Leadership shuffle at China Unicom - Carrier\cn-c114 C114 - Chin. Worldwide VoIP Providers Directory < VoIP | VoipProvidersList.co. Top 500 Ranking: Face Value. TNS Survey finds price and network performance key to 3G takeoff. China Unicom 2010 Q1 profit plunges 68% April 29, 2010 (Chinavestor) Shares of China Unicom (NYSE:CHU) (HKG:0762) fell -3.2% in Hong Kong and shed -1.70% in New York by 2:00 P.M. following 2010 first quarterly report. China's second largest mobile carrier reported 2010 first quarter total revenues of RMB40.415 billion ($5.943 billion), up 6.6% from same period a year ago. Net income fell to RMB1.129 billion ($166 million) from RMB3.566 billion ($524.4 million) a year ago.
As the following chart testifies it's costs - mostly related to 3G marketing - that is denting into profits. China Unicom (NYSE:CHU) was able to grow its customer base - albeit at the slowest speed among China Mobile (NYSE:CHL) and China Telecom (NYSE:CHA). But the lack of bottom line growth- actually a negative growth - is due to the costs associated with building and marketing costs of a 3G network. Comparing China Unicom (NYSE:CHU) to China Mobile (NYSE:CHL), the difference in performance is striking!