Chunghwa Telecom Revenues Down - Profits Up

Taiwan's Chunghwa Telecom has reported a slight drop in first quarter revenues of 3.6% to NT$49.1 billion (US$1.46 billion), although profits rose by 0.7% to NT$10.8 billion (US$320 million). Mobile revenue decreased 3.1% to NT$17.6 billion (US$522 million); mobile VAS revenue increased by 18.5%.

Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer of Chunghwa Telecom commented, "For the first quarter of 2009, we continued to executive on our strategic focus of maintaining market leadership for our core services as well as expanding our digital-converged services such as broadband and mobile value-added services, MOD/IPTV, and key enterprise solutions. As a result, we are able to stabilize our top-line performance under the current adverse economic situation."

EBITDA for the first quarter of 2009 decreased by10.7% year-over-year to NT$23.4 billion (US$694 million), resulting in an EBITDA margin of 47.6%, down from 51.3% for the first quarter of 2008. The EBITDA decline was primarily due to the decrease in revenue and the increase in operating expenses.

As of March 31, 2009, Chunghwa had 8.98 million mobile subscribers, up 2.9% compared to 8.72 million as of the first quarter of 2008. Chunghwa reported that of its base, 3.85 million are 3G subscribers, representing a 48.9% increase as compared to that of the end of March 2008.

Chunghwa remained the leading mobile operator in Taiwan. According to statistics published by the ROC National Communications Commission, the Company's total subscriber market share (including 2G, 3G and PHS) was 35.1%, while the Company's mobile revenue share was 34.0% as of the end of February 2009.

Chunghwa will not provide full-year guidance for 2009 due to the current global economic environment, decreased visibility, and increased market volatility. Chunghwa will instead issue guidance on a quarterly basis for 2009.

Posted to the site on 29th April 2009