China Unicom sees slower first quarter

Telecoms

25 April 2008

Mobile network operator China Unicom blamed seasonal factors for its weakened profits in the first quarter of the year, the South China Morning Post reported. Profits rose 1.6% year-on-year to US$288 million, which was roughly in line with market expectations. However, it is thought a weaker than expected performance by Unicom's mobile business may prompt analysts to revise down their full-year forecasts. GSM revenues rose 6.6% to US$2.32 billion in the first quarter while average revenue per user per month was US$6.33, down from US$6.57 for the same period of last year. The company's CDMA operations, which are likely to be sold to China Telecom, rose 1.9% to US$968.4 million. Average revenue per user per month was US$7.61, down from US$8.30 the previous year. One analyst said this slowdown could wipe US$128.6 million off China Unicom's full-year profits.

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