Taiwanese multi-service provider Chunghwa Telecom (CHT) has reported a 15.2% year-on-year decline in net income for the second quarter of 2012. The telco posted net profit of TWD11.27 billion (USD379 million) in the three months to end-June 2012, as earnings before interest, tax, depreciation and amortisation (EBTIDA) fell by 3.6% to TWD22.58 billion. CHT pointed to increased operational costs and expenses as part of the reason for the decline in EBITDA, with higher costs atttibuted to handset sales cited as a key factor in such an increase. CHT meanwhile also highlighted that revenues had remained flat against the same period a year earlier, with the telco in 2Q 2012 recording a total turnover of TWD54.19 billion, with mobile revenue accounting for 45.7% of that total. Mobile turnover actually increased by 10.7% y-o-y, mainly CHT said thanks to higher revenues from value added services (VAS) and handset sales related to smartphone promotions. Internet revenues however fell by 4% against 2Q11 to TWD6.0 billion, a decline with the telco said stemmed from tariff reductions.
With CHT continuing to encourage its customers to migrate to its fibre-to-the-x (FTTX) services, at the end of June 2012 the telco recorded 2.61 million fibre broadband customers, up 18.5% y-o-y, and representing 57.2% of its overall high speed internet subscriber base. Mobile voice accesses meanwhile stood at 10.13 million, representing a 2.7% increase against end-June 2011. CHT also said it had two million mobile internet subscribers at the end of 2Q12, a figure which it claims keeps it on track to reach its target of 2.35 million such accesses by end-2012.
Dr Shyue-Ching Lu, CHT’s chairman and CEO, said of the company’s results: ‘In spite of continued regulatory pressure and intense market competition, we were very pleased that we were able to meet our earlier guidance for the first half of 2012.’