Chunghwa Telecom profit falls 2.7% in 2014

Dylan Bushell-Embling
17 Feb 2015
00:00
News
Daily News

Taiwan's Chunghwa Telecom has reported declines in profit for both the fourth quarter and full year 2014, due to rising costs and declining fixed voice revenue.

Fourth quarter profit fell 12.6% year-on-year to TW$8.07 billion ($256.6 million), while for the full year profit declined 2.7% by TW$38.62 billion.

Revenue for the fourth quarter grew 1.4% to TW$59.63 billion, with mobile revenue up 2.2% to TW$28.9 billion, or 48.5% of total revenue.

Chunghwa's 4G subscriber base grew to 1.33 million, giving it a market share of 38.6%. The operator launched LTE-Advanced carrier aggregation technology in December, and has set a target of achieving 99% population coverage island-wide with its LTE network by the end of this year.

Internet revenue increased 2.8% to TW$6.69 billion, but domestic fixed revenue fell 1.6% to TW$19.6 billion and international fixed revenue shrank 4.9% to TW$3.5 billion.

For the full year, total revenue increased a more modest 0.6% to TW$226.61 billion, with mobile revenue up a mere 0.1% to TW$110.67 billion.

Internet revenue grew 2.2% to TW$26 billion, but domestic fixed line revenue fell 2% to TW$72.06 billion and international fixed revenue fell 2.8% to TW$15.31 billion.

Operating expenses increased 6.7% year-on-year in the fourth quarter to TW$50.89 billion, primarily due to a higher cost of handsets sold and increasing depreciation and ICT project costs. But capex during the quarter decreased by 11.4% to TW$11.59 billion.

Looking ahead to 2015, Chunghwa expects a 2% increase in revenue but a 2.9% decline in net profit to TW$37.5 billion.

Related content