China Mobile has revealed its financial performance for the first three quarters of 2024 indicating its investment in 5G network is reaping significant benefits.
China Mobile, the # telecom operator in the world in terms of mobile phone customers on its network, does not reveal the specific contribution of its 5G business to the total revenue.
As of September 30, 2024, China Mobile has achieved significant milestones in its growth, driven largely by the expansion of its 5G network. With a total of 1,004 million mobile customers, the company has successfully attracted 539 million 5G network customers, marking a notable increase from 514 million in the previous period. This surge illustrates the widespread adoption of 5G technology and its impact on the company’s overall performance.
China Mobile said handset data traffic rose by 2.1 percent in the first three quarters of 2024, reflecting the enhanced capabilities and faster speeds offered by the 5G network.
China Mobile’s handset data traffic was 123.9 billion GB in the first three quarters of 2024 vs 81.1 billion GB in the first two quarters of 2024.
The average data usage per user (data DOU) reached 15.7GB in the first three quarters of 2024 vs 15.5GB in the first two quarters of 2024, indicating that customers are increasingly relying on mobile data services, particularly 5G, for their daily needs.
Impact on Average Revenue Per User (ARPU):
While the mobile ARPU decreased from RMB 51 to RMB 49.5, the growth in 5G customers signifies a broader customer base that is likely to generate new revenue streams as usage patterns evolve and 5G services expand.
Expansion of the Home Market:
The Group has proactively built out a smart home ecosystem centered around a full-gigabit network, promoting services under the China Mobile Aijia (AI Home) brand. Initiatives like FTTR (Fiber to the Room) and HDICT (home informatization solutions) cater to customers looking for integrated solutions, facilitated by the high-speed connectivity of 5G.
As of September 30, 2024, China Mobile reported 314 million wireline broadband customers, a net increase of 15.36 million in the first three quarters. This growth is further supported by enhanced customer experiences that 5G technology enables.
China Mobile said the number of household broadband customers reached 276 million, with a net increase of 12.46 million in the first three quarters of the year. Household customer blended ARPU was RMB43.2 in the first three quarters of the year.
Revenue Growth:
For the first three quarters of 2024, China Mobile’s operating revenue grew by 2.0 percent year-on-year, reaching RMB 791.5 billion. Revenue from telecommunications services also grew by 2.0 percent, showcasing the integral role of 5G in driving service revenue.
The introduction of 5G-related products and services is expected to further enhance revenue potential in the future, especially as customers shift to higher-value offerings.
Profit Growth:
Profit attributable to equity shareholders increased by 5.1 percent year-on-year, reaching RMB 110.9 billion. This profitability can be partly attributed to the expanding 5G customer base, which not only increases the number of subscribers but also enhances customer engagement with higher data usage.
Future Prospects:
The sustained focus on 5G technology positions China Mobile well for future growth. The ongoing rollout of advanced 5G applications, including IoT solutions and smart city initiatives, is expected to attract more customers and increase revenue in various sectors.
The growth of China Mobile is significantly driven by the adoption of 5G technology, evidenced by a substantial increase in 5G customers and rising data usage. While the company faces challenges in maintaining ARPU, the overall growth trajectory suggests that 5G is set to play a crucial role in shaping the future of China Mobile’s service offerings and profitability.
Baburajan Kizhakedath
