China Unicom's revenue declined in the first half of 2019, but net profit increased by 16%
China Unicom released its 2019 interim results report.
Revenue fell, but net profit increased by 16%, and the growth of innovative business was strong.
In the first half of 2019, with the painful period of the domestic communications industry entering the development period, China Unicom's revenue growth was under pressure, and service revenue reached RMB 133 billion, down 1.1% year-on-year. Among them, mobile service revenue was RMB 78.7 billion, down 6.6% year-on-year; fixed-line broadband access revenue decreased by 4.1% year-on-year to RMB 20.6 billion.
Despite the decline in traditional business revenues, the growth of innovative business growth was strong. The revenue of industrial Internet services including ICT, IDC and cloud computing, Internet of Things and big data services increased by 43% year-on-year to RMB 16.7 billion.
At the same time, through the implementation of the strategy of focusing on innovation and cooperation, China Unicom continued to improve its profitability through cost control, efficiency improvement and net profit of 6.9 billion yuan, a year-on-year increase of 16.3%.
Seize the 5G first opportunity, actively seek for 5G network joint construction and sharing
According to the financial report, in the first half of 2019, China Unicom actively cooperated with the industry chain to actively construct 5G network construction and development, and first released the 5G brand 5Gn, focusing on the “7+33+N” cities to carry out 5G network scale trials, and took the lead in Beijing and Shanghai. Guangdong and Shenzhen launched a user-friendly experience.
In the future, China Unicom will actively seek to build and share 5G networks to accelerate the pace of 5G network construction, reduce network investment, and save a lot of capital expenditure, tower usage fees, network maintenance costs and electricity bills.
China Unicom also said that the company will accurately invest in 5G construction according to technological progress, market and business needs, industry competition, etc., promote 5G ecological construction, foster and consolidate 5G unique competitive advantages, seize new business opportunities, and provide more vertical industries. Can give wisdom and create new value.
China Unicom plans to include 5G capital expenditures of approximately RMB 58 billion for the full year of 2019. It plans to build more than 40,000 5G base stations in 40-50 cities, and roll-on arrangements on demand for 2B demand with good business models.