China Unicom (762) H1 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 reached RMB197.3 billion, up 2.9% year-over-year; service revenue was RMB175.7 billion, up 2.7% year-over-year.

• EBITDA was RMB55.0 billion, up 2.7% year-over-year; profit attributable to equity shareholders was RMB13.8 billion, up 11.3% year-over-year, marking eight consecutive years of double-digit profit growth.

• Capital expenditure was RMB23.9 billion, down 13.4% year-over-year, reflecting effective investment control.

• Interim dividend of RMB0.2481 per share (pre-tax), up 22.2% year-over-year, was declared, with a payout ratio of 55%.

• Strong growth in cloud, digital, and international segments, with continuous improvement in profitability and business scale.

Financial highlights

• Net cash flow from operating activities was RMB29.29 billion; free cash flow after capex was RMB5.39 billion.

• Liabilities-to-assets ratio improved to 45.5% as of June 30, 2024.

• Basic earnings per share rose to RMB0.451, up 11.3% year-over-year.

• Total assets reached RMB667.7 billion, with total equity at RMB364.1 billion as of June 30, 2024.

• Operating costs ratio declined by 0.6 percentage points year-over-year.

Outlook and guidance

• Management targets steady operating revenue growth, double-digit profit growth, and capital expenditure stabilization within RMB65 billion for the full year.