Mobile growth drives up Unicom profits by 73.9%

22 Apr 2014

China Unicom, China’s second largest mobile and broadband provider by subscribers, has booked revenues of CNY76.47 billion (USD12.37 billion) for the three months ended 31 March 2014, up 8.3% year-on-year. Service revenue totalled CNY63.80 billion, representing an increase of 11.8% compared to the same period of 2013 and was buoyed by growth in the mobile segment, which expanded by 15.4% to CNY40.68 billion. Unicom claimed 289.693 million mobile subscribers at the end of March 2014, of which 132.300 million were 3G and 4G subscribers, increasing by a total of 21.1% y-o-y and 73% for 3G/4G. In the fixed segment, Unicom registered turnover of CNY22.92 billion (+5.8% y-o-y), as broadband subscribers grew by 9.1% to 66.441 million.

Meanwhile, Unicom booked total costs and expenses of CNY72.08 billion, increasing by 5.9% on an annualised basis as the telco invested in expanding its network, and further boosted by an upsurge in sales expenses. Unicom booked EBITDA of CNY24.00 billion, with an EBITDA margin of 37.6%, whilst net profits for the period improved 73.9% y-o-y to CNY3.30 billion.

China, China Unicom