Chunghwa Telecom Co (中華電信), the nation’s largest telecom operator by revenue, last week predicted net income for this year would be between NT$37.25 billion and NT$40.31 billion (US$1.27 billion and US$1.38 billion), with earnings per share of between NT$4.8 and NT$5.2.
Compared with last year’s net income of NT$38.86 billion, this would represent an annual growth rate of between minus 4.1 percent and 3.7 percent, a company statement said.
The company aims to increase its earnings before interest, taxes, depreciation and amortization (EBITDA) from NT$78.63 billion to between NT$79.11 billion and NT$82.79 billion, the statement said.
The statement came as the company reported its unaudited operating results for the final quarter of last year, showing its net income had increased 11.7 percent annually to NT$8.67 billion, or NT$1.12 per share, and revenue rose 4.4 percent to NT$60.92 billion, driven by mobile communications and domestic fixed communications revenues.
“We are pleased to report another quarter of solid financial and operating performance, rounding out a strong 2017, during which our full-year income from operation, net income and EBITDA exceeded our targets,” Chunghwa Telecom chairman David Cheng (鄭優) said on Wednesday in a statement.
Despite an increasingly competitive landscape in the local telecom market, the company retained a 36.6 percent share in mobile subscribers and a 37.2 percent share in mobile revenue, Cheng said.
He said Chunghwa Telecom is to focus on information and communications technology projects, smart devices, mobile value-added services and Internet TV business to maintain strong growth momentum this year.
Revenue is projected to increase by between 1.7 percent and 2.4 percent from NT$227.55 billion last year to between NT$231.47 billion and NT$232.97 billion, Cheng added.
Operating costs and expenses are predicted to reach between NT$182.07 billion and NT$184.24 billion, a 0.7 percent to 1.9 percent increase from last year’s NT$180.73 billion after factoring in a higher business income tax, the company said, adding that the higher expenses are also attributable to higher employee’s compensation and 4G license amortization.
This year, the company is to allocate NT$33.06 billion for capital expenditure, 22.4 percent more than last year’s NT$27.01 billion, as it plans to improve its fiber-to-the-X Internet (FTTX) service and mobile network quality, the statement said.
Meanwhile, Taiwan Mobile Co (台灣大哥大), the nation’s No. 2 telecom company, on Thursday forecast net income might drop 4 percent from NT$14.19 billion last year, or NT$5.21 per share, to NT$13.6 billion this year, or NT$5 per share, due to the company’s lower margin profile and increased depreciation and amortization in all segments.
Revenue is expected to rise 5 percent to NT$123.14 billion from NT$117.17 billion, the company posted on its Web site. The company attributed this to e-commerce business growth at its TV and online retailing subsidiary, Momo.com Inc (富邦媒體).
Capital expenditure is to drop by about 25 percent from NT$9.8 billion last year to NT$7.4 billion, with NT$4.9 billion allocated to the mobile segment, NT$1.4 billion to fixed-line services, NT$800 million to cable TV and NT$300 million to Momo.com and other subsidiaries, Taiwan Mobile said.
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