Yesterday afternoon, China Unicom released its 2016 annual results. The financial report showed that its operating income was 274.20 billion yuan, down 1.0% year-on-year, and net profit was 630 million yuan, a decrease of 94.1%.
Since 2014, China Unicom has entered a period of negative growth, and now it has passed three years of hardship. In Wang Xiaochu's view, the arrival of the 5G era is a key opportunity for the company to return to a game. China Unicom will never make another mistake in the 4G era.
He said, "The three companies I work for, China Mobile (microblogging), China Telecom (microblogging) and China Unicom, I think that although in the same industry, the style of each company, especially the management method is very Different, China Unicom has the characteristics of China Unicom, and this feature, I have come more than a year, now I know about 70% or 80%, and 20% still have to wait for me to understand, but I It can be said that China Unicom has a lot of room for improvement, so we have the confidence to make it better."
In Wang Xiaochu's view, among China's three major operators, China Unicom is relatively weakest. Wang Xiaochu quoted the old saying "the boat is turning around quickly" to show that China Unicom can gain more flexibility in the transformation of innovation and marketing model.
It is understood that after Wang Xiaochu took charge of China Unicom, he quickly gave up the principle of simultaneous development of 3G and 4G, and turned to resources to promote 4G network construction. Judging from the performance of China Unicom in 2016, China Unicom's focus strategy can be said to have achieved initial results.
According to the financial report data, in 2016, China Unicom's service revenue stabilized and stabilized, reaching 240.98 billion yuan (the same unit), an increase of 2.4% year-on-year, achieving a profit attributable to equity holders of the company of 630 million yuan, a year-on-year decrease. 94.1%.
4G users continued to grow. In 2016, 4G users increased by 60.4 million, with a total of 105 million, and 4G users exceeded 100 million for the first time. In response to the growth target for 2017, Wang Xiaochu revealed that it will also be around 60 million.
However, he stressed that the 4G APRU will decline with the rapid growth of users, but the overall APRU will increase slightly. Last year, China Unicom's 4G users used a monthly average of 1521MB.
In response to the cancellation of long-distance roaming charges, Wang Xiaochu said: "At present, we see that the biggest impact on the company in each quarter is that the roaming fee income is roughly 1.58 billion yuan a quarter." According to China Unicom's plan, this year Long-distance roaming charges will be cancelled in full on October 1.
For the industry's hot 5G deployment, China Unicom said it has invested more than 200 billion yuan in two consecutive years and will slow down investment this year. "One is to improve the current effective utilization of assets, so that the company's profitability improved, and more importantly, prepare some funds for the development of 5G." Wang Xiaochu said.
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