(Telecompaper) China Unicom has warned of a sharp fall in profit on lower service revenue in the first quarter. Despite showing a recovery in the mobile market with net additions of 6.61 million subscribers, the company said mobile service revenue was down 1 percent year-on-year, at CNY 36.2 billion. Total revenue at the operator was CNY 60.8 billion, according to the preliminary report, an increase both year-on-year and versus Q4 2015. However, net profit fell by around 85 percent to CNY 480 million, mainly due to a 16 percent rise in selling and marketing expenses and a 37 percent increase in network, operation and support expenses.