China Unicom 2010 results – Revenue up 11%

China Unicom grew its 2010 revenue by 11.3 percent to CNY 171.30 billion from CNY 153.95 billion in 2009. China Unicom recorded EBITDA of CNY 59.59 billion, up 2.2 percent. However, due to network expansion and the initial stage of the 3G business operation, the company continued to face pressure on profit. Profit for the year was CNY 3.85 billion, a decline of 55 percent compared with CNY 9.56 billion. Basic earnings per share stood at CNY 0.163. Capex for the year was CNY 70.19 billion, down 37.6 percent year-on-year. The board recommends the payment of a final dividend of CNY 0.08 per share.

The mobile business posted a revenue of CNY 82.36 billion, up 18 percent. Revenue from non-voice services accounted for 32 percent of total mobile revenues, up 4.4 percentage points. Unicom ended the year with 167.426 million mobile subscribers, an increase of 13.4 percent. Overall ARPU was CNY 43.7, up 5 percent. The company’s 3G business generated revenue of CNY 11.59 billion as China Unicom signed-up 11.32 million subscribers to reach a total of 14.06 million 3G customers. ARPU for the service stood at CNY 124.

China Unicom’s fixed-line business generated revenue of CNY 78.70 billion, down 0.4 percent. However, for the first time, non-voice revenues exceeded voice revenues and accounted for 55.2 percent of total fixed-line revenue. The fixed-line broadband business contributed revenue of CNY 29.82 billion, up 24.8 percent from last year. The company ended the year with 47.22 million broadband customers, up 22.5 percent, and broadband ARPU stood at CNY 57.1, in line with a year earlier. Furthermore, the decline in the fixed voice business slowed down. Fixed-voice revenue totalled CNY 40.12 billion, down by 13.3 percent. China Unicom lost 6.19 million fixed-voice customers and ended the year with a total of 96.64 million. Of the total customers lost, 5.32 million were PHS customers. Local telephony ARPU was CNY 28.9, a decline of 8 percent.