Chunghwa Telecom issues guidance for 2014

29 Jan 2014

Taiwan’s Chunghwa Telecom has reported its guidance for 2014 on a consolidated basis, with the company saying that it expects total turnover to remain roughly unchanged, forecasting a 0.1% rise to TWD228.23 billion (USD5.521 billion) for the coming year. Expected increases in revenue resulting from ongoing promotions for mobile internet, as well as growth in handset sales, are likely to be offset by the expected decline in voice revenue as a result of traffic reductions, it noted. Broadband revenue is, meanwhile, expected to be flat year-on-year due to market competition. Operating costs and expenses for 2014 are forecast at between TWD4.21 billion and TWD184.70 billion for 2014, with an increase in capital expenditures for operator’s fixed and mobile broadband businesses anticipated to result in higher depreciation and maintenance expenses. CAPEX for 2014 is budgeted to increase by TWD3.72 billion compared to 2013, to TWD40.13 billion, with the increase primarily linked to costs associated with Chunghwa’s 4G network rollout, as well as its development of fibre-based broadband services, among other things. Comprehensive income attributable to stockholders of the parent is expected to be TWD35.84 billion in 2014, representing a decline of TWD2.86 billion.

Commenting on the plans for the year ahead Dr. Rick L. Tsai, chairman and CEO of Chunghwa Telecom, noted: ‘Our chief focus for 2014 is on the seamless rollout of 4G services in the second half of the year, with the aim to be not only the first 4G operator in Taiwan, but also the best 4G operator in terms of service and network quality. Facing market saturation and competition on broadband business, we will continue to support growth through offering attractive convergence plans and facilitating higher-speed migration. Lastly, we plan to launch ground-breaking 300Mbps speed services, helping us to solidify our technological superiority and maintain our market leading position.’

Taiwan, Chunghwa Telecom