Three-quarter 40% unicom 3G Scale to overtake Telecom

The third quarterly net profit fell more than 70%, the news dragged, China Unicom (600050, close to 5.25 yuan) two-tier market performance is poor, the last two trading days linked to the Yin line. 3G official business anniversary, Unicom handed over the report card is still difficult to say good.　　But industry researchers said that more than a year of promotion has also seen the results, the company was placed high expectations of the 3G business to release a positive signal, the third quarter 3G revenue growth significantly faster; compared with the competitor performance report data, Unicom 3G user scale is now more than China Telecom. 3G revenue increased by more than 40% this January-September, China Unicom to achieve revenue of 128.61 billion yuan, an increase of 9%, to achieve net profit of 1.07 billion yuan, down 73.8% year-on-year, the basic earnings per share 0.27 yuan.　　The quarterly net profit for the third quarter was 240 million yuan, a sharp decline of 48% per cent in the second quarter. In the face of such a quarterly bulletin, probably most investors are difficult to say a "good" word, industry researchers are "less than expected" "performance in the low hovering" and other words to evaluate.　　In particular, since the middle of the year, Unicom marketing aggressive, May adjustment tariff package structure, September iphone four-generation hot sales, mid-autumn holiday news, net profit of 73.8% year-on-year decline indeed exceeded the previous expected. "The main is that the mobile subsidy has increased a lot. Icho, an analyst at Fortune Securities, said.　　The quarterly reports showed that the subsidy was 1.82 billion yuan in the 3G Terminal sales account, while the first two quarters were 300 million yuan and 870 million yuan respectively, and the first three quarters amounted to 2.99 billion yuan. According to the regular report, after the adjustment of the 3G tariff structure in May this year, the subsidy expenditure on the handset terminal is gradually increasing.　　In 5 June, the expenditure was 340 million yuan and 440 million yuan, which rose to a monthly average of 600 million yuan in the third quarter. But there is no positive message. The last six months Unicom's marketing efforts to increase, the 3G business, although still in the loss, but the income has been significantly accelerated.　　The first three quarters of the company's 3G business completed communications services revenue of 7.55 billion yuan, to a single quarter to achieve 3G income per quarter 1.64 billion yuan, 2.45 billion yuan and 3.46 billion yuan, 3G income in the third quarter of the growth of 41% in the chain.　　3G users over China Telecom of course, relative to the total revenue of 128.61 billion yuan, Unicom 3G revenue accounted for only 5.8% and still loss, the distance to achieve a single monthly profit and even growth for the company's performance growth pillar, there is a considerable length of road. But some positive signals cannot be ignored. Unicom in the third quarter of the ARPU value (average monthly income per household) of 129.8 yuan, compared to 134 yuan in the semi-annual reported a slight decline, but MOU (average number of minutes per month) for 642 minutes, higher than the first half of 638.5 minutes. CICC believes that the May cut package tariff after the Unicom ARPU value followed in the second quarter, but the third quarter due to the user structure significantly improved, when the new development of the user ARPThe U value rose on the basis of the second quarter. As costs and costs increase, especially as 3G terminal subsidies grow fast, China Unicom expects net profit for the year to be "significantly changed" over the year. Icho said that, compared with foreign experience, although the iphone is a star model, but limited by the size of the user is not the main revenue contribution; 3G revenue more relying on low-end models such as thousand-yuan machine users, so the company is expected to increase subsidies.　　East China Sea Securities analyst Kangzhiyi said that the fourth quarter is expected to spend about 2 billion yuan of mobile subsidy. But the scale of the fast-growing subsidy also means that the size of the company's users is growing, and data from operators confirms that Unicom has surpassed telecom in 3G. Among the three major operators, China Mobile announced TD data contains a large number of TD landline users, does not have a reference; and China Telecom's performance report this year has shown that the end of the two or three quarter of its 3G users total of 5.57 million households, 7.18 million households, 9.15 million households, the quarterly growth rate is 28.9% and 27.4%. China Unicom at the end of the first quarter of 3G users accumulated 4.824 million households below the same period, but by the end of September reached 10.55 million households than China Telecom; quarterly growth of 56.7 and 39.5% respectively, performance is also better than telecommunications.