China Unicom (762) H2 2023 earnings summary

Executive summary

• 2023 operating revenue rose 5.0% to RMB 372.6 billion; net profit attributable to equity shareholders increased 11.8% to RMB 18.7 billion.

• ROE reached 5.4%, described as a recent-years record high, reflecting improved profitability and investment returns.

Financial highlights

• Operating revenue was RMB 372.6 billion, up 5.0% YoY; net profit attributable to equity shareholders was RMB 18.7 billion, up 11.8%.

• Total operating expenses rose 4.4% to RMB 357.6 billion, while expenses declined to 96.0% of revenue from 96.5%.

• Operating cash flow increased to RMB 102.4 billion from RMB 100.5 billion; free cash flow rose to RMB 28.5 billion from RMB 26.3 billion.

Outlook and guidance

• 2024 guidance calls for steady operating revenue growth and double-digit growth in profit before tax.

• 2024 CAPEX is guided at RMB 65.0 billion.

• 2024 priorities include connectivity and communications, computing-network integration, big data, digital smart applications, international development, AI innovation and cybersecurity.