Key Takeaways From China Unicom’s 2017 Results
China Unicom (NYSE:CHU), the second largest Chinese wireless provider, published its full-year 2017 results on Thursday, reporting year-over-year profit growth, driven by the improving performance of its wireless business. Below, we take a provide some of the key takeaways from the carrier’s earnings and what lies ahead for company’s wireless and broadband businesses in 2018.
We have created an interactive dashboard analysis outlining the company’s results and our expectations for 2018. You can modify the charts with blue dots to arrive at your own estimates for the company’s 2018 revenues.
Revenues Remained Flat In 2017, Although Margins Saw A Slight Improvement
- Is The Market Undervaluing Chinese Telcos: A Comparison With Verizon & AT&T?
- Will China Unicom Be Able To Shake Off Revenue Headwinds In 2020?
- China Unicom’s Revenues Should Trend Steadily Higher, Driven By Wireless Business
- A Look At China Unicom’s Subscriber Performance Over The First Half Of 2019
- China Unicom’s Earnings Grow On Lower Costs, Rising Wireless Subscriber Base
- What To Watch As China Unicom Reports FY’18 Results
China Unicom’s 2017 revenues remained almost flat in 2017, as revenue growth in the wireless space largely offset declines in landline and telecom products sales. However, overall margins saw an uptick, as handset subsidy costs and SG&A expenses trended lower.
Mobile Services
Mobile services revenues recorded strong growth, driven by subscriber additions as well as improved ARPU. ARPU from the company’s mobile billing subscribers grew by 3.5% year-over-year to RMB 48.0, driven by a higher mix of 4G subscribers in its user base. The carrier’s 4G market share grew by 3.7% and it could have more room to expand, given that its 4G subscriber penetration stands at 62% versus the industry average of 71%.
Wireline Broadband Services Business Sees Strong Competition
Unicom’s broadband revenues declined in 2017 due to intense competition, which impacted its ARPU, although its user base continued to grow. The company is looking to enhance network coverage and quality, while promoting higher-speed products in Northern China and select regions in Southern China, and it’s possible that these investments could help it improve its performance going forward.
What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
More Trefis Research
Like our charts? Explore example interactive dashboards and create your own