China Mobile Ltd. rose in Hong Kong trading after the world’s biggest carrier reported increasing adoption of its fourth-generation services in the first quarter.
The carrier jumped as much as 7 percent to HK$115.30, the highest intraday since April 9. The shares traded at HK$115.10 as of 10:41 a.m. in Hong Kong.
Users shifting to 4G, which offers higher data speeds, helped the carrier add 8.75 million users in the first quarter, China Mobile reported Monday in its first quarter results. Declines in average revenue per user have now hit bottom, according to Anand Ramachandran, an analyst at Barclays Plc.
“Rising 4G adoption should sustain ARPU rises and thus revenue momentum,” Ramachandran wrote in a report to clients. “Rekindled momentum from 4G should allow China Mobile to return to growth.”
Net income dropped 5.6 percent to 23.8 billion yuan ($3.8 billion) in the first quarter, the Beijing-based company reported Monday. Sales rose 3.9 percent to 160.9 billion yuan.
The carrier reported 815.4 million subscribers as of the end of March. That included 143.1 million users of its 4G network and 234.8 million on its 3G network.
Average revenue per user was 59 yuan a month, up from 58 yuan reported in the fourth quarter, the company said.
