Unicom’s 9M net profit up 11.9% boosted by subscriber gains

22 Oct 2019

Chinese full-service provider China Unicom has reported its financial results for the nine months ended 30 September 2019, highlighting total service revenue of CNY198.53 billion (USD28.05 billion), down 0.7% year-on-year, EBITDA of CNY73.15 billion (up 10.4%) and net profit attributable to shareholders of CNY9.82 billion (up 11.9%). The operator noted that in the nine-month period it faced ‘new challenges in the industry’ as it looks to deepen the execution of its ‘Strategy of Focus, Innovation and Cooperation’ and accelerate ‘the Internet-oriented transformation’. Revenues derived from Internet services amounted to CNY24.29 billion, a significant 40.8% improvement on an annualised basis. Going forward, the group intends to ‘create a new paradigm featuring China Unicom’s “Five New” establishment and high-quality sustainable growth, with consistent effort to enhance inherent corporate vibrancy and operating efficiency for greater shareholders’ value’.

Unicom reported a total of 324.729 million mobile subscribers at the end of September 2019, including 251.145 million 4G users, up from 309.826 million and 213.850 million respectively at end-September 2018; mobile ARPU improved slightly quarter-on-quarter to CNY40.6 from CNY40.4. Meanwhile the cellco notes that it continues to leverage its 900MHz spectrum to further improve in-building and rural LTE coverage, and stepped up efforts in what it terms ‘Internet-oriented transformation on products, channels and marketing’. Elsewhere, the company reported a total of 84.445 million fixed broadband subscribers – up from 80.347 million twelve months earlier – and a fixed line telephony user base of 54.247 million, down a net 2.578 million y-o-y.

China, China Unicom