China Unicom Q3 Revenue Rises, But Profit Declines 33.6%

China Unicom’s revenue increased marginally in the first three quarters of 2026, while profitability declined significantly, according to a recent filing with the Hong Kong Exchange. The company reported operating revenue of RMB 294.6 billion, up 0.6% year-on-year, but profit attributable to equity shareholders dropped 33.6% to RMB 13.3 billion.

The revenue increase was partially driven by strong performance in the computing power segment, which grew 12.2% year-on-year, with IDC revenue increasing by 10.4% over the same period. This growth reflects China Unicom’s strategic focus on expanding beyond traditional connectivity services into higher-margin digital infrastructure. The company’s total number of connections exceeded 1.3 billion, with mobile and broadband subscribers increasing by 12.40 million and IoT connections gaining over 66 million.

Despite the top-line growth and expansion in computing power, the substantial decline in profitability raises concerns. The filing does not detail the specific factors contributing to the profit decrease, but broader economic headwinds in China—including weakening consumer spending and rising youth unemployment—may be playing a role. The company reported profit before income tax of RMB 16.2 billion.

Operational statistics for the third quarter of 2026 show continued growth in key areas. The company reached 255.632 million 5G network subscribers, and 789.700 million Internet-of-things terminal connections. Furthermore, the number of paying users for Cloud-AI products reached 123.500 million, indicating progress in diversifying its service offerings. The company also reported 0.562 million major institutional and industry customers served by Unicom Cloud.

China Unicom’s results reflect a complex operating environment. While the company is successfully expanding its connectivity infrastructure and digital services, the significant decline in profitability suggests challenges in translating revenue growth into bottom-line gains, particularly given the broader economic slowdown and evolving competitive landscape in the Chinese telecommunications market.