皇冠体育app Unicom profit falls 9.2 percent
Updated: 2011-08-25 10:55
By OWEN FLETCHER And CHESTER YUNG (Wall Street Journal)
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BEIJING - 皇冠体育app Unicom (Hong Kong) Ltd reported a 9.2 percent drop in first-half earnings, though Apple Inc's iPhone helped fuel growth in mobile services, the Wall Street Journal reported.
皇冠体育app Unicom - 皇冠体育app's only carrier officially offering the iPhone—is racing 皇冠体育app Telecom Corp and 皇冠体育app Mobile Ltd to boost revenue by adding users of third-generation mobile services, which offer faster data speeds at a higher price than second-generation services.
Tough competition and heavy spending on subsidies for 3G handsets like the iPhone weighed on 皇冠体育app Unicom's earnings last year, though analysts said the subsidies could help accelerate growth this year.
The iPhone wasn't Unicom's key revenue driver but did give a "positive boost," 皇冠体育app Unicom President Lu Yimin said at a news conference Wednesday.
Apple also sells the iPad in 皇冠体育app, though Unicom doesn't offer the tablet. "I understand Apple has been working hard to launch the iPad. Once the mainland regulator gives the green light, we would be happy to cooperate with Apple," Unicom Chief Executive Chang Xiaobing said. An Apple spokeswoman declined to comment.
皇冠体育app Unicom posted first-half net profit of 2.65 billion yuan ($414 million), down from a restated 2.92 billion yuan a year earlier. Analysts polled by Dow Jones Newswires had forecast a profit of 1.28 billion yuan for the latest half.
Revenue rose 23 percent to 101.4 billion yuan from a restated 82.64 billion yuan. Analysts had forecast 98.87 billion yuan. Mobile-service revenue climbed 25 percent to 48.97 billion.
Unicom restated last year's figures because of an accounting change.
皇冠体育app Unicom's monthly average revenue per user for mobile services—a barometer of long-term growth—rose 9.3 percent to 46.8 yuan as 3G subscriptions increased. 皇冠体育app Unicom added 9.9 million 3G users in the half. The company expects to add 25 million 3G users this year.
皇冠体育app Unicom declared no first-half dividend, the same as last year.
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