This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Operating Expenses Hurt Chunghwa's Earnings

Once these most recent quarterly results are finalized, they will be run through Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit Ratings Screener.

On March 30, 2009, Chunghwa Telecom (CHT - Get Report) reported an 18.9% drop in its Q4 FY08 earnings, impacted by an increase in operating expenses and impairment loss on assets. Net loss was North Taiwanese Dollar (NT$) 8.49 billion or NT$0.82 per American depository share (ADS) compared to NT$10.46 billion or NT$1.01 per ADS in Q4 FY07.

Revenue grew marginally to NT$46.72 billion from NT$46.39 billion in the prior year's quarter. Segment-wise, revenue from the Internet and Data segment was 2.6% higher than the same period last year. However, Mobile revenue decreased 1.4%, mainly due to a decrease in traffic, whereas Mobile VAS revenue increased 19.8%. Furthermore, Fixed Line revenue inched down 2.4% year-over-year. Meanwhile, the company had 322,000 net additions to its 3G subscriber base, an increase of 9.9% quarter-over-quarter, resulting in a total number of 3G subscribers of 3.56 million as of December 31, 2008.

During Q4 FY08, Chunghwa secured the right to sell Apple Inc.'s 3G iPhone in Taiwan. It also signed a deal with Warner Music Taiwan and Waner's pop diva Jolin Tsai to make inroads into the digital music market. Additionally, Chunghwa, China Unicom Ltd. and KDDI Corp. plan to jointly build a $500.00 million undersea cable called APCN3. Moreover, So-net Entertainment Corp. formed an operational alliance with Chunghwa to expand its internet services. Chunghwa will acquire a 30.0% stake in So-net for Japanese Yen 170.00 million. Recently, it announced a cash dividend of NT$3.83 per share.

Chunghwa's net sales for FY08 increased marginally to NT$186.78 billion from NT$186.33 billion in the previous year. However, net earnings slipped 6.7% to NT$45.01 billion or NT$4.63 per share from NT$48.25 billion or NT$4.93 per share in FY07.

Going forward, CHT expects its capital expenditure to remain in between NT$30.00 billion to NT$32.00 billion over the next 2 to 3 years.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CHT $31.56 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $155.00 -12.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs