China Mobile first quarter net profit up 1%, missing forecasts

China Mobile, the world's largest mobile operator by subscribers, reported a 1% rise in quarterly profit, lagging expectations, as hefty handset subsidies and a maturing home market affected profits.                                           

The company posted a profit of 25.48 billion yuan ($3.7 billion) for the first quarter, up slightly from 25.2 billion yuan a year earlier. The result was worse than the average forecast of 27 billion yuan from four analysts polled by Reuters.                                           

Monthly average revenue per user, or ARPU, fell to 70 yuan from 77 yuan in 2009.                                           

China Mobile shares are up about 10% so far this year versus a 1% decline for the Hang Seng Index.