Chunghwa Telecom Co (中華電信), Taiwan’s largest telecommunications operator, posted profit that beat analysts’ estimates after high-speed Internet sales rose and the government cut the corporate tax rate.
Net income climbed 9.8 percent to NT$12 billion (US$390 million), Shen Fu-fu (沈馥馥), head of investor relations at the Taipei-based operator, said by phone yesterday. That compared with the NT$11.5 billion average of three analyst estimates compiled by Bloomberg.
In July, Chunghwa forecast net income of NT$11.9 billion.
Chunghwa boosted users of its high-speed optical fiber connections and raised mobile non-voice revenue by adding more channels to its Internet television service and offering Apple Inc’s iPhone 4. A government-mandated cut in fixed and mobile tariffs was offset by a reduction in the corporate tax rate.
The company’s shares fell 1.1 percent to NT$71 at the close of trading in Taipei yesterday, compared with the benchmark TAIEX’s 0.8 percent decline. The earnings were announced after the stock market closed for trading.
Third-quarter unconsolidated revenue climbed 1.1 percent to NT$46.8 billion, according to Bloomberg calculations. Chunghwa had forecast revenue of NT$46.4 billion. Pretax profit was NT$14.2 billion, compared with its own forecast of NT$14.1 billion, the company said in a statement.
Chunghwa had 1.9 million subscribers to its fiber-optic Internet service at the end of August, the latest month for which data is available, from 1.6 million at the start of the year, it said.
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