Tue, Mar 12, 2019 - Page 12 News List

Chunghwa Telecom posts slight bump in earnings

BESTING RIVAL:Bucking a downward trend in the industry, Chunghwa Telecom saw net profit increase 1.2 percent to NT$3.02 billion last month, returning to annual growth

By Lisa Wang  /  Staff reporter

Chunghwa Telecom Co (中華電信), the nation’s biggest telecom operator, yesterday posted earnings per share of NT$0.39 for last month, a slight increase that helped it secure a rare win over rival Taiwan Mobile Co (台灣大哥大).

Bucking a downward trend in the industry, Chunghwa Telecom saw net profit increase 1.2 percent to NT$3.02 billion (US$97.7 million) last month — returning to annual growth — compared with NT$2.98 billion, or earnings per share of NT$0.38, for the same month last year.

Revenue sank 8 percent to NT$16.52 billion last month from NT$17.95 billion in February last year, the company said.

“A slide in mobile service revenue and handset sales offset growth in revenue from Internet applications and the MOD [multimedia-on-demand] system, attributable to market competition,” Chunghwa Telecom said in a statement.

In January and last month, the company saw aggregated net profit slide 3.64 percent to NT$5.82 billion from NT$6.04 billion in the same period last year — a dip in earnings per share to NT$0.75 from NT$0.78, company data showed.

The results matched the company’s financial forecast for this year, it said, adding that so far this year, it has registered 10.58 million mobile subscribers and 2.04 million Internet TV subscribers.

Taiwan Mobile yesterday reported that net profit last month fell about 10 percent year-on-year to NT$955 million, compared with NT$1.06 billion in February last year, while earnings per share fell to NT$0.35 from NT$0.39.

As a result, total profit in the first two months fell 11.2 percent to NT$2.03 billion from NT$2.29 billion in the same period last year, while earnings per share fell to NT$0.75 from NT$0.84.

Taiwan Mobile’s revenue fell 4.84 percent to NT$9.43 billion last month, from NT$9.91 billion a year ago, which brought the company’s combined revenue in January and last month to about NT$19.94 billion, down 2.1 percent annually from NT$20.37 billion.

“For our telecom business, despite a higher percentage of in-contract subscribers in May last year and successful customer retention, our post-paid churn rate hit a record low since we began offering 4G services,” Taiwan Mobile chief financial officer Rosie Yu (俞若奚) said in a statement.

However, cost and expense rationalization helped mitigate the effects of a decline in mobile service revenue, Yu said.

Far EasTone Telecommunications Co Ltd (遠傳電信) saw net profit decline 9.77 percent year-on-year to NT$702 million last month from NT$778 million a year earlier, while earnings per share fell to NT$0.22 from NT$0.24.

In the first two months of the year, Far EasTone’s net profit contracted 9.76 percent to NT$1.48 billion from NT$1.64 billion in the same period last year, while earnings per share fell to NT$0.46 from NT$0.5.

The company’s revenue fell 5.64 percent to NT$6.52 billion from NT$6.91 billion a year earlier, while combined revenue in the first two months slid 3.96 percent to NT$13.81 billion from NT$14.38 billion in the same period last year.

Far EasTone said that its customer churn rate last month slid to the lowest level in four years, an indication of customer loyalty.

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