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China Unicom Issues Profits Warning

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The Chinese mobile network operator, China Unicom has issued a profits warning, having estimated that its Q1 net profits would fall, blaming rising costs.

The company's initial estimates suggest that profits will collapse by 86 percent to just RMB146 million (US22.6 million) in the first three months for this year.

The decrease was mainly caused by a 16 percent rise in marketing expenses and a 37 percent rise in network operational costs such as spending on communications towers, power and rent.

However, the company said Q1 results had improved from the previous quarter, when it posted a loss of RMB1.5 billion.

Revenue from primary business rose from both a year earlier and the fourth quarter of last year as the number of mobile subscribers began to grow again.

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Tags: china unicom  China