Chunghwa Telecom cites impact of competition and COVID-19 as revenues dip in 2Q20

31 Jul 2020

Taiwan’s Chunghwa Telecom has published its financial results for the three months ended 30 June 2020, reporting that total turnover dipped by 4.6% in the quarter, to TWD47.81 billion (USD1.63 billion). It noted that, while ‘internet revenue’ had increased by 1% year-on-year, to stand at TWD7.43 billion, this had failed to offset a 7.8% drop in mobile revenue to TWD21.10 billion. Chunghwa attributed the decline in mobile revenue to falling handset sales and a drop off in mobile service revenue due to ‘market competition, VoIP substitution, as well as the impact of COVID-19 on roaming revenue’. Meanwhile, domestic fixed and international fixed revenues were also down, falling to TWD15.69 billion (down 1.2% y-o-y) and TWD2.18 billion (down 28.6%), respectively. Furthermore, Chunghwa reported that total operating costs and expenses had decreased by 6.6% y-o-y, to TWD37.19 billion, mainly due to lower interconnection costs and cost of goods sold. With EBITDA increasing by 1.4% in 2Q20, to TWD19.37 billion, the operator reported that net income remained flat, at TWD8.57 billion.

In operational terms, Chunghwa reported a mobile subscriber base of 11.09 million as of 30 June 2020, representing an annualised increase of 4.6%. In terms of fixed line activities, meanwhile, the telco continued to execute its strategy of encouraging FTTx migration, and said that at the end of the reporting period the number of FTTx subscribers on its books had reached 3.62 million, accounting for 82.8% of its total broadband users. Further, Chunghwa noted that the number of subscribers signing up for a tariff offering downlink speeds of 100Mbps or greater had increase by 11.5% y-o-y, to 1.67 million. Rounding out its areas of operation, while the telco claimed to have ‘maintained its leading position in the fixed line market’, the number of fixed voice subscribers it had continued to trend downwards, falling to 10.028 million at end-June 2020, from 10.163 million at the end of 2019.

Taiwan, Chunghwa Telecom