China Unicom H1 Profit Exceeds Estimates

China Unicom (Hong Kong) said Friday its profit attributable to shareholders in the first six months of the year rose 69% from a year earlier to approximately RMB2.4 billion ($360 million), exceeding the RMB2.03 billion net profit estimate from analysts polled by Capital IQ. Revenue declined 1.5% to RMB138.2 billion, missing the RMB139.18 billion consensus estimate.

Meanwhile the company warned about business developments in H2. “Looking ahead to the second half of this year, as the group will cease to charge mobile domestic long-distance and roaming fee from 1 September 2017 onwards and market competition is expected to cyclically intensify,” the group said expects that its financial performance in the second half will face increasing pressure. “Going forward, the group will actively counter challenges, continue to deepen the implementation of the focus strategy and strive to steer the group onto the path of healthy development.”

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