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China Mobile misses profit estimates

China Mobile (0941.HK) missed analyst estimates for third-quarter profits, blaming increased competition for smart phone subscribers and thinner profit margins, Bloomberg reported. Profits rose 3.7% compared to a year earlier to US$4.8 billion but failed to reach the forecasted US$5 billion. Sales increased 8.9% to US$20.9 billion to barely beat analyst estimates. China Mobile stock fell to HK75.25, a drop of 1.25%, following the announcement. Net profit margins declined to 24% down from 25%. China Mobile faces stiff competition from China Unicom (0762.HK) and China Telecom (CHA.NYSE) for a shrinking pool of new users. Jim Tang, an analyst at Shenyin Wanguo Securities, said growth will be increasingly difficult to maintain in the future and investors should expect a slowdown in profit and revenue.

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