On the afternoon of November 21, China Unicom officially released the main financial and operational data for the first three quarters of 2020.

During the period, China Unicom achieved an overall service revenue of 207.349 billion yuan (RMB, the same below), an increase of 4.4% over the same period last year; EBITDA was 73.7 billion yuan, an increase of 0.8% over the same period last year; The profit attributable to equity holders of the company was 10.824 billion yuan, an increase of 10.2% over the same period last year.

Specifically, the mobile service revenue was 116.539 billion yuan, a decrease of 1.0% over the same period last year, significantly narrowed compared with the whole year of 2019, and further increased by 2.5% year-on-year in the third quarter alone. The industrial Internet business revenue was 32.656 billion yuan, an increase of 34.4% over the same period last year.

In its financial report, China Unicom pointed out that in terms of mobile business, since the second half of last year, China Unicom has been guided by value management, actively adjusted its mobile business development strategy, adhered to self-discipline, rational and standardized competition, strictly controlled user development costs and improved the quality of user development; Give full play to the advantages of centralized IT system of the whole network, promote online and offline integration, and improve marketing efficiency through all channels; Effectively implement 5g Network Co Construction and sharing, gradually strengthen the development of 5g public users in a rhythmic and targeted manner, and lead users’ consumption upgrading through 5g innovative applications.

In the first three quarters of 2020, the number of mobile billing users decreased by 9.29 million to 309 million; ARPU of mobile billing users increased by 2.6% year-on-year to RMB 41.6; Mobile service revenue was RMB 116.539 billion, a decrease of 1.0% over the same period last year, significantly narrowed compared with the whole year of 2019. Thanks to the active and effective adjustment of mobile business development strategy, the group’s mobile business development quality gradually improved, and the mobile service revenue in the third quarter further increased by 2.5% year-on-year.

In terms of fixed line broadband services, the normalization of epidemic prevention and control has significantly increased the demand for broadband networking and speed-up. The group adheres to rational and standardized competition, actively gives full play to the comprehensive advantages of high broadband speed, rich content and excellent service, speeds up the promotion of smart home series products, and promotes the common growth of broadband access services and other related services. In the first three quarters of 2020, the number of fixed line broadband users increased by 3.08 million, reaching 86.56 million; Fixed line broadband access revenue reached 32.096 billion yuan, an increase of 3.7% over the same period last year.

In the field of innovative business, the national new infrastructure strategy and epidemic situation further accelerate the needs of digital, networked and intelligent transformation of economy and society. The group seizes the opportunity to focus on key areas such as smart city, digital government, smart medical treatment and industrial Internet, seize the beach layout, actively give full play to the advantages of resource endowment, deeply promote industrial cooperation, and accelerate the cultivation, integration and innovative development of 5g + vertical industry applications; We have deepened business level cooperation with mixed reform partners, industry leaders and other companies, and established a number of joint ventures to combine strong and complementary advantages. Cultivate independent capabilities, accelerate the construction of independent capabilities and the promotion of self-developed products around the platform of capabilities, product standardization, intensive R & D and independent integrated delivery, and enable the digital transformation of government and enterprise customers.

In the first three quarters of 2020, the industrial Internet business revenue was 32.656 billion yuan, an increase of 34.4% over the same period last year. Driven by the rapid growth of innovative business, the fixed network service revenue reached RMB 89.057 billion, an increase of 12.9% over the same period last year.

In the first three quarters of 2020, the inter network settlement cost decreased by 9.6% over the same period last year, mainly affected by the decline of inter network traffic. Network, operation and support costs increased by 7.4% over the same period last year, mainly due to the increase in the use fees of housing equipment and iron towers. China Unicom continued to promote the reform of incentive mechanism, strengthened the link between incentive and performance, increased the introduction of innovative talents and enhanced the new momentum of innovation and development, and the employee salary and welfare expenditure increased by 7.9% over the same period last year. The cost of selling communication products decreased by 9.0% over the same period last year, mainly due to the strengthening of value management and the decline in the sales of communication products during the period. During the period, the Group actively transformed and developed, strictly controlled user development costs, and the sales expenses decreased by 12.6% over the same period last year to RMB 22.465 billion. Other operating and administrative expenses increased by 39.2% over the same period last year, mainly due to the increase in relevant service costs caused by the rapid growth of ICT business and the increase in investment in technical support for innovative business.

China Unicom pointed out that it will continue to deepen the focus on innovation cooperation strategy, make every effort to stabilize the basic business, improve the core competence of government and enterprise business, enhance the development momentum of innovative business, and ensure the steady growth of enterprises. At the same time, we will deepen the reform of mixed ownership, give full play to the advantages of differentiation, solidly promote the transformation and improvement of business, channel, network, it support and resource allocation, promote governance modernization with comprehensive digitization, and strive to achieve high-quality and healthy development.

Responsible editor: GT

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