China Mobile Network Costs Mean First Net Drop Since ’99
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China Mobile Ltd., the world’s largest phone company by users, may post its first annual profit drop in 14 years as its state-owned parent shifts costs that will boost the unit’s capital spending 49 percent.
China Mobile is projected to report a 2.1 percent drop in net income this year to 126.6 billion yuan ($20.4 billion), the average of 33 analysts’ estimates compiled by Bloomberg. The company, which listed in Hong Kong in 1997, hasn’t posted an annual profit decline since a write off on equipment triggered a 30 percent drop in 1999.