Full-service provider China Unicom has registered an increase of 192.5% in its annual net profit, which reached CNY1.8 billion (USD284.8 million), compared to CNY625 million in 2016. The telco attributed the growth to its ‘Strategy of Focus, Innovation and Cooperation’, which saw the company focus increasingly efficiencies and included a 41.6% reduction CAPEX to CNY42.1 billion. Operating and service revenue increased by 0.2% and 4.6% year-on-year, to CNY274.8 billion and CNY249.0 billion, respectively, whilst EBITDA grew by 2.4% y-o-y to CNY81.4 billion.
Unicom notes that it has promoted a transformation in its mobile business model, accelerating growth in its user base via a low cost subsidy model, whilst ‘enhancing the quality’ of its new subscribers through innovating products and marketing. As a result, the operator was able to add a total of more than 20 million net new users during the year, whilst also increasing ARPU to CNY48 (+3.5% y-o-y). Mobile service revenue, meanwhile, grew by 7.9% to CNY156.4 billion. At the end of December 2017, Unicom counted a total of 284.2 million wireless subscribers, including 174.9 million LTE users, up from 266.3 million and 122.7 million, respectively, a year earlier.