TAIPEI, Taiwan, April 30, 2012 /PRNewswire-Asia-FirstCall/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its operating results for the first quarter of 2012. All figures were prepared in accordance with generally accepted accounting principles of the Republic of China ("ROC GAAP") on a consolidated basis.
(Comparisons, unless otherwise stated, are to the prior year period)
First Quarter 2012 Financial Highlights
- Total consolidated revenue increased by 5.6% to NT$55.4 billion
- Mobile communications revenue increased by 12.0% to NT$25.6 billion; mobile value-added services (VAS) revenue increased by 29.2% to NT$4.6 billion
- Internet revenue increased by 1.7% to NT$6.2 billion; internet VAS revenue increased by 1.6% to NT$0.6 billion
- Domestic fixed communications revenue decreased by 1.1% to NT$19.0 billion
- International fixed communications revenue decreased by 4.0% to NT$3.6 billion
- Total operating costs and expenses increased by 14.4% to NT$44.1 billion
- Net income totaled NT$9.5 billion, representing a 19.8% decrease
- Basic earnings per share (EPS) decreased by 18.7% to NT$1.22
Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer, said, "We began 2012 with a solid market leadership for all of our major business segments. For the first quarter, our growth was driven primarily by mobile business such as value-added services, increase of mobile internet subscribers, and innovative mobile service marketing. In addition, our MOD/IPTV is also gaining traction due to both increased ARPU and market share. We have executed well against the interim set-backs from the various business and regulatory environment. We will continue to poise Chunghwa Telecom for growth and share gains as markets stabilize. Our strong market leadership, quality product portfolio, strong cash generation and healthy balance sheet give us the confidence in delivering a resilient overall performance."Chunghwa's total consolidated revenue for the first quarter of 2012 increased by 5.6% year-over-year to NT$55.4 billion, of which 34.3% was from the domestic fixed business, 46.2% was from the mobile business, 11.2% was from the internet business, 6.6% was from the international fixed business, and the remainder was from others. The revenue growth was primarily due to the increase in mobile VAS revenue and handset sales. However, this increase was offset by the decline in mobile voice revenue. Additionally, the decline in Domestic Long Distance ("DLD") and broadband revenue from the tariff cuts also partially offset the overall growth. Domestic fixed revenue totaled NT$19.0 billion, representing a decrease of 1.1% year-over-year. Of which, local revenues increased by 1.9% year-over-year, mainly due to the shift of pricing right for fixed to mobile calls. The 32.2% decline in DLD revenues was due to the mandatory tariff cut starting 2012. However, the tariff cut stimulated the overall traffic growth, resulting in less revenue impact than previously anticipated. Broadband access revenue, including ADSL and Fiber to the x ("FTTx"), decreased by 9.2% year-over-year to NT$4.7 billion, primarily due to the Company's voluntary broadband tariff reductions, as well as the mandated the National Communication Committee ("NCC") tariff reduction. Total revenue for the mobile business amounted to NT$25.6 billion for the first quarter 2012, representing a year-on-year increase of 12.0%, mainly due to the 29.2% growth in mobile VAS revenue and 53.7% increase in handset sales from smartphone promotions, which offset the decline in mobile voice revenue. The decline in mobile voice revenue resulted primarily from the fixed to mobile calls pricing right shift, the marketing campaign and the NCC mandated tariff reduction. Chunghwa's internet business revenue grew to NT$6.2 billion in the first quarter of 2012, representing an increase of 1.7% year-over-year, due to the higher revenue for ICT business and internet VAS, offsetting the HiNet revenue decline from the tariff cut along with broadband access services. International fixed line revenue decreased by 4.0% to NT$3.6 billion, primarily due to the decrease in international long distance service revenue as a result of market competition. Other revenue increased by 81.6%, primarily due to construction revenue from the property development subsidiary, Light Era.