World's largest mobile operator feels the heat, despite a 26 per cent rise in earnings.
China Mobile has posted 3Q08 profit up 26 per cent to 27.8 billion yuan, short of the 29 billion yuan expected by analysts.The company's stock slumped 3.8 per cent in Hong Kong trading, meaning its share price has fallen 51 per cent this year.
Analysts put the short fall down lower consumer expenditure in the current economic climate, despite China Mobile cutting prices.
JP Morgan Chase's Jimmy Cheong said: "It's a worrying trend if usage and demand trends are not growing as quick as or keeping pace with the tariff declines."
DBS Vickers' Steven Liu said: "The Chinese economy is feeling the fallout of the US financial crisis and we can now see that reflected in China Mobile's earnings."
Advertisement
