Mr. Li Yue resigned from his positions as CEO and Executive Director of China Mobile, the world’s largest mobile operator.
In a press statement, China Mobile said there “no disagreement with the Board and there is no matter
relating to his resignation that needs to be brought to the attention of the shareholders of the
Company.”
A replacement has not yet been named.
China Mobile’s customer growth rate slows to 3.2% as ARPU declines
China Mobile was serving 935 million mobile lines as of 30-June-2019, up 3.2% from 906 million a year earlier. Of these, 734 million lines were served on the 4G network, up 8.4% compared to mid-2018.
China Mobile reported a 10.1% decline in Mobile ARPU to RMB 52.2 (US$7.40) from RMB 58.1 (US$8.24) a year earlier.
In the first half of 2019, China Mobile recorded operating revenue of RMB 389.4 billion (US$55.24 billion), which represented a decrease of 0.6% compared with the same period last year. Of this, revenue from telecommunications services accounted for RMB351.4 billion, down by 1.3% year-on- year.
Nevertheless, China Mobile’s EBITDA improved to RMB151.1 billion, up by 3.6% compared with the first half of 2018. This represents an EBITDA margin of 38.8%, or an increase of 1.6 percentage points year-on-year.
Capital expenditure for the first half of 2019 was RMB 85.2 billion (US$12.08 billion).
Mr. Yang Jie, Chairman of China Mobile, commented, “In the first half of 2019, we witnessed ever-intensifying competition within the telecommunications industry and from cross-sector players. When this is combined with the continued implementation of the national policy on “speed upgrade and tariff reduction”, the operating environment has become more complex and is full of uncertainty. Faced with these challenges, we have introduced timely and measured adjustments to our operations. While adhering to the “Big Connectivity” strategy and advancing the integrated development of the “four growth engines” (personal mobile, household, corporate and emerging businesses), we have maintained a clear focus on high-quality development, supported by solid progress in our business transformation and upgrade. In addition, we have stepped up reforms and innovation, laid out plans for 5G development and introduced measures to further reduce costs and increase operating efficiency.”
Additional notes:
In June 2019, China Mobile was granted a 5G commercial licence. The company says economic and social development in China is creating an immediate demand for 5G, “presenting opportunities for the transformation and development of the information and communications industry like never before. “
