China Mobile Q1 profit rises on game and music demand

China Mobile (CHL.NYSE, 0941.HK) posted a 5.4% profit increase in the first quarter, boosted by mobile games and internet music downloads, Bloomberg reported. The firm passed the 600 million subscriber mark in the first quarter after adding 3% more from the fourth quarter of last year, solidifying its position as the world’s largest carrier by subscriber number. However, the bulk of the firm’s revenue comes from high-end smartphone users. “The subscriber number is pretty good. It’s mostly low-end subscribers, which is why you see single-digit profit growth,” said Jim Tang, an analyst with Shenyin Wanguo Securities. China Mobile Chairman Wang Jianzhou said that data business will be a driver of future growth, with the firm planning to increase spending by 6.5% this year to improve its services.