China Unicom (762) H2 2024 earnings summary

Executive summary

• Operating revenue grew 4.6% year-over-year to RMB 389.6 billion, with net profit up 10.1% to RMB 20.6 billion and return on equity rising to 5.8%.

• Dividend payout ratio increased to 60%, with a full-year dividend of RMB 0.4043 per share, up 20.1% year-over-year.

• Subscriber base reached 470 million mobile and broadband users, 620 million IoT connections, and 76 million Internet of Vehicles connections.

• Company included in the FTSE China A50 index and received multiple industry and ESG accolades.

• Return on equity improved by 0.4 percentage points to 5.8% in 2024.

Financial highlights

• Unicom Cloud revenue rose 17.1% year-over-year to RMB 68.6 billion; data center revenue increased 7.4% to RMB 25.9 billion.

• International business revenue grew 15.2% year-over-year to RMB 12.5 billion.

• Service revenue was RMB 345.98 billion, up 3.2% year-over-year.

• EBITDA reached RMB 99.42 billion, representing 28.7% of service revenue.

• Net contract value of intelligent computing businesses exceeded RMB 26 billion.

Outlook and guidance

• CapEx for 2025 is projected at around RMB 55 billion, with a 28% year-over-year increase in computing power investment.

• Special budgets allocated for AI and key projects to drive future growth.

• 2025 targets include sound growth in revenue, profit, and ROE, with enhanced innovation momentum.