Analyst Note| Dan Baker |
China Mobile reported a very strong first-half result with services revenue increasing 9.8%, EBITDA up 11.2%, and net profit up 6.0%. The acceleration in the second quarter was highlighted by second-quarter services revenue increasing 13.8%, EBITDA up 16.4% and net profit up 8.5%. First-half net profit growth would have increased to 16.8% without the extra CNY 8 billion of accelerated depreciation related to older assets. China Mobile expects only CNY 1.4 billion of accelerated depreciation in the second half and about CNY 2.2 billion in 2022.