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 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.Subscribe to our daily newsletter Back