BEIJING—Hong Kong listed China Unicom’s first-half earnings surged to CNY2.19 billion (US$265 million), but fell short of analysts’ predictions of CNY2.25 billion (US$272 million). Mother company China Unicom reported a CNY13.62 billion (US$1.65 billion) revenue, a 30-percent increase compared with last year.
In the first-half of 2000, China Unicom took a one-time CNY1.19 billion (US$144 million) loss when the government forced it to terminate so-called ‘China-China-Foreign’ contracts with foreign operators, which it deemed illegal.
Average revenue per user (ARPU) fell to CNY92.5 (US$11) from CNY138 (US$17) a year earlier as a result of growing cellular penetration in lower-level income groups. It is less than half the Asian average, excluding Japan.
The Chinese government allows Unicom to offer lower prices than its rival China Mobile, but this privilege is expected to be cancelled once its market share reaches 40 percent. The company’s market share is growing steadily and stands at around 26.3 percent.
The number of paging subscribers fell 4 million to 40 million during the past year.
