Page 39 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
33
Financial Review
development of corporate SMS and MMS business to minimize the
substitution impact brought by emerging Internet businesses on SMS
and MMS business. In 2012, SMS and MMS revenue reached RMB44.2
billion, representing a decrease of 4.8% compared to the previous year.
With the full utilization of the Four-Network Coordination advantages, the
Group promoted the rapid popularity of smartphones, enhanced the data
traffic dredge effectiveness, in order to enhance the continuous and rapid
growth of the wireless data businesses. In 2012, wireless data traffic
increased by 187.6% and its revenue reached RMB68.3 billion,
representing an increase of 53.6% compared to the previous year and
constituting 12.2% of the operating revenue, which has become the
premier drive of the revenue growth. Due to efforts made for the
promotion of business innovation, key businesses such as Mobile
Mailbox, Mobile Reading, Mobile Video and Mobile Gaming recorded a
favourable growth momentum and their revenue continued to grow. With
the improvement of the marketing, capability and support systems, as
well as the efforts made in the development of corporate
informationalization services, the Group lays a solid foundation for its
sustainable development.
Operating Expenses
In order to consolidate the leading position of the Group in the mobile
telecommunications industry and enhance its future competitiveness, the
Group consistently upheld the principles of forward-looking planning,
effective resource allocation, rational investment and refined management
with respect to its cost-resource allocation. With centralized
management, professional operations, market-oriented mechanisms,
lean organizational structure and standardized processes as the
objectives, the Group made efforts to enhance management efficiency,
to optimize cost structure, to strictly control and reduce the expenses not
directly related to production, and achieved a low-cost, highly efficient
operation. In 2012, the operating expenses increased 8.8% compared to
the previous year to approximately RMB409.9 billion, representing 73.1%
of operating revenue. The Group is committed to continuously
strengthening its refined management, implementing benchmarked cost-
management and continuously optimizing the cost structure to enhance
the efficiency and effectiveness of cost and achieve optimal returns.
Leased Lines
Due to the rapid growth of the 3G customer base and the 3G business,
the TD network utilization rate was significantly increased and the
Group’s TD wireless network capacity leasing fees, which are payable to
its parent company according to actual TD network usage, increased to