China Mobile has posted a 5.9 per cent year-on-year decline in net income to 121.8 billion RMB (US$19.5 billion) for the 2013 fiscal year. The loss is the first reported by the publicly-traded telecom in 14 years.
The world’s largest mobile carrier by subscribers also reported 2013 fourth quarter net earnings down by 16 per cent from the same period in 2012. Company shares on the Hang Seng index have fallen 16 per cent for the year as well.
China Mobile has attributed the worse-than-expected results to 4G network development costs and Apple iPhone sales subsidies, as well as declining voice and text messaging revenues.
“We face challenges brought about by an accelerated substitution effect in the traditional communications business by Internet services,” said China Mobile chairman Xi Guohua. “We will push forward with the transition of business development from voice to data.”
Last year China Telecom announced the release of the Yixin mobile messaging and social networking platform in partnership with Chinese Internet operator NetEase, as well as a strategic alliance for mobile devices with Chinese game publisher Perfect World at ChinaJoy in Shanghai.
