For the first nine months of 2011, total revenue was NT$162.61 billion, a 8.3% increase compared to the same period last year. Of this total, 36.6% was contributed by the domestic fixed business, 42.4% was from the mobile business, 11.5% was from the Internet business, the international fixed business accounted for 7.0%, and the remainder was from others.
Costs and E xpenses
Total operating costs and expenses for the third quarter of 2011 amounted to NT$41.83 billion, an increase of 14.9% compared to the same period of 2010. This increase was mainly due to the higher cost of handsets sold, interconnection costs and transition fees resulting from the shift in pricing right of fixed-to-mobile calls, and the increase in corporate solution & ICT expenses and maintenance expenses.
Total operating costs and expenses for the first nine months of 2011 increased by 12.7% year-over-year to NT$119.37 billion, due mainly to the same reasons as for the third quarter.Income T ax Income tax expense for the third quarter of 2011 was NT$2.08 billion, representing a 9% decrease compared to NT$2.28 billion for the same period of 2010. The decrease was due to the lower income from operations. EBITDA and N et I ncome EBITDA for the third quarter of 2011 decreased by 4.1% to NT$21.9 billion, while income from operations decreased by 3.9% to NT$13.88 billion. The decreases in both EBITDA and income from operations reflected the higher operating costs and expenses. The EBITDA margin for the third quarter of 2011 was 39.38% compared to 44.98% in the same period of 2010, and the operating margin was 24.9%, compared to 28.4% in the previous year. Net income decreased by 0.2% year-over-year to NT$11.93 billion. Earnings per share increased by 25.2% year-over-year to NT$1.54, primarily due to the capital reduction in January 2011, which reduced the total number of outstanding shares by 20%. Cap ital Expenditure ( " Capex " ) Total capex for the third quarter of 2011 amounted to NT$6.66 billion, a 7.9% year-over-year increase. Of the NT$6.66 billion capex figure, 66.5% was used for the domestic fixed communications business, 13.4% was for the mobile business, 10.7% was for the internet business, 6.3% was for the international fixed communications business, and the remainder was for other uses. Cash Flow Cash flow from operating activities for the third quarter of 2011 decreased by 2.3% year-over-year to NT$19.1 billion. Business and Operational Highlights Broadband /HiNet
- As of September 30, FTTx subscribers had reached 2.32 million, accounting for 51.8% of total broadband users. This year, the Company is continuing to execute on its strategy to encourage FTTx migration. On June 22, the Company further reduced its broadband service tariffs, especially for speeds of 20Mbps and 50Mbps, to stimulate the momentum of migration and subscription. Although the lower broadband tariff had a temporary impact on the Company's revenue, the Company believes the speed upgrade will have a positive effect on its promotion of broadband value added services in the long run.
- HiNet broadband subscribers totaled 3.67 million at the end of September 2011, a year-over-year rise of 3.0%.
- As of September 30, 2011, Chunghwa had 9.96 million mobile subscribers, an increase of 4.0% compared to 9.58 million at the end of September 2010.
- As of September 30, 2011, Chunghwa had 1.32 million mobile internet subscribers compared to 653 thousand subscribers as of September 2010, demonstrating the strong growth momentum that the Company has achieved. Chunghwa expects to accumulate 1.47 million mobile internet subscribers by year-end.
- Mobile VAS revenue for the third quarter of 2011 rose 40.5% year-over-year to NT$3.92 billion, with mobile Internet revenue increasing 80.5% year-over-year, making it the largest contributor to VAS revenue.
- As of the end of September 2011, the Company maintained its leading fixed-line market position, with fixed-line subscribers totaling 12.24 million.
- As of October 28, 2011, Chunghwa's Multimedia-on-demand (MOD) subscriber number has reached over 980 thousand and continues to rise, suggesting that the enriched content is meeting customer needs.