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After the net profit fell by 14.6%: What is the poetry and distance of China Mobile?

via:C114中国通信网     time:2019/8/9 12:30:52     readed:67

China Mobile said in the announcement that as the traditional communication service market becomes saturated, the traffic dividend will quickly fade away. Simply relying on traditional factor input to promote performance growth is unsustainable, the industry as a whole shows negative growth, and the company's revenue and profit are also under greater pressure. .

Pressure is also the driving force. For the second half of 2019, China Mobile is striving to achieve the 2019 annual goal in line with the attitude of “steady progress, stay ahead, and continuously improve”.

Among them, in the personal mobile market: 4G customers increased by 45 million, mobile ARPU maintained industry leading; in the family market: home wide customers increased by 25 million, home wide integrated ARPU steady; in the government and enterprise market: government and enterprise customers breakthrough 10 million, the Group's product revenue grew rapidly; in the new business market: the number of intelligent connections in the Internet of Things increased by 300 million.

According to the financial report, China Mobile's operating income in the first half of the year reached RMB 389.4 billion, down 0.6% year-on-year, of which communication services revenue reached RMB 351.4 billion, down 1.3% year-on-year; shareholders' profit attributable to RMB 56.1 billion, earnings per share was RMB 2.74 yuan, down 14.6% year-on-year.

China Mobile said in the announcement that as the traditional communication service market becomes saturated, the traffic dividend will quickly fade away. Simply relying on traditional factor input to promote performance growth is unsustainable, the industry as a whole shows negative growth, and the company's revenue and profit are also under greater pressure. .

At the subsequent performance briefing, Yang Jie, chairman of China Mobile, said that China Mobile's annual capital expenditure this year did not exceed 166 billion, down from 167.1 billion last year, of which the investment in 5G is estimated to be 24 billion yuan. “Even if 5G is considered, the total capital expenditure will not increase significantly.” Yang Jie said that 2020 to 2022 is the peak period of 5G investment, but China Mobile will control the total investment, and it is necessary to seek truth from facts and actively promote 5G. It takes time to mature technology and industry, and we must grasp the rhythm.

China Mobile pointed out that the total capital expenditure will not increase significantly in the next year, but this does not mean the attitude towards 5G. “No matter how the total investment is controlled, the proportion of 5G in total investment is still very large. This year’s 24 billion The investment is still very large. We also see the development prospects of 5G, including 2B's business and some social needs." After the 5G investment increased, China Mobile said it would significantly reduce the investment of many traditional businesses, including 4G. It will operate through 5G+4G, and open 4G in reverse by 5G to meet the needs of 4G. In addition, the next step is to reduce the unit input cost and control the overall investment."

It should be pointed out that at the beginning of this year, China Mobile executives said that the total investment including 5G in 2019 will not exceed last year (167.1 billion yuan), and the capital expenditure without 5G will be 144.9 billion yuan. In other words, the 5G investment plan for 2019 is about 17 billion yuan. From the original 17 billion yuan to the current 24 billion yuan, we can also see China Mobile's attitude and determination for 5G.

Following the decline in revenues this year, China Mobile’s interim results this year saw a decline in revenues. The revenue for the first half of the year was 389.4 billion yuan, down 0.6% year-on-year, and net profit was 56.1 billion yuan, down 14.6% year-on-year. .

Speeding up the fee and letting the profit exceed 202.6 billion yuan in the first half of the yearMobile phoneTraffic fee decreased by 61%

The revenue drop doubled, especially behind the obvious decline in profits. The continuous speed-up and fee-reduction measures have made users affordable, but they have also kept China Mobile's profitability down.

According to financial report data, in 2017, China Mobile achieved a net profit of 11.43 billion yuan, an increase of 5.02%. By 2018, net profit was only 11% to 111.7 billion yuan, while net profit for the first quarter of this year was 23.7 billion yuan, down 8.3% year-on-year. Net profit for the first half of the year was down 14.6%.

Correspondingly, the user communication fee has dropped significantly. According to statistics, the unit price of China Mobile's mobile phone Internet has dropped by 91.5%. The international long-distance direct dialing tariffs have dropped by more than 90%; the average unit price of international roaming traffic has dropped by more than 80% compared with 2015. In the first half of this year alone, mobile phone Internet access fees fell by 61% year-on-year.

At present, China Mobile's speed-up and fee reduction has benefited 4.7 billion customers, with a total profit of 202.6 billion yuan. The decline in revenue and profits in the first half of the year also proves that China Mobile is doing its best to speed up the fee reduction and return real money to users.

However, the speed increase and the increasingly fierce market competition have also brought huge operational pressure to China Mobile. China Mobile said in the announcement that as the traditional communication service market becomes saturated, the traffic dividend will quickly fade away. Simply relying on traditional factor input to promote performance growth is unsustainable, the industry as a whole shows negative growth, and the company's revenue and profit are also under greater pressure. .

Convergence development, lay a solid foundation for development

In order to cope with the negative growth trend of the industry, China Mobile is accelerating the development of integration, and the performance of kinetic energy transformation has appeared. According to the financial report, at present, the development of kinetic energy has achieved remarkable results: 2I2C users have grown rapidly, Mobi and penetration rate reached 68.7%, revenue reached 6.2 billion yuan, up 59.7% year-on-year; the solid-mobile convergence rate increased by 2.6 percentage points from the end of 2018. The total business integration rate increased by 8.6 percentage points compared with the end of 2018; the “Mobile Cloud” brand and the “Cloud+Net+DICT” intelligent service were promoted. The mobile cloud revenue increased by 126.2%, and the internal cloudization level increased significantly.

Affected by this, the number of mobile connections increased by 9.98 million, the total number of connections exceeded 935 million; the cable broadband customers increased by 18.2 million, reaching 175 million, an increase of 29.5%, the home broadband integrated ARPU increased by 0.6%; the Internet of Things intelligent connection increased 142 million, reaching 693 million, an increase of 80.6%; the monthly active users of the Mi Wei series of products grew rapidly.

At the same time, the income of the family market and government and enterprise markets maintained double-digit growth, and the proportion of income increased further. Among them, Mobaihe's revenue reached 6.2 billion yuan, a year-on-year increase of 59.7%; DICT revenue reached 13.6 billion yuan, an increase of 47.3%; Internet of Things revenue reached 5.2 billion yuan, an increase of 43.8%.

China Mobile expects that 4G users will increase by 45 million this year, ARPU will maintain industry leading position; family customers will increase by 25 million, comprehensive ARPU will rise steadily; government and enterprise customers will exceed 10 million, revenue will grow rapidly; It will increase by 300 million.

Great adjustment of institutional mechanism to take advantage of 5G to cultivate new growth momentum

On the basis of kinetic energy conversion and integration development, China Mobile will bet on the future in 5G, hoping to use 5G as an opportunity to cultivate new growth momentum.

In order to enable the company to keep pace with the development of 5G in terms of institutional mechanisms, China Mobile has begun to make bold decisions. It will not only integrate, integrate and integrate, but also promote transformation and upgrading, and build a value-based value management system based on scale. Based on synergy and vitality, we will create an efficient and coordinated organization and operation system.

It is understood that the new management system is mainly to integrate the originally separated products, personnel, data, etc., so that they can form a synergy to meet market demand, such as solid-transition integration, integration of government and enterprises and the public, and a cloud across the network.

The organizational operation system such as efficient collaboration is mainly to further optimize the operating system. In order to deepen strategic layout, integrate capacity resources, strengthen overall command, and mobilize the enthusiasm of all parties, we will complete government and enterprises.cloud service, family business, international business sector organizational operating system reform program.

Established the government and enterprise division based on the government and enterprise branch, established the cloud competence center based on the Suzhou R&D center, established the smart home operation center based on the Hangzhou R&D center, and established the headquarters international business department to accelerate the creation of cloud services and home business areas. The core ability to comprehensively enhance the overall planning and expansion capabilities of the government and enterprise market and the international market, give full play to the synergy of the headquarters, regional main battles, and professional construction, realize the dynamic combination of factors and capabilities, and create new kinetic energy for the company's revenue growth. .

On this basis, China Mobile will further stimulate the resource + capacity advantage, create a new 5G + advantage, and take advantage of 5G to expand new development space.

Through the coordinated development of 5G+4G, 5G+AICDE and 5G+Ecology realize 5G+X, accelerate the application of 5G in a wider range and more fields, integrate into the industry and serve the public.

On the one hand, for agriculture, industry, transportation, health care, cities, finance,educationIn other fields, launch innovative fusion applications to better promote digitalization of the industry;

On the other hand, for the majority of customers, the launch of 5G ultra-high-definition video, ultra-high-definition games, ultra-high-definition video ring tones, to better meet the needs of a better digital life. The company has formed more than 60 practical cases such as 5G smart grid, smart factory, smart port, closed area autopilot, emergency rescue, telemedicine, smart campus, high-definition cloud game.

China Mobile believes that 5G will allow it to lead demand in China's informatization and software services industry with a market size of 13.1 trillion in 2025, create demand, and gain new development space to achieve new growth.

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