Chunghwa Telecom’s June Earnings Slip Over 40% YoY

Taipei, July 11, 2012 (CENS)--Chunghwa Telecom Co., Ltd. scored net earnings of NT$2.4 billion (US$85 million at US$1:NT$29) in June , a decrease of 44% from the same month of last year, and NT$0.32 per share, a 42.9% slip from the same month of last year.

In the meantime, Taiwan’s No.1 telecom carrier saw its non-consolidated revenue decline 4.1% from the same month of last year, to NT$15.6 billion (US$540 million) in June.

Chunghwa Telecom ascribed the earnings reduction mostly to inclusion of the NT$1.26 billion (US$43 million) in value reduction of its 409 hectares of land in its financial balance. Also, rate cuts of many of its services last year contributed to the recession.

With net earnings of NT$19.3 billion (US$665 million), or NT$2.49 per share for the first half of this year, the company also lost the title as No.1 profit earner in Taiwan’s telecom-service industry to Taiwan Mobile Corp., whose EPS was NT$2.7. Chunghwa Telecom’s Jan.-June EPS also lagged behind projected NT$2.53.

In the first six months this year, Chunghwa Telecom reported revenue of NT$94.3 billion (US$3.2 billion), attaining half of its goal for this year. The revenue was partly made up of sales from its high-speed Internet connection service based on optical-fiber network, sales from value-added mobile services, and multimedia on demand (MOD) TV services.

Taiwan Mobile raked in net income of NT$1.2 billion (US$43 million), or NT$0.47 per share, on consolidated revenue of NT$8 billion (US$276 million) in June. Throughout the first six months this year, the company had after-tax net income of NT$7.2 billion (US$250 million) on consolidated revenue of NT$47.7 billion (US$1.6 billion).

In June, Far EasTone Telecom Co., Ltd. earned NT$990 million (US$34 million), or NT$0.3 per share, in net income on consolidated revenue of NT$7.2 billion (US$251 million). In the Jan.-June period, the company scored after-tax net income of NT$5.1 billion (US$176 million), or NT$1.57 per share, on consolidated revenue of NT$42.6 billion (US$1.4 billion).