China Unicom 2012 profit jumps by two-thirds (Update)

Mar 21, 2013

China Unicom Ltd., the country's second biggest mobile phone company by subscribers, said Thursday that 2012 profit jumped by more than two-thirds as revenue from third-generation mobile services surged despite stiff competition.

The Beijing-based company said it earned 7.1 billion yuan ($1.1 billion) last year, up 68 percent from 4.3 billion yuan in 2011.

The company's revenue rose 19 percent to 249 billion yuan ($40 billion). Revenue from 3G services jumped more than 80 percent to about 60 billion yuan.

Unicom, which was the first Chinese carrier to offer the iPhone, said revenue grew rapidly as it expanded its 3G and fixed line broadband internet services.

The company expanded its 3G network to cover almost all towns in central and eastern China, where most of the population lives, and some towns in the west. It also became more efficient at sales and marketing as it spent less on subsidies for mobile phone handsets.

The company's upbeat results come amid intense competition for customers with state-owned rivals. China Telecom, which last year became the second Chinese carrier to offer the iPhone, said Wednesday that 2012 profit fell 9.5 percent because of higher marketing costs. China Mobile reported last week the profit rose just 2.7 percent.

Chinese phone carriers have faced tougher conditions since the government restructured the telecom industry in 2008 into three groups, each with mobile and fixed-line businesses. Beijing's aim was to revive competition after China Mobile became too dominant.

Unicom said it added 20 percent more mobile subscribers last year, bringing the total to 239.3 million, with about three-quarters of them signing up for 3G service.

Explore further: Alibaba surges in Wall Street debut (Update)

More information: Online: www.chinaunicom.com/

not rated yet
add to favorites email to friend print save as pdf

Related Stories

China Telecom profit down 8.3 percent

Aug 22, 2012

(AP) — China Telecom Ltd., one of the country's three major state-owned phone carriers, said Wednesday its first-half profit fell 8.3 percent amid intense competition and high technology costs.

China Telecom profit falls 9.5 percent

Mar 20, 2013

State-owned China Telecom Corp. said Wednesday that profit fell 9.5 percent last year because it spent more to market the iPhone as it battled rivals for higher-paying customers.

China Mobile 1H profit rises to $9.6 billion

Aug 18, 2011

(AP) -- China Mobile Ltd., the world's biggest phone company by subscribers, said Thursday its first-half profit rose 6.3 percent as sales were boosted by greater usage of mobile Internet devices.

China Mobile 2012 profit rises just 2.7 percent

Mar 14, 2013

China Mobile Ltd., the world's biggest phone carrier by number of subscribers, said Thursday that profit rose just 2.7 percent last year as it grappled with fierce competition and higher costs.

China probes telecom giants for internet monopoly

Nov 09, 2011

A Chinese government agency is investigating two telecommunications giants for allegedly monopolising Internet broadband services, state media said Wednesday, in an unusual public spat.

Recommended for you

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0