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TheStreet Open House

Chunghwa Telecom Reports Consolidated Operating Results For The Third Quarter And First Nine Months Of 2012

Stock quotes in this article: CHT

TAIPEI, Taiwan, Oct. 26, 2012 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its operating results for the third quarter and first nine months 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)

Third Quarter 2012 Financial Highlights

  • Total net revenue decreased by 2.3% to NT$54.40 billion
  • Mobile communications revenue increased by 4.7% to NT$24.88 billion
    • Mobile value-added services (VAS) revenue increased by 36.5% to NT$5.35 billion
    • Handset sales revenue increased by 14.0% to NT$6.39 billion
  • Internet revenue decreased by 6.1% to NT$6.05 billion
    • Internet VAS revenue increased by 5.4% to NT$0.65 billion
  • Domestic fixed communications revenue decreased by 7.7% to NT$18.94 billion
  • International fixed communications revenue increased by 2.2% to NT$3.86 billion
  • Total operating costs and expenses increased by 1.1% to NT$42.30 billion
  • Net income totaled NT$10.2 billion, representing a 14.6% decrease
  • Basic earnings per share (EPS) was NT$1.31

First Nine Month s of 2012 Financial Highlights

  • Total net revenue increased by 0.9% to NT$164.01 billion
  • Mobile communications revenue increased by 9.1% to NT$75.2 billion
    • Mobile VAS revenue increased by 33.2% to NT$14.94 billion
    • Handset sales revenue increased by 33.6% to NT$20.95 billion
  • Internet revenue decreased by 2.9% to NT$18.24 billion
    • Internet VAS revenue increased by 5.0% to NT$1.94 billion
  • Domestic fixed communications revenue decreased by 5.2% to NT$56.38 billion
  • International fixed communications revenue decreased by 0.5% to NT$11.37 billion
  • Total operating costs and expenses increased by 5.7% to NT$126.14 billion
  • Net income totaled NT$30.96 billion, representing a 16.5% decrease
  • Basic EPS was NT$3.99

"We are pleased with our third quarter financial results and we remain on track to meet our full year financial guidance," commented Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer of Chunghwa Telecom. "In order to meet customer demands in today's quickly evolving digital and mobile world, we continued to leverage our full suite of telecom services to further attract subscribers and steadily increase average revenue per user ("ARPU").  In fact, recent surveys indicated that our MOD offers the highest quality TV services in Taiwan, which is reflected in our revenue growth and increasing demand from advertisers. On the mobile front, we continued to maintain our leadership with the largest customer base and highest customer loyalty in Taiwan, delivering over 51.5% year-over-year growth in mobile internet services revenue."

Revenue

Chunghwa's total net revenue for the third quarter of 2012 decreased by 2.3% to NT$54.40 billion.  This total was comprised of 45.7% mobile, 11.1% internet, 34.8% domestic fixed, 7.1% international fixed, and the remainder was from other businesses.

While the mobile VAS and handset sales revenue from the Company's subsidiary Senao continued their strong growth momentum during the quarter, total net revenue decreased. This decrease was primarily attributable to several declining factors including; Mobile voice revenue attributable to Chunghwa's market competition and the National Communication Committee's ("NCC") tariff reduction, revenue recognized under domestic fixed and internet segments from the government integrated taxation information system project which is nearing completion, domestic service revenue due to mobile substitution, as well as Domestic Long Distance ("DLD"), broadband and ISP revenue due to tariff cuts.

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