The nation’s three biggest telecoms yesterday posted annual declines in revenue and earnings as a result of fierce price competition.
The contraction came as adverse effect from their launches of NT$499 plans with unlimited Internet access magnified, which might spell bigger trouble in meeting their annual forecasts.
Chunghwa Telecom Co (中華電信) said that revenue last month sank 5.4 percent year-on-year to NT$17.77 billion (US$576.72 million) from NT$18.78 billion, as lower service revenue added to a constant slide in voice calls.
The service revenue reduction was “due to continuing market competition,” Chunghwa Telecom said in a statement.
Net profit tumbled 19.64 percent to NT$2.66 billion last month from NT$3.31 billion in October last year, while earnings per share dropped to NT$0.34 from NT$0.43.
In the first 10 months of the year, Chunghwa Telecom made NT$177.77 billion in revenue, 76 percent of its low-end forecast of NT$231.47 billion for the full year.
Aggregated net profits amounted to NT$32.46 billion, 87 percent of its low-end projection of NT$37.25 billion for this year.
Chunghwa Telecom on Wednesday last week said that it risks missing its annual financial forecast for the first time in its history.
Far EasTone Telecommunications Co (FET, 遠傳電信) yesterday posted monthly revenue of NT$7.31 billion for last month, which shrank 10.31 percent annually from NT$8.15 billion.
Net profit fell 21 percent to NT$715 million from NT$900 million in October last year, the company said in a separate statement.
FET accumulated NT$71.66 billion in revenue and NT$8.47 billion in net profit in the first 10 months, 80 percent of its revenue forecast and 81 percent of its net profit forecast for the whole of this year.
FET president Yvonne Li (李彬) on Monday said that the company is still trying to meet its financial targets.
Taiwan Mobile Co (台灣大哥大) yesterday said that revenue dropped 0.3 percent annually to NT$9.78 billion last month.
The slight decline, compared with its local rivals, came as the company saw 26 percent annual growth from its e-commerce subsidiary.
That brought the company’s revenue in the first 10 months to NT$96.95 billion, 79 percent of its full-year projection of NT$123.14 billion, it said.
Net profit contracted 6 percent year-on-year to NT$1.07 billion last month from NT$1.13 billion.
In the first 10 months, net profit totaled NT$11.62 billion, 91 percent of its forecast of NT$12.84 billion for the year.
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