Company Reports

China Unicom is one of two original fixed-line telephone companies in China, each with its own traditional territory. It is also the third-largest wireless operator in the country, which had generated the majority of its growth until the past few years when computing and digital smart applications, or CDSA—internet data centers, ICT consulting services, and cloud services—had started to drive growth.

China Unicom's second-quarter service revenue rose 0.5%, but value-added tax increases and a 19% lift in employee expenses due to spending timing changes drove down EBITDA by 18% and net profit by 46%. Management said "the full-year contraction in profit is expected to narrow significantly."

China Unicom's first-quarter services revenue declined 0.9%, which, in combination with value-added tax increases, drove down EBITDA by 6.6% and net profit by 17.6%.

China Unicom's fourth-quarter services revenue declined 1.2%, partially offset by improved accounts receivable, which helped EBITDA rise 4%, but fourth-quarter net profit declined by 49% to CNY 0.80 billion.

China Unicom is one of two original fixed-line telephone companies in China, each with its own traditional territory. It is also the third-largest wireless operator in the country, which had generated the majority of its growth until the past few years when computing and digital smart applications, or CDSA—internet data centers, ICT consulting services, and cloud services—had started to drive growth.

The Chinese government has increased the value-added tax on mobile data, broadband, SMS, and MMS revenue of Chinese telecom services companies to 9% from 6%, effective Jan. 1, 2026.

China Unicom is one of two original fixed-line telephone companies in China, each with its own traditional territory. It is also the third-largest wireless operator in the country, which had generated the majority of its growth until the past few years when computing and digital smart applications, or CDSA—internet data centers, ICT consulting services, and cloud services—had started to drive growth.

China's Ministry of Industry and Information Technology reported 2025 telecom industry total revenue growth of 0.7%, a 3.1% decline in mobile data traffic services revenue, offset by a 5.9% rise in fixed internet broadband revenue, and 4.7% growth from emerging businesses such as cloud and Big Data.

China Unicom reported a solid third quarter—services revenue grew 0.2%, EBITDA was flat, and net profit rose 5.3%. The revenue growth rate was slightly below the industry rate of 0.6%, but EBITDA growth was above the industry's 0.4% decline, and net profit growth was above the industry's 2.2%.

China Unicom is one of two original fixed-line telephone companies in China, each with its own traditional territory. It is also the third-largest wireless operator in the country, which had generated the majority of its growth until the past few years when computing and digital smart applications, or CDSA—internet data centers, ICT consulting services, and cloud services—had started to drive growth.

China Unicom is one of two original fixed-line telephone companies in China, each with its own traditional territory. It is also the third-largest wireless operator in the country, which had generated the majority of its growth until the past few years when computing and digital smart applications, or CDSA—internet data centers, ICT consulting services, and cloud services—had started to drive growth.

China Unicom reported a solid second-quarter result with services revenue growing 1.5%, EBITDA down 1.4%, and net profit up 4.6%. First-half operating cash flow was broadly flat at CNY 29 billion, with free cash flow up 63% to CNY 8.8 billion on reduced capital expenditure.

China Unicom reported a solid first quarter, with services revenue growing 2.1%, EBITDA down 2.1%, and net profit up 5.6%.

China Unicom is one of two original fixed-line telephone companies in China, each with its own traditional territory. It is also the third-largest wireless operator in the country, which had generated the majority of its growth until the past few years when computing and digital smart applications, or CDSA—internet data centers, ICT consulting services, and cloud services—had started to drive growth.

China Unicom had a solid 2024, with services revenue up 3.2%, EBITDA down 0.4%, and net profit up 10.1%. Fourth-quarter services revenue growth of 5.5% was boosted by the government's policy initiatives, but the volatile employee expenses line drove fourth-quarter EBITDA down 9.4%.

China Unicom is one of two original fixed-line telephone companies in China, each with its own traditional territory. It is also the third-largest wireless operator in the country, which had generated the majority of its growth until the past few years when computing and digital smart applications, or CDSA—internet data centers, ICT consulting services, and cloud services—had started to drive growth.

The three main Chinese telecom companies, China Telecom, China Unicom, and China Mobile, are leveraging their strong positions in the cloud services market into providing artificial intelligence products and services, primarily targeted at government and corporates.

China Unicom is one of two original fixed-line telephone companies in China, each with its own traditional territory. It is also the third-largest wireless operator in the country, which had generated the majority of its growth until the past few years when industrial internet (internet data centers, ICT consulting services, and cloud services) has started to drive growth.

China Unicom reported a solid third-quarter 2024 result, with services revenue growing 2.0%, EBITDA up 0.5%, and net profit up 7.9%, all year on year.

China Unicom reported a broadly in-line second-quarter 2024 result with service revenue growing 2%, EBITDA increasing 2.1%, and net profit up 13%, all year on year. We note that the higher net profit growth was mostly driven by higher “other income - net,” which increased by CNY 587 million year on year instead of being reduced as we had expected. Contributions from this line in the first quarter were reduced by CNY 368 million because of the reduced contribution from the additional reduction in value-added tax, which finished at end-2023 and this should hit this line every quarter in 2024. We estimate that net profit would have increased by only around 5% in the second quarter if we had adjusted for one-offs in this revenue line.