China Unicom, a state-owned telecommunications operator, had an operating revenue of 274.2 billion yuan in 2016, a 1 percent year-on-year decrease. The company’s net profit for the same year was 630 million yuan, a 94.1 percent year-on-year decrease.
The telecom operator’s mobile business services realized 145.02 billion yuan revenue, a year-on-year growth of 1.7 percent, while its fixed-line business services realized a 94.66 billion yuan revenue, a 3.7 percent year-on-year decrease.
China Unicom’s broadband access had a revenue of 43.87 million, the same level as the revenue in 2015. The IDC and cloud computing business had a revenue of 9.45 billion yuan, a year-on-year increase of 33.7 percent.
Last year, China Unicom’s capital expenditure totaled 72.11 billion yuan. The majority of the capital was used in the construction of mobile networks, broadband and data services, and infrastructure and transmission networks.
27.74 billion yuan was invested by the company in mobile networks, 16.84 billion yuan in broadband and data businesses, and 19.71 billion yuan in infrastructure and transmission networks.
China Unicom’s total assets reached 614.15 billion yuan by the end of the previous year. Total debts changed to 386.47 billion and the company’s asset-liability ratio changed to 62.9 percent. The free cash flow of the company for 2016 was 2.48 billion yuan.
During the reporting period, a net increase of 11.51 million to a total of 263.82 million was observed in the number of China Unicom users. The company’s 4G users had a net increase of 60.4 million to a total of 104.55 million. The number of its 4G base stations had a net increase of 337,000, allowing it to reach the total of 736,000.
A 4 percent year-on-year growth to 75.24 million yuan was also observed in the company’s fixed-line broadband users. 71.2 percent of which were FTTH users.
Though China Unicom had an increase in revenue, its net income decreased due to a large number of capital expenditures.