China Unicom’s Revenues Should Trend Steadily Higher, Driven By Wireless Business

by Trefis Team
+19.99%
Upside
5.73
Market
6.88
Trefis
CHU
China Unicom
Rate   |   votes   |   Share

China Unicom (NYSE:CHU) is a telecommunications company that provides wireless and wireline-based voice and data services and related applications across Mainland China. The company has two segments: (1) Mobile Services & Phones: provides wireless and data services across Mainland China. The segment also sells mobile handsets. (2) Wireline Services: provides wireline voice and broadband services. In this analysis, we breakdown the key revenue drivers for the company.

View our interactive dashboard analysis China Unicom Revenues: How Does China Unicom Make Money?

China Unicom’s Total Revenue has grown 7% from $41 billion in 2016 to almost $44 billion in 2018 and is expected to grow 7.5% to over $47 billion in 2 years

Revenue growth of about $3.5 billion over two years to be driven by $3 billion increase in (A) Mobile Services & Phones and $0.5 billion increase in the (B) Wireline Services Revenues

(A) Revenue from Mobile Services & Phones to increase 10% (about $3 billion) in the next two years, with its share of Total Revenue expected to be about 67% by 2020

  • Segment revenues grew from $27 billion in 2016 to $29 billion in 2018, driven by a higher number of wireless subscribers, although this was partly offset by falling ARPUs.
  • We expect revenues to grow to about $32 billion in 2020, driven by further growth in the number of subscribers as well as slightly higher ARPUs.

(B) Revenue from Wireline Services to increase 3% (about $0.5 billion) in the next two years, with its share of Total Revenue expected to be about 33% by 2020

  • Segment revenues grew from $14 billion in 2016 to almost $15 billion in 2018, driven by higher revenues from its Other Wireline business – which includes Internet data center, IT services, and leased line services – although this was partly offset by a decline in Broadband Revenues, amid stiffer competition from China Mobile.
  • We expect segment revenues to grow to about $15.5 billion in 2020, driven by a recovery in the Broadband business.

 

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 Data

Like our charts? Explore example interactive dashboards and create your own.

Rate   |   votes   |   Share

Comments

Name (Required)
Email (Required, but never displayed)
Be the first to comment!