China Unicom 2016 profit plunges 94 pct, in line with company estimate

Sijia Jiang

HONG KONG, March 15 (Reuters) - Chinese state-owned

telecommunications network operator China Unicom Hong Kong Ltd

said on Wednesday net profit fell 94 percent last

year, as expected, due to a rise in operating and marketing

costs.

Profit fell to 630 million yuan ($91.16 million) from 10.56

billion yuan in 2015. In January, the company said it expected

2016 profit to slide 94 percent. Revenue fell to 274.20 billion

yuan from 277.05 billion yuan.

The telco blamed the decline on additional operating and

support expenses after disposing of network signal towers, as

well as a substantial increase in sales and marketing costs.

China Unicom is in the first batch of state-owned

enterprises marked for a pilot mixed-ownership programme.

($1 = 6.9110 Chinese yuan renminbi)

(Reporting by Sijia Jiang; Editing by Christopher Cushing)