitive edge in the mobile telecommunications market. The Group will maintain positive business development and financial growth and adapt rapidly to changes in the operational and competitive environment, readying ourselves for full-service operation. At the same time, the Group will focus on innovations, this includes assisting the parent company in the construction of TD-SCDMA network, in which current network resources will be fully utilized, and integrating the 2G network into the 3G in preparation for the full introduction of 3G operations. The Company will also closely monitor the development of TD-LTE network technology to ensure momentum for future development.
-The End- 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 China Mobile Limited (the "Company") to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. 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.. Press enquiries:
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