China Unicom Earnings: Underlying Industry Declines, Labor Expense Shuffling Exacerbated by VAT Hike
China Unicom's second-quarter service revenue rose 0.5%, but value-added tax increases and a 19% lift in employee expenses due to spending timing changes drove down EBITDA by 18% and net profit by 46%. Management said "the full-year contraction in profit is expected to narrow significantly."