Chunghwa Telecom reports 1.6% increase in Q3 revenues

27 Oct 2010

Taiwanese telco Chunghwa Telecom has reported consolidated revenues of TWD50.9 billion (USD1.66 billion) for the three months ended 30 September 2010. This figure represents an increase of 1.6% year-on-year. Chunghwa’s mobile unit accounted for the lion’s share of the revenue, generating TWD22.3 billion, or 43.8% of total revenues. Fixed line telephony provided TWD17.5 billion (34.5%), whilst broadband revenues accounted for TWD5.1 billion (12.6%). International revenues generated TWD4.0 billion (7.9%) whilst the remainder was generated by other business segments, notably the consolidation of its subsidiaries. The company credits the slight improvement in quarterly revenues to the country’s economic recovery as well as its own marketing initiatives.

In operational terms, as at the end of September 2010, Chunghwa maintained its fixed line market position, with a subscriber base of 12.3 million. Total broadband subscribers amounted to 4.3 million, of which 1.96 million were FTTx subscribers, equivalent to 45.1% of the company’s total broadband subscriber base. During the third quarter, Chunghwa continued its efforts to migrate ADSL subscribers to its fibre alternatives. Chunghwa notes that whilst ADSL access revenues decreased as more of its ADSL subscribers switched, the decrease was fully offset by growth in FTTx access revenue. Chunghwa believes that this migration will continue as customers embrace its FTTx services, and that broadband revenue will increase steadily over time. Further, Chunghwa reports that the number of ADSL and FTTx subscribers with access to transmission speeds greater than 8Mbps reached 2.3 million by 30 September, representing 52.8% of its total broadband subscriber base, compared to 50.9% at the end of June 2010. At the same date, Chunghwa reported 9.6 million mobile subscribers, an increase of 4.3% compared to 9.2 million one year earlier. Of these subscribers 54.9% (or 5.3 million) used the company’s 3G network. SMS revenue rose 7.4% year-on-year, whilst mobile internet revenue increased 80%.

Dr Shyue-Ching Lu, Chairman of Chunghwa Telecom, commented: ‘I’m pleased to report a 1.6% year-over-year rise in revenue during the third quarter of 2010, driven by the continuing economic recovery and the success of our marketing initiatives. The solid revenue mix from our core business was boosted by an increase in mobile value-added services, internet services and broadband access revenues. Our prudent cost management initiatives resulted in stable operating income, with net income growing 9.5% year-over-year due to the tax rate reduction from 25% to 17%. Looking ahead, we expect to be able to report satisfactory performance for the full year 2010, with fourth quarter revenue projected to be TWD46.80 billion’.

Taiwan, Chunghwa Telecom