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Chunghwa Telecom Profits Down on Lower Mobile Tariffs
Published on:
Taiwan based Chunghwa Telecom's has reported that its revenue for the second quarter of 2012 was flat at NT$54.19 billion (US$1.8 billion). Net income totaled NT$11.27 billion (US$376 million), representing a 15.2% decrease.
The mobile VAS revenue and handset sales kept its growth momentum. However, the growth was offset by the decline in mobile voice revenue attributable to the marketing campaign and the NCC tariff reduction. The decline in Domestic Ling Distance (DLD) and broadband revenue due to tariff cuts also contributed to overall flat growth.
Total revenue for the mobile business amounted to NT$24.74 billion for the second quarter 2012, representing a year-on-year increase of 10.7%, mainly due to growth in mobile VAS revenue and handset sales relating to smartphone promotions, which offset the impact of market competition and the NCC tariff reductions.
As of June 30th 2012, Chunghwa had 10.13 million mobile subscribers, a 2.7% increase year-over-year.
Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer of Chunghwa Telecom, commented, "In spite of continued regulatory pressure and intense market competition, we were very pleased that we were able to meet our earlier guidance for the first half of 2012. In an effort to stay ahead in this evolving telecom landscape, we continue to take proactive steps in key growth areas necessary to stabilize our core business, while making notable progress in capturing new business opportunities."
Total capex for the second quarter of 2012 amounted to NT$7.54 billion, a 36.0% year-over-year increase. Of the NT$7.54 billion capex figure, 61.6% was used for the domestic fixed communications business, 22.0% was for the mobile business, 6.3% was for the internet business, 7.6% was for the international fixed communications business, and the remainder was for other uses.
Tags: [chunghwa telecom] [Taiwan]
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