Chunghwa FY revenues increase 2.1%; smartphone uptake and FTTx migration offer encouragement

24 Feb 2011

Taiwanese telco Chunghwa Telecom has reported consolidated revenues of TWD202.49 billion (USD6.85 billion) for the twelve months ended 31 December 2010. This figure represents an increase of 2.1% compared to 2009. Chunghwa’s mobile unit accounted for the lion’s share of the revenue, generating TWD89.04 billion, or 44% of the total, up 2.9% year-on-year. Fixed line telephony provided TWD70.69 billion (down 1.1%), whilst broadband revenues accounted for TWD24.48 billion (up 3.5%). Finally, international revenues generated TWD15.64 billion (up 2.6%). The company credits the slight improvement in annual revenues to the country’s continued economic recovery and the increasing popularity of the smartphone.

In operational terms, at the end of December 2010, Chunghwa maintained its fixed line market position, with a subscriber base of 12.31 million. Total broadband subscribers amounted to 4.4 million, of which 46.7% were FTTx subscribers (compared to 38.1% in December 2009), suggesting that Chunghwa’s attempts to encourage FTTx migration have yielded solid results. 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. At the same date, Chunghwa reported 9.68 million mobile subscribers, an increase of 4.4% compared to 9.27 million one year earlier. Of these subscribers 5.43 million used the company’s 3G network, representing additions of 694,000 new customers. Mobile internet revenue grew 81.7% year-on-year, making it the largest contributor to VAS revenue.

Dr Shyue-Ching Lu, Chairman of Chunghwa Telecom, commented: ‘We are pleased to report another year of solid performance. Total consolidated revenue for 2010 reached TWD202.49 billion, with the increase mainly driven by stronger mobile VAS, handset sales and internet services. We have several major achievements in 2010. The popularity of the smartphone and the economic recovery resulted in higher traffic volume, which in turn boosted the momentum of telecoms industry growth. In addition to our traditional telecoms service offerings, we successfully launched selected Information and Communications Technology (ICT) services, and were delighted to be awarded major contracts. We also introduced new initiatives relating to ICT and converged services, and were able to offer customers configured cloud computing and consolidated and repackaged solutions’.

Taiwan, Chunghwa Telecom