Unicom: 3G expenses hurt bottom line

27 Apr 2011

In the first three months of 2011 China Unicom recorded a turnover of RMB49.03 billion (USD6.6 billion), of which telecommunications service revenue was RMB43.22 billion. Revenue from its mobile business generated RMB28.42 billion in the first quarter ended 31 March 2011, a 42% increase on the same period of 2010, while fixed line operations earned RMB20.36 billion, up 0.7% on the same basis. Net profit for the quarter crashed, however, to RMB166 million from RMB1.2 billion in Q1 2010, as a result of burgeoning operating expenses, predominantly related to the cost of 3G handset subsidies. At the end of the quarter Unicom claimed 18.535 million 3G users, on top of 156 million 2G subscribers, 49.8 million broadband customers and 96.5 million fixed lines.

China, China Unicom