The hottest China Unicom announced that its 2016 a

2022-07-23
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China Unicom announced that its 2016 performance revenue stopped falling and stabilized, and its 4G competitiveness continued to improve. On March 15, China Unicom announced its 2016 performance. In 2016, facing the severe challenge of market competition, the company actively promoted the implementation of the focus, cooperation and innovation strategy, spared no effort to make up for the basic weakness, stopped the decline of business and service revenue and stabilized, and continued to improve 4G competitiveness. In order to promote long-term sustainable development, the company bravely faced the pressure of short-term profits, made efforts to promote the gradual reversal of performance, and initially reversed the adverse situation of business development. In 2016, the company's service revenue stopped falling and stabilized, reaching RMB 240.98 billion, a year-on-year increase of 2.4%. EBITDA reached 79.5 billion yuan, a year-on-year decrease of 9.1%, and EBITDA accounted for 33.0% of service revenue. The profit attributable to the equity holders of the company was 630million yuan, a year-on-year decrease of 94.1%, which was significantly improved compared with the loss attributable to the equity holders of the company of about 3.36 billion yuan after excluding the income from the sale of iron towers in the second half of 2015. From January to February 2017, the profit attributable to equity holders of the company was about 460million yuan, an average monthly increase of about 50% over the first quarter of 2016. In the future, the company will continue to deepen the implementation of the focus strategy and strive to improve its profitability

in 2016, China Unicom strengthened precision investment and actively promoted cooperation and resource sharing within and outside the industry. While significantly improving its network capacity, its capital expenditure fell sharply year-on-year to RMB 72.11 billion, a decrease of 46.1% over the same period last year. Thanks to the gradual improvement of service income and the sharp decline of capital expenditure, the free cash flow of the company became positive, reaching 2.48 billion yuan

4g competitiveness continued to improve, marketing transformation achieved a good start, and mobile business developed healthily. Mobile service revenue stopped falling and rebounded, with a year-on-year increase of 1.7% to 145.02 billion yuan. Mobile billing users successfully reversed the downward trend of last year, with a net increase of 11.51 million, reaching a total of 263.82 million. ARPU of mobile billing users increased steadily, reaching RMB 46.4. In 2016, the company focused on key areas to accelerate the construction of 4G networks, realizing that the quality of 4G networks in key areas was comparable to that in the industry, and the capacity was abundant; Fully drive the popularization of all-in-one dual card slot, and rapidly improve the terminal supply; By accurately releasing traffic, superimposing content and accelerating the upgrading of 2g/3g users to 4G, the rapid growth of mobile data traffic is stimulated. In 2016, the company had a net increase of 60.4 million 4G users, reaching a total of 104.55 million; The proportion of 4G users in mobile billing users increased by 22.1 percentage points year-on-year to 39.6%, and there is still huge room for growth; The monthly average data flow of 4G users reaches 1521mb

the rapid development of innovative business in key areas has promoted the steady growth of solid service revenue. In 2016, the company accelerated the development of innovative business and effectively offset the decline in fixed voice revenue. The annual service revenue of fixed assets business was 94.66 billion yuan, a year-on-year increase of 3.7%. The company actively gives play to the advantages of optical fiber network and informatization, focuses on industrial interconnection and platform business, and comprehensively improves its core competence. Internet Data Center (IDC) and cloud computing business realized a revenue of 9.45 billion yuan, a year-on-year increase of 33.7%. Information and communication technology (ICT) business achieved a revenue of 5.94 billion yuan, a year-on-year increase of 37.0%, maintaining a market leading position in the field of education informatization and accelerating the scale development in the field of medical informatization

actively respond to the fierce broadband competition, and drive user consumption upgrading and integrated development with high bandwidth products and video applications. The company makes full use of the network capacity formed by optical fiber transformation, mainly promotes high bandwidth products, takes video as the guide to enrich content and applications, drives users' bandwidth upgrading, and highlights differentiation and brand advantages; We will promote the optimization and upgrading of broadband, video, applications and other home connectivity integration products, and promote the development of each other. In 2016, the company achieved fixed broadband access revenue of 43.87 billion yuan, which remained stable year-on-year. Fixed broadband users increased by 4.0% year-on-year to 75.24 million, of which FTTH users accounted for 71.2%. The penetration rate of smart wauka users among fixed broadband users reached 26.1%, an increase of 12.8 percentage points year-on-year

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the network coverage and network speed are greatly improved. In 2016, the company had a net increase of 337000 4G base stations, reaching a total of 736000; The 4G networks in key areas achieve the same coverage, speed and signal quality industries, plus a 24 bit high-precision low noise high-speed AD converter. The upgrading and speed-up of fixed broadband has been steadily promoted. The ten northern provinces have achieved all-optical access as a whole, and the urban areas have 100 megabyte access capability. The transmission, bearing and other basic network capabilities continue to improve, and the backbone delay is the lowest in the industry. After receiving it, the fast buyers of network capability only need to grasp the zipper strip for improvement, which has laid a solid foundation for the company to speed up business development

deepen industrial cooperation and accelerate innovation and transformation. In 2016, the company actively deepened cooperation in various fields, promoted the improvement of network and business development capacity, and promoted cost reduction and efficiency increase, with gradual results. During the year, the comprehensive strategic cooperation between the company and Chinatelecom was smoothly promoted. Throughout the year, about 70000 4G base stations and 16000 kilometers of transmission optical cables were jointly built and shared; The accumulated capital expenditure saved is about RMB 3.3 billion yuan, and the cost saved is about RMB 350million yuan. In the fourth quarter of 2016, China Unicom carried out precision marketing cooperation with Internet companies, launched customized traffic products, helped the company obtain new user development contacts, promoted 4G user development capacity and income with low incremental cost, and promoted user consumption upgrading through intelligent marketing, so as to continuously improve user value

at present, the basic service based on connection is still the main source of revenue for operators. The traditional communication users are saturated, the voice service is still declining, the stock market competition is more intense, and the traffic demand continues to grow. Innovative business oriented to new demands has become a new engine for growth. The country has implemented the network power strategy and the Internet + action plan. IOT, cloud computing, big data, etc. have changed from potential markets to real needs. There is a huge space for industrial value. At the same time, the further release of the company's internal and external reform dividends will promote the transformation of China Unicom's operating mechanism at a higher level

wangxiaochu, chairman of China Unicom, said: looking forward to the future, the company will face difficulties and challenges, seize development opportunities, continue to deepen the implementation of the focus strategy, adhere to the development of economies of scale as the main line, promote development, control costs and transfer mechanisms, and promote the company to speed up the difficult transformation period and accelerate the reversal of future performance, so as to embark on the road of healthy development

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