Sat, Oct 27, 2012 - Page 14 News List

Chungwa remains on top, but reports drop in earnings

By Kevin Chen  /  Staff reporter

Chunghwa Telecom Co (中華電信) yesterday reported that third-quarter earnings fell 14.6 percent year-on-year and 9.5 percent quarter-on-quarter, due to increased operating costs and mixed results from its major revenue generators.

Net income was NT$10.2 billion (US$348.1 million) in the third quarter, Chunghwa said in a statement. That was down from NT$11.93 billion a year earlier and less than NT$11.27 billion in the second quarter.

Earnings per share hit NT$1.31 in the quarter, compared with NT$1.54 in the third quarter last year and NT$1.46 in the second quarter, the company said.

Chunghwa remains the nation’s largest telecoms operator, whose revenue accounts for around half of the telecoms service market. However, in the third quarter total revenue fell 2.3 percent to NT$54.4 billion from a year earlier on the back of increased competition and regulatory tariff cuts, the company said.

The company enjoys a leading position in local and international telephony, mobile, broadband access and Internet services. However, in the July-to-September quarter, it reported annual increases in mobile and international telephony revenue, but saw sales declines in local telephony and Internet services.

The company’s earnings before interest, tax, depreciation and amortization (EBITDA) fell 7.6 percent to NT$20.27 billion in the third quarter compared to the same period last year, due to tariff cuts and higher sales from handset retail unit Senao International Co (神腦國際). Its EBITDA margin was 37.3 percent for the quarter, down from 39.4 percent a year ago.

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