Falling fixed line sales drag down Chunghwa

28 Apr 2005

Overall revenue at Taiwan’s state-controlled telco Chunghwa Telecom slipped 2.4% to TWD44.5 billion (USD5.8 billion) in the first quarter of 2005. Growth of 0.5% and 2.6% from wireless and internet services respectively was not enough to off-set a 7% drop in fixed line revenues. Though the company’s reliance on the fixed line segment is falling, the segment still accounts for 37% of Chunghwa’s total sales, with mobile services contributing 39% and nearly all of the remainder coming from the internet unit. In terms of subscriber numbers, at the end of March 2005 Chunghwa had 13.26 million fixed line customers, 8.17 million mobile users and 3.87 million internet subscriptions. In a separate but related story, Chunghwa stated that it expects full year 2005 revenues to come in at TWD180 billion and net income to be TWD42.3 billion, down slightly on the corresponding figures for 2004.

Taiwan, Chunghwa Telecom