China Unicom reported an increase in profit for the first nine months of 2012, driven by growth in its 3G and value added services businesses.
 
Mobile service revenue for the period was RMB93.11 billion (US$14.91 billion), with just under half (45.9 percent) coming from 3G services – compared with 29.2 percent in the same period in 2011.
 
Some 29 percent of Unicom’s subscribers now have 3G devices.
 
The Chinese number-two added 26.84 million 3G subscribers during the period, taking its total 3G subscriber base to 66.86 million.
 
Almost 90 percent of net additions during the nine months were 3G subscribers, which deliver a higher ARPU (RMB89.10) than their GSM counterparts (RMB34.80).
 
The growth in 3G subscribers was accompanied by an increase in the operator’s spend on handsets: costs of telecommunication products sold increased by 48.4 percent to RMB33.78 billion.
 
Although revenue from selling these products increased by 60 percent, they still only generated RMB29 billion, resulting in a RMB4.78 billion loss, including a 3G handset subsidy cost of RMB4.64 billion.
 
Unicom has also invested in the expansion of its mobile network and improved network quality.
 
Value-added services accounted for 40.9 percent of mobile service revenue at RMB38.09 billion, compared to 36 percent in the equivalent period in 2011.
 
Unicom’s GSM service revenue was down 6.2 percent to RMB50.39 billion, although the company added 2.98 million subscribers, taking the total to 162.62 million. This equates to 71 percent of its total customer base.
 
The net addition of all mobile subscribers for the period was 29.83 million, taking its total to 229.49 million.
 
China Unicom’s group revenue for the period was RMB 185.19 billion, an 18.8 percent increase compared to 2011.  Profit was up 29.9 percent to RMB5.45 billion.