China Mobile (CHL) misses earnings estimates (1Q05)

| About: China Mobile (CHL)

Chinese wireless operator China Mobile (ticker: CHL) reported Q1 2005 results today. The company missed profit estimates. Details:

Q4 Results:
(all percentage changes and comparisons are year on
year, unless stated otherwise, assumes currency conversion of RMB 8.27:
US $1)

  • Revenue rose 30%
    to $6.6 billion.
  • EBITDA rose 22% to $3.6 billion.
  • EBITDA margin decreased to 54% from 57.6%.
  • Net income increased 19.8% to $1.36 billion.
  • Nomura International projected net income of $1.44 billion.
  • Merrill Lynch projected net income of $1.39 billion - $1.45 billion.

Bertrand Chui, an analyst at ICEA Securities:

....the disclosure for quarterly results aren't as
detailed as interim or final results, thus the market doesn't pay as
much attention unless there are some major surprises.

Q4 Subscriber Results:

  • Added 9.58 million subscribers, bringing its total to 213.87 million.
  • Mobile subscribers using mobile-data services rose 11% sequentially to 174.0 million.

Comment: Intense competition in the wireless space was cited.

China Mobile's stock market performance: