China Unicom Q1 net inches higher but lags forecast
HONG KONG, April 24 (Reuters) - China Unicom Ltd (0762.HK) (CHU.N), the smaller of the country's two mobile operators, on Thursday posted a meagre 1.5 percent rise in quarterly earnings, as margin pressure offset persistent growth in the world's largest telecoms market.
The mobile operator said net profit for the first three months amounted to 2.02 billion yuan ($289 million), compared with a marginally revised 1.99 billion yuan a year earlier.
That fell short of a forecast for 2.277 billion yuan, the average of 3 analysts' forecasts on Reuters Estimates.
Unicom and its far larger rival China Mobile Ltd (0941.HK) -- which commands two thirds of the market -- are trying to boost revenue by expanding value-added services, diversifying from traditional voice businesses.
But as market saturation slows the growth of new mobile subscribers in big cities, China's wireless telecoms duopoly are slugging it out to sign up lower-paying customers in less-affluent cities and rural areas, pressuring margins.
For China Mobile results, please click [ID:nCH0038139]
Shares in Unicom slid 8.9 percent in first quarter, compared with 17.8 percent fall in the benchmark Hang Seng Index .HSI. ($1=6.986 Yuan) (Reporting by Vinicy Chan; Editing by Anne Marie Roantree)
