China Unicom released the financial report for 1Q16 on April 21st.
The report shows that China Unicom achieved CNY 70.34 billion revenue in Q1, a decline of 5.3% year-on-year and a 8% month-to-month increase. China Unicom just got CNY 480 million net profit, reducing by 84.8% year-on-year.
China Unicom revealed the reasons of the profit decline as followed: the sales expense has risen by 15.7% compared with the same period last year; the increased use fee of towers and cost input including energy and rents made the cost of network, operation and support grew by 36.6% year-on-year.
In the aspect of subscribers, China Unicom has achieved initial success in rescuing its business. China Unicom has added 6.61 million mobile subscribers with expenditure, reversing several months of declining mobile subscribers. Its 4G subscribers increased by 15.15 million. Its mobile services fell by 1.2% to CNY 36.2 billion, rising 9.3% compared with 4Q15.
China Unicom added 1.08 million fixed network subscribers in Q1, taking its fixed network base to 73.41 million, of which the revenue has increased by 4.1% year-on-year.
According to the report, China Unicom's service revenue has achieved CNY 60.84 billion in 1Q16, indicating a 1% year-on-year growth and a 9.6% increase compared with 4Q15.