China Mobile, the world's largest wireless operator by subscribers, yesterday re-ported the slowest growth in interim profit since the company listed in 1997.
It also warned that both margins and average revenue per user – a gauge of profitability – would be under pressure as the number of new mobile subscribers slowed down.
“Penetration is relatively high. We will still get many new users, but the speed will slow. This is very normal. [And] we went from two operators to three. So of course competition is stronger,” said Wang Jianzhou, chairman. “But China Mobile is not a utility company completely. We are still growing.”
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