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

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.