China

China Unicom Posts 88.3% Increase in Net Profit for Q1 2017

Summary:

  • In a statement to the Shanghai Stock Exchange, China Unicom (CHU.NYSE/600050.SS/0762.HK) has posted a RMB 274.26 million net profit for the first quarter of 2017, up 88.3% from the same period of 2016.
  • Revenue decreased 1.9% compared with the same period of the previous year to RMB 69 billion.
  • EPS for Q1 2017 was RMB 0.0129.

Why It Matters:

  • After deducting non-recurring income and losses, China Unicom posted a RMB 320 million net profit for the first quarter, up 74.3% year-over-year.
  • Operating expenses for the first quarter were down 4.5% compared with the same period of 2016 to RMB 51.773 billion. Of these expenses, marketing expenses¬†declined 4.2%; administrative expenses increased 9.5% primarily due to an increase in key employees’ salaries;¬†financial expenses increased 14% due to an increase in debt.
  • In the first quarter, the number of China Unicom’s mobile network users increased by 2.443 million to 266 million; of these users, the number of 4G users increased 18.175 million to 123 million, and the number of broadband users increased by 1.353 million to 76.589 million.