Fri, Feb 01, 2008 - Page 11 News List

Taiwan Mobile Co projects US$119m in profit this quarter

By Lisa Wang  /  STAFF REPORTER

Taiwan Mobile Co (台灣大哥大), the nation's second-largest telecom service carrier, yesterday projected that first quarter net income would increase by 5 percent from a year earlier after combining its fixed and cable TV businesses.

Net income this quarter is expected to rise to NT$3.83 billion (US$119 million) this quarter, compared to NT$3.81 billion in the same period of last year, according to the company's statement.

Earnings per share, however, will grow faster to NT$1.31 a share, from NT$0.77 a share, in the wake of a 24 percent reduction in capital and outstanding shares.

Revenues would rise around 19 percent year-on-year to NT$17.21 billion after merging its cable TV and fixed subsidiaries.

In addition, Taiwan Mobile yesterday also said it would allocate a payout of NT$7.6 billion, or NT$2 per share, in cash dividends to shareholders.

This was based on last year's net income of NT$6.61 billion in net profits.

Capital spending this year will increase slightly to NT$8 billion including its upgrading of 3G mobile networks and fiber deployment for fixed service, compared to NT$7.06 billion last year, the company said.

Taiwan Mobile shares were unchanged at NT$46 yesterday.

The telecom company holds 30 percent of the nation's mobile market.

Anand Ramachandran, an analyst at Citigroup Global Markets, issued a "buy" rating on Taiwan Mobile, citing good dividend payout.

He gave a target of NT$51 in a notice to clients yesterday.

This story has been viewed 3830 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top