What To Expect From China Mobile’s 2017 Results

by Trefis Team
China Mobile
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China Mobile (NYSE:CHL), the largest Chinese wireless carrier, is expected to publish its full-year 2017 results in mid-March. We expect the company to post year-over-year growth in revenues and earnings, driven by its recent wireless and wireline broadband subscriber additions, soaring data consumption and a continued migration of subscribers to higher-ARPU 4G services. Below, we take a look at some of our expectations for the company’s full-year results. We have created an interactive dashboard that outlines our expectations for China Mobile over 2017. You can modify the charts with blue dots to arrive at your own estimates for the company’s revenues and earnings.

China Mobile’s wireless user base should continue to post growth, although voice revenues will continue to trend lower, driven by substitution by OTT services and lower voice tariffs.

Meanwhile, a higher mix of 4G users and higher data consumption should drive growth for the wireless data business. And while the carrier’s overall data ARPU will rise, its 4G ARPU may see some pressure due to the Chinese government’s speed increase and tariff reduction requirements. As a result of this, as well as some other costs and investments, the carrier’s margins could also face some pressure.

China Mobile should also continue to gain share in the broadband market, driven by aggressive pricing and an expanding footprint. As a result of this and the aforementioned factors, the carrier’s revenues should post modest growth over the year, while we expect some improvement in EPS as well.

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