China Mobile (Hong Kong) interim results show steady growth, with revenues up 13% to RMB55.1B (US$66.6B) and EBITDA up 15% to RMB33.4B ($4.04B)

August 14, 2002

3 Min Read

HONG KONG -- China Mobile (Hong Kong) Limited (NYSE: CHL) (HKEx: 941)("CMHK" or "the Company", together with its subsidiaries, "the Group") announced its 2002 interim results today. The Company's businesses continued to grow steadily, achieving satisfactory financial results, while maintaining a strong and stable cash flow. Concurrently, the Company successfully completed the acquisition of mobile telecommunications assets in Mainland China, which the Company believes have immense development potential. Despite the slowdown in the global telecommunications industry, CMHK's businesses continued to grow steadily, achieving satisfactory financial performance for the past six months. As at 30 June 2002, excluding the eight recently acquired subsidiaries, the Group's operating revenue reached RMB55.1 billion, representing an increase of 13 per cent. over the same period in year 2001. EBITDA reached RMB33.4 billion, representing an increase of 15 per cent. over the same period in year 2001. The Group's EBITDA margin was 60.6 per cent., net profit reached RMB15.2 billion, representing an increase of 10 per cent. over the same period in year 2001. Earnings per share reached RMB0.82. The Group had over 80.30 million subscribers, representing a net increase of 10.66 million additional subscribers from year-end 2001. Aggregate usage volume exceeded 92.7 billion minutes. Average minutes of usage per user per month (MOU) was 209 minutes. Owing to the Group's stable high-value customer segment and the significant increase in revenue from new businesses, as well as the relatively orderly market environment, the Group's average revenue per user per month (ARPU) was RMB124. Although this figure represents a small decline from RMB127 recorded in the fourth quarter of 2001, nonetheless, the rate of decline slowed. The trend of development of mobile data services is quite positive. The promotion of the "Monternet" brand has achieved initial success. The number of mobile data subscribers exceeded 40 million, and short message usage volume exceeded 12.6 billion. Revenue from new businesses increased by 152 per cent. over the same period in year 2001, and its proportion to total revenue increased by 2.4 percentage points to 5.4 per cent. compared to 2001. During the same period, CMHK completed the acquisition of eight mobile telecommunications companies in Mainland China. This greatly enhanced the Company's overall business growth potential. Following the completion of the acquisition, the Company attained contiguous coverage over twenty-one of the economically more advanced provinces, municipalities and autonomous region in China, with a total population in excess of one billion residing in its service area and a combined subscriber base of over 100 million. Assuming that the acquisition of the eight companies had been completed on 1 January 2002, CMHK's pro-forma combined operating revenue would have been RMB70.4 billion, representing an increase of 14 per cent. over the same period in year 2001. EBITDA would have been RMB41.5 billion, representing an increase of 17 per cent. over the same period in year 2001 and net profit would have been RMB16.6 billion, representing an increase of 18 per cent. over the same period in year 2001. Mr. Wang Xiaochu, CMHK's Chairman and Chief Executive Officer, was pleased with the Company's steady business growth and satisfactory financial performance during the first half of year 2002. Looking to the future, he stated, "with the substantial development potential of Mainland China's telecommunications market, the steady enhancement of the Company's management capabilities and the economies of scale achieved by the Company through the recent acquisition, I am confident about the Company's stable and sustained growth. I am also confident about enhancing the management capabilities and operating results of the eight newly acquired companies." China Mobile (Hong Kong) Ltd.

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