China Mobile, the world's largest telecommunications company by subscriber, reported declining profits for the fifth consecutive quarter, and a drop in sales for the first time in five years.

Sales for the quarter declined 2 percent to 156.6 billion yuan ($25.6 billion), from 160 billion yuan a year earlier. The company reported operating revenue of 481.24 billion yuan ($78.6 billion) for the first nine months of 2014.

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Net income fell 12 percent to 24.9 billion yuan ($4.1 billion) in the third quarter, according to figures derived from nine-month results the Beijing-based company reported yesterday. That failed to meet the expectations of 26 billion yuan from  estimates compiled by Bloomberg News.

Net income for the first three quarters of 2014 fell 9.7 percent to 82.6 billion yuan from a year earlier. China Mobile also reported a steep 20.2 percent fall in text messages from the same period the previous year.

China Mobile says it t had nearly 800 million subscribers at the end of September, including 244.5 million users of third-generation services, and 40.95 million on its new 4G network.

Net income is expected to continue to fall due to the increasing costs of rolling out its 4G network. The firm is doubling its capital spending to $12 billion this year for the upgrade. The company is required to cut $2 billion in smartphone subsidies after the government ordered carriers in July to lower spending and increase profits.

TagsChina mobile profits fall, China Mobile, China Mobile reports drop in sales