Page 42 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
36
Financial Review
Other Operating Expenses
In 2012, other operating expenses (consisting primarily of network
maintenance expenses, operating lease charges, labor service expenses,
water, electricity and heating expenses, bad debts, asset write-offs,
administration and others) increased by RMB12.5 billion compared to the
previous year. In order to consolidate the leading network advantages,
effectively support its customer and business growth, the Group
reasonably increased its investments in network optimization, system
support, research and development, etc. In addition, with the continuous
expansion of assets scale and the continuous increase in rents and
energy prices, the corresponding expenses, such as network
maintenance expenses, operating lease charges, and water, electricity
and heating expenses, increased accordingly. The number of labor
sourced by third parties reached 334,782 as at 31 December 2012 and
the related labor service expenses were RMB23.9 billion. In view of the
Group’s efforts in monitoring customer credits and stringent control over
defaults in payment by its customers, the Group maintained its bad debt
ratio at a favorable level of 0.80% in 2012. The Group made tremendous
efforts to promote the diligent and thrifty mantra in its business operation,
greatly reduce administrative expenses and promote cost consciousness
of all the employees and endeavored to establish a low-cost, highly
efficient operating system.
EBITDA, Profit from Operations and Profit Attributable
to Equity Shareholders
The Group continued to maintain a relatively high level of profitability in
the industry. The margin of profit attributable to equity shareholders and
EBITDA margin in 2012 reached 23.1% and 45.3%, respectively. The
profit from operations was RMB150.5 billion. EBITDA, profit attributable
to equity shareholders and basic EPS were approximately RMB253.6
billion, RMB129.3 billion and RMB6.43, respectively. On the foundation
of a slower growth in the operating revenue, the Group continued to
optimize its resource allocation, promote management innovation,
improve its refined management and explored avenues of increasing
income and saving costs. The Group is committed to improving its overall
operational efficiency and profitability as well as continuously creating
value for its shareholders.