China Mobile delivered mixed results for the first half of 2025, with net profit showing significant growth despite a marginal decline in revenue.

As China's telecommunications industry enters an era of market saturation and digital transformation deepens, China Mobile faces the challenge of identifying new growth drivers to sustain momentum.

On Thursday evening, China Mobile released its half-year performance report with the following key highlights:

**Financial Performance**

Operating revenue reached 543.8 billion yuan, down 0.5% year-over-year; core business revenue was 467.0 billion yuan, up 0.7% year-over-year.

Net profit attributable to shareholders totaled 84.2 billion yuan, representing a 5.0% year-over-year increase; EBITDA reached 186.0 billion yuan, up 2.0% year-over-year.

Interim dividend of HK$2.75 per share, up 5.8% year-over-year, with the full-year cash dividend ratio further enhanced.

Net cash flow from operating activities fell sharply to 83.8 billion yuan, down 36.2% year-over-year.

**Core Business Progress**

Enterprise market revenue reached 118.2 billion yuan, up 5.6% year-over-year; DICT, IoT, and 5G private network services delivered strong performance in industry digitalization (digital transformation revenue of 156.9 billion yuan, up 6.6% year-over-year).

International business revenue hit 14.0 billion yuan, up 18.4% year-over-year; emerging markets including digital content and fintech achieved high growth rates of 9.3%-24.5%.

Mobile cloud revenue reached 56.1 billion yuan, up 11.3% year-over-year, establishing itself as the group's second growth pillar.

**Traditional Businesses Continue Under Pressure**

China Mobile's 2025 interim report presents a "steady progress with underlying concerns" scenario.

From a financial perspective, the company's fundamentals remain solid: net profit of 84.2 billion yuan grew 5.0% year-over-year, with EBITDA margin maintained at an industry-leading 39.8%, demonstrating strong profitability.

However, revenue performance was less satisfactory. Operating revenue of 543.8 billion yuan declined 0.5% year-over-year, marking a rare negative growth in recent years.

Deeper analysis reveals persistent pressure on traditional businesses: voice service revenue fell 5.7% to 34.2 billion yuan; wireless internet service revenue dropped 4.7% to 195.5 billion yuan. This trend reflects the deep-seated challenges of industry transformation, with traditional communication demand reaching saturation, forcing operators to accelerate their search for new growth momentum.

As the user base approaches its ceiling, the pressure to upgrade revenue structure intensifies. After the end of the "traffic dividend" era, value creation and differentiated services have gained greater importance.

**Digital Transformation Shows Results, Mobile Cloud Revenue Up 11.3%**

Facing pressure from declining traditional businesses, China Mobile's digital transformation strategy is beginning to show results.

Most notably, digital transformation revenue reached 156.9 billion yuan, up 6.6% year-over-year, accounting for 33.6% of core business revenue, an increase of 1.9 percentage points compared to the same period last year.

Among segments, the enterprise market performed particularly well. Enterprise market revenue reached 118.2 billion yuan, up 5.6% year-over-year, with mobile cloud revenue of 56.1 billion yuan growing 11.3%.

More remarkably, 5G private network revenue hit 6.1 billion yuan, surging 57.8% year-over-year, demonstrating robust growth in enterprise digitalization demand. This rapid development of B2B business not only brings revenue increments but, more importantly, enhances the technical content and profitability of operations.

**Operating Cash Flow Declines Significantly, Financial Quality Warrants Attention**

Despite overall stable performance, some financial details deserve investor attention.

For instance, net cash flow from operating activities of 83.8 billion yuan fell sharply by 36.2% year-over-year, primarily due to the company accelerating payment schedules to support industry chain development.

Additionally, accounts receivable balances reached 105.8 billion yuan at period-end, up 39.7% from the beginning of the period, mainly from enterprise business. While this seasonal fluctuation is normal given that enterprise clients typically concentrate payments at year-end, subsequent collection performance still requires monitoring.

From a cost control perspective, the company's core business costs increased only 0.1%, well below revenue growth rates, reflecting effective refined management. Both selling expenses and administrative expenses declined, indicating continued operational efficiency improvements.