China Unicom said it expects its service revenue for the first half of 2017 to reach CNY 124.1 billion, which represents an increase of 3.2 percent year-on-year. Mobile service revenue is expected to be around CNY 76.8 billion, up by 5.2 percent year-on-year. Due to the intense competition in the fixed-line broadband market, China Unicom estimates its broadband access revenue fell year-on-year, resulting in flat fixed-line service revenue of nearly CNY 46.6 billion.
Including the sales of telecommunications products, the group reported total preliminary revenue for the first half of 2017 of CNY 138.2 billion, down by 1.5 percent year-on-year. Operating costs of CNY 133.5 billion were down 2.5 percent year-on-year, helping EBITDA grow 5.5 percent to CNY 43.6 billion. The EBITDA margin was 35.1 percent. Profit for the first half of 2017 is expected to reach CNY 2.4 billion, up by 68.9 percent year-on-year.
China Unicom did not give a reason for the strong increase in profit. The company said results will come under pressure in the second half of the year from the planned end of long-distance and roaming charges in China from September and intensifying competition.
