China Mobile's semi -annual report is happy and worried: emerging markets have grown rapidly, 5G ARPU value decreases

21st Century Business Herald Reporter Lei Chen intern Li Yuchen Beijing reported

On the evening of August 11, China Mobile (600941.SH) released the 2022 semi -annual report. In the first half of the year, the operating income achieved 496.9 billion yuan, an increase of 12%year -on -year; the net profit of the mother -in -law was 70.275 billion yuan, an increase of 18.9%year -on -year.

It can be seen from the semi -annual report that when the traditional business tends to be saturated, digital transformation has injected new vitality into performance. At the same time, in order to promote more users to relocate 5G, the company's 5G ARPU value decreased.

From the perspective of fund holdings, the organization has certain confidence in China Mobile as a whole. Dongcai Choice data shows that as of the end of the second quarter of 2022, China Mobile received a total of 43 fund holdings, with a total shareholding of 62.6561 million shares. Although it is less than the first quarter, it still improves compared with 53.934 million shares at the end of 2021.

Emerging market growth rapidly

The semi -annual report shows that in the first half of 2022, the communication service revenue of China Mobile's main business reached 426.4 billion yuan, an increase of 8.4%year -on -year; other business revenue reached 70.5 billion yuan, a year -on -year increase of 39.8%.

In terms of personal markets, China Mobile's revenue increased by 0.2%year -on -year to 256.1 billion yuan. Compared with the same period last year, it slowed down, and its proportion in communication services also dropped to 60%.

Compared with the weak growth of traditional businesses, the company's digital transformation business became the main force to drive new performance growth in the first half of 2022.

Specifically, digital transformation income includes new personal market business (mobile cloud disk, etc.) income, home market smart home value -added business income, government -enterprise market DICT revenue, IoT revenue, special line income, and emerging market revenue.

Thanks to the rapid expansion of the information service business such as digital content, smart family, 5G vertical industry solutions, and mobile clouds, China Mobile's digital transformation revenue in the first half of the year was 110.8 billion yuan, an increase of 39.2%year -on -year 26%.

Among them, the government -enterprise market revenue accounts for about 60 %. In the first half of the year, the market revenue of the government and enterprise remained rapidly growing, reaching 91.1 billion yuan, an increase of 24.6%year -on -year. The number of government -enterprise customers reached 2.12 million, with a net increase of 2.29 million.

The emerging markets including the four major sectors of international business, equity investment, digital content, and fintech. As a track for China Mobile's innovative layout, the company has contributed the largest contribution to the company's revenue growth in the first half of the year, with a year -on -year increase of 36.5%to 19.9 billion yuan. The revenue of digital content reached 11.6 billion yuan, an increase of 50.6%year -on -year, and the growth rate was innovative.

According to the company, in the next stage, the company will focus on the three aspects of "improving high -quality network perception, creating high -performance product experience, and providing high -efficiency contact services". For example, to deepen the coordination of international and domestic markets, provide "industrial+capital" collaboration, build an intellectual transformation ecosystem, etc.

China Mobile Chairman Yang Jie said on the 11th phone meeting that the company is expected to maintain rapid growth throughout 2022.

Judging from the strategic direction disclosed by the semi -annual report, the digital transformation of the four major market businesses in China has already arrowed on the string, but the specific development direction is different.

For example, in the second half of the year, China Mobile's development focus on the personal market and family market will be "extended from scale to value", while the government -enterprise market and emerging markets are opposite, entering the stage of "extending from value to scale".

5G ARPU value decreased

In the semi -annual report, the decline of the company's 5G ARPU (the average income of each user) has attracted the attention of investors.

In the first half of the year, the 5G ARPU value of China Mobile was 85 yuan, a year -on -year decrease of 4.4%.

Regarding this phenomenon, Jian Qin, deputy general manager of China Mobile, stated in the performance communications telephone number on the 11th that the decline in the 5G ARPU value was mainly due to the absorption of some of the ARPU value customers with some low -end levels to 5G. But the ARPU value can still be improved before and after the 5G package.

It is understood that the number of daily live users of China Mobile's 5G news is 16 million, the number of terminals supports 135, and a total of 2135 applications are online, but still based on TOB applications.

"At present, our pilot is mainly in terms of epidemic prevention and immunity and the campus market." Jian Qin pointed out, "The focus of our future efforts is that one is the continuous enrichment of the ecology, and the other is to speed up the support of the terminal."

In the next step, China Mobile will further increase the 5G network coverage, enrich 5G applications, and release customer traffic, thereby achieving improvement before and after the relocation of 5G ARPU.

On the whole, the 5G message business is an important contributor to the growth of China Mobile in the first half of the year.

In the first half of the year, the company's mobile customers were 970 million households, with a net increase of 12.96 million; the number of 5G package customers was 511 million, a net increase of 124 million.

In terms of related layout, China Mobile stated that the company's 5G investment in the first half of the year completed 58.7 billion yuan, an additional 5G base station exceeding 250,000 stations, and a total of one million stations. Essence

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