Mobile and internet services boost Chunghwa profit

13 Apr 2004

Taiwan’s dominant PTO Chunghwa Telecom reported that profit for the three months to 31 March 2004 rose 20% on the corresponding period of 2003, to TWD12.91 billion (USD392 million), driven by strong growth from its mobile and internet businesses. The company’s mobile arm posted a 9.4% rise in sales, but growth in the market is slowing due to saturation, and the industry is waiting patiently for the imminent launch of 3G services in the third quarter to fuel future growth. Meanwhile, sales at Chunghwa’s internet unit increased by 23.3% year-on-year, while broadband ADSL revenues jumped 22.5%; the company controls an estimated 90% share of Taiwan’s broadband market. Overall turnover was up 4.2%.