China Unicom reports drop in sales and profits for 2015

17 Mar 2016

China Unicom has reported a 2.7% year-on-year drop in revenue for full year 2015 to CNY277.0 billion (USD43.6 billion), while EBITDA fell 5.7% to CNY87.5 billion and net profit declined 12.4% to CNY10.6 billion. The firm blamed the falls on a ‘challenging business environment’ caused by factors including pricing pressures, intensifying competition and VAT reforms. The telco says it is looking to push ahead with the deployment of 4G mobile infrastructure and says it will focus resources on the next generation build-out ‘to fuel mobile business momentum’. Unicom claimed 252.32 million mobile customers at the end of 2015, a drop of 14.26 million in twelve months; the 4G user base rose to 44.16 million, up from around six million a year before.

On a slightly brighter note, the company’s fixed line broadband service revenue grew by 7.5% year-on-year to CNY53.96 billion, and its broadband subscriber base increased by 5.1% to 72.33 million, with fibre-to-the-home (FTTH) subscribers now accounting for more than half of all fixed internet users.

China, China Unicom