China Unicom has warned that its full year profits for 2009 is likely to be down by around 50% compared to its results for 2008. The sharp drop is due to the elimination of a one-off gain in 2008 when the company sold its CDMA business to China Telecom as part of the government mandated restructuring of the Chinese telecoms market.
In addition, the WCDMA business of the Company, which commenced operations on 28 September 2009, has had an impact on the profit of the Company for the year ended 31 December 2009 due to the high costs and expenses incurred at its initial stage of operation.
The preliminary announcement will be followed up in March when the final results are published.
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