Tue, Jul 13, 2010 - Page 12 News List

Far EasTone sees profits decrease from last year

By Lisa Wang  /  STAFF REPORTER

Far EasTone Telecommunications Co Ltd (遠傳電信), the nation’s No. 3 telecom operator, yesterday posted net profits for last month of NT$726 million (US$22.51 million), down from a year ago because of a 5.87 percent year-on-year price reduction required by the telecom regulator the National Communications Commission.

In the period from April to last month, Far EasTone accumulated net income of NT$1.95 billion, down 16 percent from NT$2.31 billion a year earlier, after tariff cuts took effect in April.

Company spokeswoman Alison Kao (高治華) blamed lower tariffs for the decline, but stressed that the phone company made a total of NT$4.26 billion in the first 6 months of this year, matching its financial forecast.

Unlike rival Chunghwa Telecom Co (中華電信), Far EasTone said it did not benefit from new business tax rates because of its smaller revenue scale.

Revenues also fell by 1.2 percent to NT$14.86 billion in the second quarter, from NT$15.05 billion in the same period of last year. In the first half of this year, Far EasTone made NT$29.57 billion in revenue, down 1.17 percent from NT$29.93 billion the previous year.

Far EasTone shares yesterday rose 1.6 percent to close at NT$44.2 per share.

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