China Unicom's 2016 results released net profit plunged 94.1%

Electronic enthusiasts eight o'clock: March 15 news, China Unicom released its 2016 annual results, its operating income was RMB 274.20 billion, down 1.0% year-on-year, of which service revenues stabilized to reach RMB 240.98 billion. The year-on-year increase was 2.4%. The net profit was RMB 630 million, a decrease of 94.1%. Excluding the impact of the net income from the sale of the tower in 2015, it decreased by RMB 3 billion.

Mobile service revenue increased by 1.7% year-on-year to RMB 145.02 billion. Mobile net users increased by 15.1 million, with a total of 263.82 million. The mobile posting user ARPU has risen steadily, reaching RMB 46.4. Net increase of 4G users was 60.4 million, the total number reached 104.55 million; 4G users accounted for 22.1 percentage points year-on-year, up 39.6%, still have huge room for growth; 4G users monthly average data traffic It reached 1,521MB.

In 2016, China Unicom achieved fixed-line broadband access revenue of RMB 43.87 billion, which was stable year-on-year. Fixed-line broadband subscribers increased by 4.0% year-on-year to 75.24 million, of which FTTH users accounted for 71.2%. The fixed-line business achieved a service revenue of RMB 94.66 billion for the year, a year-on-year increase of 3.7%. The penetration rate of “Smart Wojia” users in fixed-line broadband users reached 26.1%, an increase of 12.8 percentage points year-on-year.

In addition, in 2016, China Unicom built a total of about 70,000 4G base stations, about 16,000 kilometers of transmission network cables, and 337,000 4G base stations, with a total of 736,000.

In 2016, China Netcom's net cash flow from operating activities was RMB 74.59 billion, and capital expenditure was RMB 72.11 billion. As of the end of 2016, the company's asset-liability ratio was 62.9%. From January to February 2017, the profit attributable to equity holders of China Unicom was approximately RMB 460 million, an average monthly increase of approximately 50% over the first quarter of 2016.

Last week, China Unicom's mixed ownership reform plan, which has been in circulation for half a year, has made initial progress. At the policy briefing held by the State Council on March 6th, Lu Yimin, the general manager of China Unicom Group, revealed in response to a reporter's question that the current China Unicom's mixed reform plan is being approved by the relevant state departments.

Unicom's mixed-reform is a program that allows operators to introduce private capital for the first time in domestic history. In the past few months, China Unicom has cooperated with BAT, such as launching package tariffs, and applying mobile phone cards for different consumer groups. .

This seems to the outside world, meaning that the domestic Internet giants Tencent, Alibaba, Baidu are likely to participate in China Unicom mixed change.

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