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China Unicom Q1 2011 Profit Down 86% YoY

China Unicom PR, 4/26/11

China Unicom (NYSE: CHU; 0762.HK; 600050.SH) has released its unaudited, condensed and consolidated results for the three months ended March 31, 2011, with total revenue reaching RMB 49.03 bln, up 21.2% YoY excluding the effect of deferred fixed-line upfront connection fees.

Net income for the period was RMB 166 mln, down 86.3% YoY from RMB 1.21 bln in Q1 2010.

Revenue from telecommunications services was RMB 43.22 bln, up 11.9% YoY excluding deferred fixed-line upfront connection fees.

Revenue from the mobile business rose 42% YoY to reach RMB 28.42 bln. Telecommunications service revenue from the mobile business was RMB 23.29 bln, up 25% YoY. Of this total, telecommunications service revenue from the 3G business was RMB 5.68 bln, increasing from 8.5% of total telecommunications service revenue from the mobile business in Q1 2010, to 24.4% in Q1 2011. Monthly average minutes of usage (MOU) per subscriber was 283 minutes, and monthly average revenue per user (ARPU) was RMB 45.5. For 3G users, MOU per subscriber was 630.8 minutes and ARPU was RMB 117.2.

Revenue from the fixed-line business was RMB 20.36 bln (excluding upfront connection fees), up 0.7% YoY. Telecommunications services revenue from the fixed-line business (excluding upfront connection fees) was RMB 19.92 bln, up 0.1% YoY. Telecommunications service revenue from the broadband business was RMB 8.44 bln, up 18.4% YoY. ARPU for the broadband business was RMB 58.

For Q1 2011, total costs and expenses and others, including finance costs, interest income and other income-net, were RMB 48.79 bln, up by 25.3% YoY. Depreciation and amortization were RMB 14.06 bln, an increase of RMB 0.89 bln or 6.8% YoY. Networks, operations and support expenses were RMB 6.84 bln, an increase of RMB 0.61 bln or 9.8% YoY. Selling expenses were RMB 6.79 bln, an increase of RMB 1.10 bln or 19.3% YoY. Cost of telecommunications products sold was RMB 7.18 bln, up by 392.1% YoY. Loss on the sale of telecommunications products was RMB 2.04 bln, of which, loss on the sale of 3G handsets (“3G handset subsidy cost”) was RMB 1.90 bln, an increase of RMB 1.80 bln YoY.

To view Unicom's full earnings statement, please click here.

Keywords: China Unicom ARPU fixed-line broadband profit revenue telecom 3G 0762.HK 600050.SH CHU Q1 2011 fiscal report subsidey handset


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