- CNTV English - CCTV News

Homepage > News > Biz >

China Unicom posts 62% drop in H1 profits

08-27-2010 16:30 BJT

China Unicom, the nation's second-largest wireless operator, said Friday that its net profits in the first half fell 61.8 percent to 2.53 billion yuan ($371 million), dragged down by the fledging 3G business.

The company posted revenue of 82.11 billion yuan for the first half, up 7.6 percent year-on-year.

Tong Jilu, CFO of China Unicom, said the drop in profits is in accordance with expectations, as its 3G business was in the initial stage and the revenue from this sector could not cover 3G network operation and maintenance, asset depreciation and marketing costs, the China Business Daily reported Friday.

But he added the 3G business was developing fast, and the company expects to attract 30 million new 3G customers with an upcoming economic 3G package. By the end of July, China Unicom's 3G users have reached 8.5 million, doubling the number at the beginning of this year.

Bloomberg said the company's second-quarter net income fell 54 percent to 1.4 billion yuan, from 3.05 billion yuan a year earlier, deriving the figure from China Unicom's first-half earnings report, adding that China Mobile and China Telecom delivered profits this month that exceeded analysts' projections.

"Terrible numbers," Tucker Grinnan, head of Asian telecommunications research for HSBC Securities Asia, said. "Shows a real execution gap with China Telecom and China Mobile."

China Unicom, the country's only carrier selling Apple Inc's iPhone, also said that it would sell Apple's iPhone 4 and iPad tablet computer, Bloomberg reported Thursday, citing China Unicom President Lu Yimin.

Editor:Xiong Qu |Source: China Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program