Monday, May 04, 2009

Merger boosts telco's net profit

CHINA Unicom Ltd, one of China's three major phone companies, yesterday said it earned 3.6 billion yuan (US$525 million) in the first quarter this year following its merger with rival China Netcom.

The net profit for the three months ended March 31 was equal to 0.15 yuan per share, the Beijing-based telco said. It said no comparable 2008 figures were given because last year's financial reports were not prepared under the same standards.

China Unicom and China Netcom completed a merger in January as part of a government-orchestrated industry restructuring by creating three Chinese phone companies, each with mobile and fixed-line assets.

China Unicom was assigned a third-generation mobile phone license in January following the restructuring.

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