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China Mobile profit lifted by economic growth
China Mobile, the world's largest mobile phone operator, said Thursday that the "healthy momentum" of the Chinese economy boosted its profits in the first half of the year.
The company earned 57.64 billion yuan (8.48 billion US dollars) in the six months ended June 30, up 4.2 percent from 55.33 billion yuan in the same period last year, it said.
"The Chinese economy continued to show healthy momentum in the first half of 2010, which provided a positive environment for China Mobile’s business development," company chairman Wang Jianzhou said in a statement.
"However, we also faced numerous external challenges, including high and increasing mobile penetration rates and intensifying industry competition."
The company will continue to tap the rural and migrant worker market which "are showing great growth potential," Wang said.
Sales rose 7.9 percent to 229.82 billion yuan, up from 212.91 billion yuan last year as the company added almost 32 million new customers in the first half of 2010, for a total of 554 million users, the statement said.
China's double-digit economic growth has the nation on track to become the world's number two economy this year behind the US -- a claim held by Japan for four decades.
The country has already claimed the titles of world's top exporter, auto market and steelmaker.
China Mobile was also working to sell customers on so-called "value-added" services, such as wireless music, gaming and video applications, he said, adding that they were as the major driving force of revenue growth.
The mobile giant announced earlier this month that it had signed a framework agreement with China's official Xinhua news agency to set up a search engine.
China's search market was worth 2.67 billion yuan (393 million dollars) in the second quarter, up 48 percent year on year.
The number of web users in China now stands at around 420 million, according to official figures released in July.
China Mobile shares closed three percent lower at 81.75 dollars (10.52 US) in Hong Kong.
