Chunghwa Telecom 1Q11 revenues increase 5.8%

3 May 2011

Taiwanese telco Chunghwa Telecom has reported consolidated revenues of TWD52.48 billion (USD1.83 billion) for the three months ended 31 March 2011. This figure represents an increase of 5.8% compared to 1Q10. Chunghwa’s mobile unit accounted for the lion’s share of the revenue, generating TWD22.48 billion, up 2.8% year-on-year. Domestic fixed line telephony provided TWD19.2 billion (up 11.6%), whilst broadband revenues accounted for TWD6.08 billion (up 3.6%). Finally, international revenues generated TWD3.79 billion (up 4.5%). EBITDA for Q1 decreased 6.6% to TWD22.0 billion, whilst CAPEX rose 5% year-on-year, to TWD4.38 billion. However, the company’s net income dropped slightly to TWD11.84 billion, representing a decrease of 1.9%. Chunghwa credits its ‘solid performance’ to strong value added services and handset sales.

In operational terms, at the end of March 2011 Chunghwa maintained its leading fixed line market position with a subscriber base of 12.29 million. Total broadband subscribers amounted to 4.4 million, of which 48.1% were FTTx subscribers (compared to 40.4% in March 2010), suggesting that Chunghwa’s attempts to encourage FTTx migration are yielding solid results. At the end of March Chunghwa reported 9.78 million mobile subscribers, up from 9.36 million one year earlier. Of these subscribers 5.6 million used the company’s 3G network, representing 177,000 new customers.

Dr Shyue-Ching Lu, Chairman of Chunghwa Telecom, commented: ‘We are pleased to report a solid performance in the first quarter of 2011. Total consolidated revenue reached TWD52.48 billion, with growth continuing to be driven by higher fixed line revenue … as well as strong mobile value added service (VAS) and handset sales. During the quarter, we continued to grow our traditional telecoms service business, as well as gaining new Information and Communication Technology (ICT) contracts. In order to leverage our strength in ICT, we have established a wholly owned subsidiary in China to function as an ICT solution provider. Looking ahead, we remain focused on pursuing growth by maintaining our operational focus on broadband, VAS, innovation and integration, at the same time as expanding our overseas business’.

Taiwan, Chunghwa Telecom