China Unicom +2.3% as turnaround looks to outweigh early-2016 slide

|By:, SA News Editor

China Unicom (NYSE:CHU) is up 2.3% in U.S. trading despite noting preliminary profits that are set to slide for the first nine months of the year as it invested to keep up with market leader China Mobile (NYSE:CHL).

A turnaround may be in the offing, though, as the company's heavy network investments in 4G begin to pay off with subscriber additions.

Preliminary net income tumbled to about 1.59B yuan (about $236M), vs. 8.18B yuan ($1.21B) in the prior year's first nine months.

In just September, though, the company expects record net additions of 6.05M 4G subscribers, well up from August's 5M. Overall, it added about 9.76M wireless subs, bringing its total to 262M.

Full earnings are set to come on Thursday.