Chinas Top 3 Telecom Providers Facing Decline in Profit

Published By : 08 May 2015 | Published By : QYRESEARCH

China Unicom, China Mobile, and China Telecom issued their performance report for the first quarter of 2015, where all of them reported a decline in the net profit during the period.

China Mobile stated that the operating revenue of the company in the first quarter of 2015 was US$25.90 billion showing a year-on-year increase of 3.9%; whereas its net profit was US$3.83 billion, which shows a year-on-year decline of 5.6%. The net profit of the China Mobile reportedly declined for 7 consecutive quarters. 

The operating revenue of China Unicom was US$9.70 billion during the reporting period, showing a year-on-year decline of 5.6%; and its net profit was US$0.50 billion, exhibiting a year-on-year decline of 4.2%. The operating revenue of China Telecom was US$13.11 billion, presenting a year-on-year decline of 2.1%; and its net profit was US$0.81 billion, exhibiting a decline of 9% on year-on-year basis.

As stated by China Telecom, the revenue and profit of China telecom were affected by the trial of replacing business tax with value-added tax in China. In addition to this, the other measures such of the company as maintaining its marketing model, optimizing development, and improving marketing expense control also impacted its performance. China Unicom also stated that its profit decrease was attributed to the trial of replacing the business tax with the value-added tax.

For the user development, the 3 major carriers in China faced various situations. Based on its 4G business benefit, China Mobile attained almost 4 million new mobile users in March, 2015, reaching a sum of 815 million users. During the 1st quarter of 2015, the company added more than 53 million new 4G users, and the total number of its 4G users went to 143 million. Meanwhile, China Telecom achieved 1.25 million new mobile users in March, 2015 to come up at a total of 189 million users; and it attained 9.67 million new 4G users in the 1st quarter of 2015 to reach a total of 16.75 million 4G users.
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