China Mobile’s (CHL) net income rose 23% to $8.5 billion for 2006. By way of contrast, Sprint’s (S) did $247 million in its last quarter, for an annual run rate of less than $1 billion.
The amazing thing about China Mobile was that its subscriber count rose 22% to 301 million customers. The size of the Chinese population obviously helps.
There was a cautionary note in the earnings announcement. Growth in China’s large cities is beginning to slow as these markets reach saturation. That means that the company will be looking to rural customers, who are likely to use phones less, for its future growth.
That may not be good.
Douglas A. McIntyre
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