Unicom earns $1.2b for quarter
Red chip China Unicom recorded a 1.29 billion yuan (about HK$1.21 billion) net profit on 15.98 billion yuan in revenue for the three months to March.
It was the first set of quarterly earnings results issued by the telecoms carrier and was the first set of results that included mobile operations in nine provinces acquired at the end of last year.
The No 2 cellular carrier said its GSM mobile network operation from its 21 provinces generated 10.03 billion yuan in revenue and 2.07 billion yuan in net profit during the three months.
Losses from its CDMA mobile networks operation in its 21 provinces narrowed to 210 million yuan while revenue came in at 3.41 billion yuan. The carrier booked 1.53 billion costs related to the amortisation expenses from CDMA handset subsidies.
In the second half of last year, China Unicom recorded a 385 million yuan loss from its CDMA mobile operations in its original 12 provinces.
Dragged down by losses from its CDMA mobile operation, the carrier saw its ebitda margin decline to 41.2 per cent, compared with the 45.8 per cent recorded last year.