China Mobile 2009 net profit up 2.3%

China Mobile (0941.HK, CHL.NYSE) reported yesterday that profit growth in 2009 slowed to 2.3% from 30% in 2008 and that will cut capital spending over the next three years to maintain profitability, Dow Jones reported. Earnings growth has been slowed by increasing competition for China Unicom (0762.HK, CHU.NYSE) and China Telecom (0728.HK, CHA.NYSE). High expenditures on marketing and depreciation for third–generation mobile services (3G) will also put downward pressure on profits. China Mobile Chief Financial Officer Xue Taohai also said that low-income subscribers in rural areas and mobile tariffs are also trending down. Net profit for the 12 months ended December 31 was US$16.87 billion.