China Unicom achieved a net profit of 6.83 billion yuan in the first three quarters, accounting for more than 20% of its industrial Internet revenue

On the evening of October 28, China Unicom (600050) disclosed its third quarterly report. In the first three quarters, the company achieved revenue of 263.98 billion yuan, an increase of 8.0% over the same period last year, and its main business income reached 239.65 billion yuan, an increase of 7.8% over the same period last year. Net profit was 6.83 billion yuan, an increase of 20.4% over the same period last year. The absolute value of revenue and net profit hit the highest level in the same period since listing. 

At the same time, China Unicom’s revenue structure has been continuously optimized, and the industrial Internet business has achieved revenue of 53.15 billion yuan, a significant increase of 29.9% year-on-year, accounting for 22.2% of the main business revenue. EBITDA was 76.59 billion yuan, an increase of 1.9% over the same period last year.

In terms of business segments, in terms of “big connection”, China Unicom seized the strategic opportunity of 5G and broadband “dual gigabit”, made every effort to promote the construction of 5G high-quality network and gigabit optical broadband high-quality network, and continuously promoted the “basic connection” to “everything”. A new leap in connectivity”. Deepen the new model of “platform + cloud network + X” for market segments, and accelerate the iteration of leading platforms and products such as digital villages and integrated video.

Data shows that China Unicom’s “big connection” user scale has reached a new high, reaching a total of 840 million, of which 5G package users reached 200 million, driving the company’s main mobile business revenue in the first three quarters to 127.36 billion yuan, a year-on-year increase of 3.3%. Fixed-line broadband access revenue increased by 3.9% year-on-year to RMB 34.64 billion.

China Unicom said that the company has accelerated the promotion of the ubiquitous interconnection of human, machine and things, adhered to the 5G-led network industry collaboration strategy, enhanced Yanfei’s core model capabilities through independent customization, promoted the integration of industry components into scenarios, achieved breakthroughs, and continued to expand the scale of connections, IoT terminals The number of connections reached 370 million, and the IoT business revenue reached 6.17 billion yuan, a year-on-year increase of 35.6%.

In terms of “big computing”, China Unicom optimized the “5+4+31+X” resource layout, focusing on key areas such as Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu-Chongqing, Shandong-Henan-Shaanxi, and improved computing service quality and efficiency. Utilize efficiency, continue to enrich the category of cloud products, and serve the construction of digital government cloud in many places and the digital transformation of central enterprises. In the first three quarters, Unicom Cloud achieved revenue of 26.87 billion yuan, a year-on-year increase of 142.0%; IDC achieved revenue of 18.61 billion yuan, a year-on-year increase of 12.9%.

In terms of “big data”, China Unicom has leveraged its advantages in data governance and data security to build a product system and deepen its efforts in key areas such as digital government and digital finance. In the first three quarters, big data realized revenue of 2.77 billion yuan, a year-on-year increase of 56.3%.

In terms of “big applications”, in the personal and home market, China Unicom has continuously created new supplies of digital and smart life and smart home applications, enhanced the experience of video ringtones, Unicom Assistant and Unicom cloud disk billion-level product experience, launched 5G new communication series products, innovative The development of application scale value has achieved initial results. In the government and enterprise market, the company continues to forge the six core capabilities of “cloud, big, material, intelligence, chain, and security”, enrich the categories of self-developed products, and further build digital customized service capabilities that create value for customers.

In terms of “big security”, China Unicom cooperates with leading enterprises in the fields of basic software and hardware, general security, 5G security, Internet of Things security, industrial Internet security, etc., to drive the industrial chain to gather intelligence and system integration, fully meet the needs of digital government, digital economy, Security needs of the digital society.

Data show that in the first three quarters, China Unicom’s network operation and support costs increased by 6.1% over the same period last year, mainly due to the expansion of the company’s network and related infrastructure. In addition, the company continued to promote the reform of the incentive mechanism, and labor costs increased by 5.6% compared with the same period last year; the company appropriately increased sales expenses to enhance market attractiveness, and sales expenses increased by 6.8% compared with the same period last year, but the growth rate was lower than the growth rate of main business income.

China Unicom said that in the first three quarters, under the guidance of the “1+9+3” strategic planning system, the company actively integrated into the main battlefield of digital economy construction, expanded and upgraded new tracks, and achieved steady growth in revenue and profits, and the five tracks were stable. There has been progress, the network quality has been significantly improved, the customer service quality has been continuously improved, and the management efficiency has been continuously improved, laying a solid foundation for the company’s annual performance to achieve good growth.