Page 37 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
31
Financial Review
Summary of Financial Results
Benefiting from the solid customer base, continued remarkable addition of new customers, strong growth in wireless data
traffic business and favourable growth in the applications and information services businesses, the Group’s operating
revenue for 2012 reached RMB560.4 billion, representing 6.1% increase compared to the previous year. In order to
effectively support the growth of the customer base and business, respond to market competition, as well as consolidate
and enhance the Group’s core competitiveness in various areas including network, channels, products and services and
human resources, the Group focused its efforts on sustainable healthy development and continuously optimized resource
allocation. While appropriately increasing contribution and input of major resources, the Group strived to improve the
efficiency and effectiveness in resource utilization. The operating expenses in 2012 were approximately RMB409.9 billion,
representing an increase of 8.8% compared to the previous year. The Group’s profitability continued to be in a leading
position in the industry. Profit attributable to equity shareholders was RMB129.3 billion, representing an increase of 2.7%
compared to the previous year. The margin of profit attributable to equity shareholders reached 23.1%. EBITDA was
RMB253.6 billion, representing an increase of 1.0% compared to the previous year, with EBITDA margin reaching 45.3%.
Basic EPS was RMB6.43, representing an increase of 2.6% compared to the previous year.
The Group maintained its robust cash flow as a result of its stable business growth, scientifically refined cost control, rational
and efficient capital expenditure as well as the significantly prominent economies of scale. In 2012, the Group’s net cash
generated from its operating activities and free cash flow were approximately RMB230.7 billion and RMB103.3 billion,
respectively. The total debt to total book capitalization ratio (with total book capitalization representing the sum of total debt
and total equity attributable to equity shareholders) and interest coverage multiple (ratio of profit before interest and tax to
finance costs) remained at a sound level. The Company currently has a corporate credit rating of Aa3/Outlook Positive from
Moody’s Investor Service and AA-/Outlook Stable from Standard & Poor’s, equivalent to China’s sovereign credit rating
respectively.
Underpinned by its perennially stable capital structure, prominent financial strength and strong cash flow generating
capability, the Group has laid a sound foundation for risk management and the achievement of sustainable healthy
development.