Home / Business / Companies

China Unicom's profits plunge as it battles competition

By Dai Tian | | Updated: 2017-03-16 14:22

Increasing competition has hit the country's major telecommunications company China Unicom which has reported a 94 percent plunge in net profits to 625 million yuan ($90.7 million).

The carrier's annual report, released on Wednesday, shows revenue slipped 1 percent last year, while operating costs rose 2 percent.

The report attributed the lackluster year to "acute challenges from market competition".

Service revenue "bottomed out" before picking up 2.4 percent year-on-year to 241 billion yuan.

In the report, China Unicom says it will continue to focus on its 4G network with subscribers reaching 60.2 million an increase from 42.05 million a year earlier.

The company added 337,000 4G base stations to its network, taking the total to 736,000.

"China Unicom has braced short-term profit pressure to drive long-term sustainable development," chief executive officer Wang Xiaochu said.

He added that the company will strive to pay a dividend for the year 2017.

China Unicom is the first among the three telecom carriers in China to release its full-year results for 2016.

China Mobile and China Telecommunications are scheduled to release their annual reports next week.

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349