China Unicom earns 13.8 billion in the mid-term, an increase of 11.3%
China Unicom (762) achieved a net profit of 13.8 billion yuan in the first half of the year, an increase of 11.3% year-on-year. Operating income increased to 197.3 billion yuan, a year-on-year increase of 2.9%, with EBITDA reaching 55 billion yuan, up 2.7% year-on-year. The company distributed a mid-year dividend of 0.2481 yuan per share, up 22.2%. Despite a decrease in net cash flow from operating activities, capital expenditures amounted to 23.9 billion yuan, a decrease of 13.4% year-on-year. The performance of international business improved, with a total user base exceeding 1 billion, including 340 million mobile users, over 560 million IoT connections, and a 5G package user penetration rate exceeding 80%
China Unicom (762) saw steady growth in operating revenue in the first half of the year, reaching RMB 197.3 billion, a year-on-year increase of 2.9%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached RMB 55 billion, up 2.7% year-on-year. Net profit reached RMB 13.8 billion, an 11.3% increase year-on-year. The company distributed a mid-year dividend of RMB 0.2481 per share (pre-tax), a 22.2% increase year-on-year.
In the first half of the year, China Unicom's net cash flow from operating activities was RMB 29.29 billion, with free cash flow of RMB 5.39 billion after deducting capital expenditures for the period. The company's CFO, Li Yuchao, stated at the performance release conference that this was mainly due to a decrease of RMB 9 billion in net cash flow from operating activities during the period, while capital expenditures exceeded expectations.
China Unicom's Chairman and CEO, Chen Zhongyue.
Capital Expenditures Exceed Expectations
China Unicom's capital expenditures in the first half of the year were RMB 23.9 billion, a 13.4% decrease year-on-year. It is expected that the full-year expenditure will be RMB 65 billion, a 12% decrease year-on-year. Tang Yongbo, Senior Vice President of China Unicom, stated that capital expenditures are mainly used for technological upgrades, equipment renewal, and phasing out outdated equipment, but the ratio of capital expenditures to revenue will decrease.
Chairman and CEO Chen Zhongyue of China Unicom stated that the company's international business performed better in the first half of the year compared to the past two years. He emphasized the importance of international operations for China Unicom due to the large market space and potential, as well as the company's conditions and foundation to expand into different international markets.
The company's network users achieved a "double increase" in scale and value, with a net increase of nearly 80 million connections in the first half of the year, surpassing a total scale of 1 billion. Among them, mobile users increased by over 6 million, reaching a total of 340 million users, with the net increase scale reaching a new high in nearly five years; IoT connections exceeded 560 million; broadband users continued to grow steadily, reaching 117 million, with converged users surpassing 80 million. The user structure further optimized, with a penetration rate of over 80% for 5G package users, over 25% for gigabit broadband users, and an ARPU of RMB 103 for converged users
