China Unicom forecast it would record a double-digit increase in net profit in 2019 despite an expected decline in mobile revenue, in updated earnings guidance issued today (24 January).
In a statement, the operator said it benefitted from “effective cost control” during the year, resulting in expectation of a 10.8 per cent year-on-year rise in profit to CNY11.3 billion ($1.6 billion).
Mobile revenue was expected to fall, but by less than the 6.1 per cent decrease [1] recorded in the first nine months of 2019.
The operator attributed the drop to a government push for operators to boost mobile internet speeds while reducing tariffs. It also cited “market saturation, keen market competition and a diminishing 4G data bonus” as factors.
Overall service revenue in 2019 was expected to be steady or rebound slightly, after declining marginally (0.7 per cent) in the opening nine months.
[1] https://www.mobileworldlive.com/featured-content/top-three/china-unicom-profit-climbs-despite-mobile-weakness/
