Earnings Call Excerpt
China Mobile Limited (CHL)
FY07 Earnings Call
March 19, 2008, 12:30 AM ET
Executives
Wang Jianzhou - Executive Director, Chairman and CEO
Li Yue - Executive Director and VP
Lu Xiangdong - Executive Director and VP
Xue Taohai - Executive Director, VP and CFO
Madam Xin Fanfei - Executive Director and VP
Analysts
Presentation
Operator
Ladies and gentlemen, good afternoon, welcome to the analyst briefing of 2007 annual results announcement of China Mobile Limited. In today's analyst briefing, the management will first present the results, which then will be followed by a Q&A session.
Please allow me to introduce our management members here today. Mr. Wang Jianzhou, Chairman and Chief Executive Officer; Mr. Li Yue, Executive Director and Vice President; Mr. Lu Xiangdong, Executive Director and Vice President; Mr. Xue Taohai, Executive Director and Vice President and Chief Financial Officer; Madam. Xin Fanfei, Executive Director and Vice President.
Now may I invite Chairman Wang to introduce the annual results of 2007. Mr. Wang, please.
Wang Jianzhou - Executive Director, Chairman and Chief Executive Officer
Thank you, Dong Ge [ph]. Good afternoon, ladies and gentlemen, thank you very much for coming to our 2007 annual results announcement briefing. Our presentation includes two parts, overall performance and financial results in 2007.
Overall performance. We're happy to announce a set of remarkable results for 2007. Revenue grew 20.9%; net profit, up 31.9%. Rapid subscriber growth sustained with an average monthly net adds exceeding 5.67 million. Value-added business developments were strong. Proportion in total revenue rose to 25.7%. Rural market exhibited a strong growth momentum, contributing nearly half of the subscriber growth. Full year dividend for 2007 was HK$1.997 per share. Full year special dividend was HK$0.101 per share.
2007 marks another year of record-breaking results as shown in the table compared with 2006. Our total subscribers reached 369 million, increased by 22.6%. Operating revenue grew 20.9% to 357 billion yuan. EBITDA, up 21.6% to 194 billion yuan. EBITDA margin continued to stand at a high level of 54.3%. Net profits grew 31.9% to 87 billion yuan. Net profit margin enhanced by 2 percentage points to 24.4%. Basic EPS increased by 31% to 4.35 yuan.
Our subscriber base continued its rapid expansion. Net adds exceeded 68 million with a market share of 79%. Total subscribers reached 369 million, picking up 69% of the whole market. While we continued to see growth in the affluent eastern region, significant results were achieved in realizing market potential in the central region, and the western region was even more pronounced. Subscriber base further expanded. Our strong growth momentum has furthered into 2008 with net adds hit 7 million in this January for the first time.
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