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Key Operation Data
Selected Unaudited Key Performance Indicators
Financial Data
Selected Unaudited Key Operational Statistics of CMHK and its subsidiaries or the "Group" For the period from
1 Jan to 31 Mar 2003
(Total 90 days)
For the period from
1 Jan to 31 Mar 2002
Pro-forma combined* (Total 90 days)
Increase
Total Revenue (RMB) 37.650 billion
(equivalent to approx.
HK$35.519 billion)
34.205 billion
(equivalent to approx.
HK$32.269 billion)
10.1%
EBITDA (RMB) 22.395 billion
(equivalent to approx.
HK$21.127 billion)
20.278 billion
(equivalent to approx.
HK$19.130 billion)
10.4%
EBITDA margin 59.5% 59.3%  
Net Profit (RMB) 8.975 billion
(equivalent to approx.
HK$8.467 billion)
8.178 billion
(equivalent to approx.
HK$7.715 billion)
9.7%
Net Profit margin 23.8% 23.9%  

Note:
* The pro-forma combined financial data have been prepared as if the current structure of the Group (including 21 mobile communications operating subsidiaries) had been in existence during the first quarter of 2002.

 

Operating Data
  As at 31 Mar 2003 /
From 1 Jan to 31 Mar 2003
(Total 90 days)
As at 31 Dec 2002 /
From 1 Oct to 31 Dec 2002
(Total 92 days)
As at 30 Sep 2002 /
From 1 Jul to 30 Sep 2002
(Total 92 days)
Number of Subscribers 123.81 million 117.68 million 111.45 million
** Net increase in subscriber 6.13 million 6.23 million 6.00 million
** Average Revenue per User per Month (ARPU)(RMB/User/Month) 105
(equivalent to approx.
HK$99)
106
(equivalent to approx.
HK$100)
112
(equivalent to approx.
HK$106)
** Total Usage (Minutes) 74.583 billion 70.695 billion 67.906 billion
** Average Usage per User per Month (MOU) (Minutes/User/Month) 209 204 207
** Average Revenue per Minute (RMB) 0.505 0.519 0.541
Number of Users of Mobile Data Services 64.38 million 57.73 million 52.49 million
** Short Message Services Usage Volume (Messages) 17.45 billion 13.30 billion 10.42 billion
Network Capacity (Users) 148 million 141 million 137 million
Network Utilisation Rate 83.7% 83.2% 81.5%
Number of Employees 60,138 59,633 59,307
Labour Productivity (Subscribers/Employee) 2,059 1,973 1,879

Notes:
** for the relevant reporting period

During the first quarter of 2003, the Group continued to adopt rational and effective competitive strategies emphasising customer value. Guided by user consumption patterns, the Group segmented its customer base to address the needs of different categories of customers. It launched personalised products and premium quality services to establish and promote its brands, enhance customer loyalty, and to proactively retain and grow its base of existing and potential high-value customers.

The business of the Group continued its favourable growth during the first quarter of 2003. As at 31 March 2003, the Group's subscriber reached 123.81 million, representing a net increase of 6.13 million subscribers in 3 months from the subscriber base as at 31 December 2002.

In response to increasing competition and to enhance the loyalty of subscribers, the Group augmented its promotion of certain loyalty measures to some of its subscribers (especially high-value customers) in the first quarter of 2003. Besides, as most new subscribers are low-usage subscribers, the Group's ARPU and average revenue per minute during the first quarter of this year continued to decline. Nonetheless, the rate of such decline has moderated noticeably as compared to the fourth quarter of the previous year. The ARPU for the first quarter of 2003 was RMB105, representing a decrease of RMB1 from RMB106 for the fourth quarter of 2002. The decline in the average revenue per minute led to an increase in MOU benefiting from the effect of price elasticity, which together with the robust subscriber growth, had contributed to favorable growth of total usage and total revenue. The Group's short message services usage volume continued to grow rapidly during the first quarter of 2003, indicating the enormous development potential for the Group's mobile data business.

With robust business growth, effective cost controls and the further realisation of the benefits of economies of scale, the Group achieved sustained favourable growth in its revenue, EBITDA and net profit during the first quarter of 2003, recording an increase of 10.1%, 10.4% and 9.7% respectively compared to the pro-forma combined figures for the same period in 2002. The average revenue per day, EBITDA per day and net profit per day also increased by 4.9%, 3.3% and 2.5% respectively compared to the fourth quarter of 2002. EBITDA margin was sustained at a high level of 59.5% during the first quarter of 2003.

Despite increasing market competition, the Group will continue to adopt rational and effective competitive strategies. The Group will specifically strengthen its business development strategy in response to market changes. The Group will also aim to maintain its fundamentals and consolidate its leading market position through market segmentation and product differentiation, brand building and brand value enhancement, leveraging its leading position in new businesses, as well as further enhancing network quality. The Group will leverage its pioneering and leading market position in China's mobile telecommunications market, and capitalise on the economies of scale and cost benefits derived from the world's largest subscriber base and single integrated premium network. The Group will focus exclusively on the business of mobile telecommunications to continue to enhance customer satisfaction and nurture new revenue drivers, with a view to generating value for customers and shareholders.

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