Recently, China United Network Communications Co., Ltd. announced the 2016 earnings, which announced the annual net profit of 2016, hit the record since the 15 years the worst record - down 96% year on year.
This figure is too horror, so the media have issued a discussion. Because in 2015 China Unicom lost a large number of users, then the net profit also fell by 12%, while in 2016 this 96% decline than the parties expected.
Because China Unicom may be the first batch of mixed reform of the giant state-owned enterprises, so its every move is striking,China Unicom how it? What does this 96% decline mean? What will China Unicom do in the future?
First, the reason for the sharp decline in net profit
In fact, we look at the earnings, you will find Unicom other business indicators change is not too great. China Unicom in 2016 operating income was 274.197 billion yuan, down 1.02% year on year. Revenues were $ 240.982 billion, up 2.4% year-on-year and EBITDA (excluding interest, taxes, depreciation and amortization) of $ 79.5 billion, down 9.10%.
Often EBITDA is considered to represent the true business of the business. China Telecom increased by 6.9%, China Telecom increased by 1.09%, China Unicom did not perform well, but did not reach the worst point in history, 2012 Unicom's EBITDA is 72.66 billion, more than this year Low, but then Unicom's net profit is 7.096 billion yuan.
Therefore, although the performance of China Unicom is not good, but there is no difference so outrageous.
Unicom's net profit fell sharply, the main problem is not business, but profits are taken to invest in infrastructure.
According to China Unicom's figures, as of October 2015, China's total number of broadband access users reached 212 million, FTTH / O fiber access to the total number of 110 million, accounting for 51.8% of the total number of broadband users. By the end of 2015, when China Unicom is the completion of the three provinces and one city of all-optical network.
And 2016, China Unicom to complete the national light to change:According to market demand to complete the city more than 20M, more than 8M rural transformation; complete DSLAM retreat. To March 2016, China Unicom has been built all the optical network province 7, all optical network city 118; fiber home households covered 160 million households. 2016 at the end of the year, although there is no all-optical network, but has built 10, and this investment is huge.
In the optical network at the same time, China Unicom is still in the 4G base station force,To the end of the 4G base station has reached 740,000, to achieve the national township over the continuous coverage, this investment is huge.
Therefore, China Unicom profits decline no figures look so horrible, mainly the construction of the occupation of funds, resulting in a substantial decline in net profit.
Second, the business is really not optimistic
Although 96% exaggerated the point, but than EBITDA,China Unicom is also the weakest inside the three, China Unicom's business is indeed some problems.
Fixed broadband services have always been the focus of China Unicom's broadband business, but the business has been a declineThe In November last year, the number of broadband users decreased by 70,000, in December and decreased by 16.6 million, even in October last year was not fixed-line broadband management of China Mobile catch up.
In 2016, when the amount of infrastructure invested in the case of construction, China Unicom's fixed-line business grew only 3.72%. China Mobile does through the low-cost, gift, etc., eroded a lot of China Unicom's broadband users. In December, telecommunications broadband users increased by 890,000, mobile increase of 440,000, China Unicom fell 16 million. Unicom really did not do well
And in 2016, the cost of stripping the tower began to count, in 2016 only 46.24 billion electricity, network operations and support costs increased by 20.9%, which also overwhelmed China Unicom.
At the same time, the national policy of speed reduction fees also have a great impact on China Unicom, China Unicom Chairman Wang Xiaochu said: "The speed reduction policy mainly affect the roaming business revenue quarterly reduction of 1.58 billion yuan, but also estimated that consumers will use Has risen. "A quarter of 1.5 billion, 6 billion a year profit, and China Unicom this year, a total of only 63 million in profits last year, plus the income of the tower, but also 10.56 billion. The impact of national policy on China Unicom should not be overlooked.
Unicom's business is really not optimistic.
Third, mixed or become a way out
Since October last year, China Unicom announced that it has been included in the list of mixed ownership reform pilot, the mixed news wave after wave, the Internet Big Three BAT also participate in China Unicom's reform. In this regard, the major brokers are released research report that optimistic about China Unicom's mixed change.
For China Unicom, the main thing to solve is the income problem, the Chinese operators have been pipelined. The Internet industry is profitable, but operators can only charge the cost of network services. Operators have repeatedly tried to expand the business to the Internet, such as mobile Fetion. But this kind of attempt is basically die a natural death.
The reason is simple, the state-owned enterprise system is not suitable for free competition of the Internet, the advantage of state-owned enterprises is the natural monopoly of the industry, in such industries, state-owned enterprises are restricted, to provide the community with relatively cheap public services. And to the free competition industry, than innovation, than the incentive, state-owned enterprises is not appropriate.
China Unicom engage in mixed reform, after the institutional changes, there is hope that the Internet giants combined, the use of resource integration to obtain new benefits. As the Internet's highest level of entry, BAT's business model can be found in the profit point, the entrance to play well, Unicom will not rigidly adhere to the district's traffic costs and telephone charges.
Internet entrance is the highest level of advertising entrance, electricity providers can give drainage, the game can be recommended, play out the advantages of China Unicom or promising.
Therefore, China Unicom should strive to strengthen the infrastructure, the first stable entry, first of all to high-speed network access to adequate users, and then to talk about the issue of the highest level of entry.
Therefore, the mixed change is likely to become the future of China Unicom.