Chunghwa confirms 4G subscriber base totalled 1.33m at end-2014 as it publishes financials

16 Feb 2015

Taiwanese multi-service operator Chunghwa Telecom has published its financial results for the three- and twelve-months ended 31 December 2014.

Turnover in the last quarter of the year stood at TWD59.63 billion (USD1.93 billion), representing a 1.4% increase against the same period a year earlier, with revenues from mobile services accounting for 48.5% of that total, while domestic fixed line, international fixed line and internet services representing 32.9%, 6.3% and 11.2%, respectively. Mobile turnover was TWD28.90 billion, up 2.2% from the TWD28.29 billion recorded in Q4 2014, with Chunghwa attributing the development mainly to continued growth in mobile value added service (VAS) revenue and higher handset sales, which was slightly offset by lower mobile voice revenue resulting from increased competition and promotional packages. Total turnover in FY2014 meanwhile was TWD226.61 billion, down 0.6% year-on-year.

Total operating costs and expenses for the fourth quarter of 2014 increased by 6.7% to TWD50.89 billion, with the increase primarily due to the higher cost of handsets sold, increasing depreciation and amortisation expenses, the latter of which was linked in part to the telco’s 4G network construction and 3G network maintenance. Total operating costs and expenses for 2014 were TWD182.44 billion, representing a 1.1% increase, while EBITDA was TWD78.92 billion, down from TWD79.87 billion. Capital expenditures in the last three months of the year, meanwhile, declined by 11.4% y-o-y to TWD11.59 billion, while for the twelve-month period the total stood at TWD32.56 billion.

Chunghwa pointed to the uptake of its LTE-based services as an operational highlight, revealing that a total of 1.33 million customers had signed up to its offerings by the end of 2014, giving it a 38.6% 4G market share. Total mobile subscribers numbered 11.13 million, meanwhile, representing a 4.4% y-o-y increase, while 5.16 million were utilising mobile internet services, a figure which was up 31% against end-2013. In the fixed voice arena Chunghwa said it had retained its position as market leader with 11.37 million subscribers, while the number of fixed broadband accesses on its books totalled 4.539 million, down marginally from 4.553 million a year earlier.

Commenting on the company’s future expectations, Chunghwa chairman and CEO Dr Rick L. Tsai was cited as saying: ‘Going forward, we aim to continue expanding our 4G subscriber base to achieve our 40% market share target as well as focusing on the development of fixed and mobile value-added services. We will also promote our customized ICT solutions to enterprise customers across various industries. We remain confident that these initiatives will help solidify Chunghwa’s position as the leading integrated telecommunications service provider in Taiwan.’

Taiwan, Chunghwa Telecom