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Taiwan Mobile Retains Crown as Taiwan's Most Profitable Telecom Provider

2014/12/26 | By Ken Liu

Taiwan Mobile Corp. made NT$5.18 per share in after-tax net income in the Jan.-Nov. period, again topping all of its industry peers in Taiwan.

In the same period, Chunghwa Telecom Co., Ltd., Taiwan's No.1 telecom service provider by revenue, cleared NT$4.68 per share, outstripping the NT$4.62 it planned for the whole year. Far EasTone Telecom Co., Ltd. earned NT$3.32, attaining 99% of its annual goal.

In November alone, both Chunghwa and Taiwan Mobile netted NT$0.36 per share while Far EasTone made NT$0.21.

Chunghwa Telecom had consolidated revenue of NT$19.55 billion (US$651.66 million at US$1:NT$30) in November alone, rising 1.9% from the same month of 2013. In the meantime, its pre-tax earnings on a consolidated basis ended the period at NT$3.4 billion (US$113.33 million), down 22% year on year (YoY). Of the earnings, NT$2.83 billion (US$94.33 million) was contributed by Chunghwa Telecom itself, contracting 20.9% YoY.

The November result helped boost the company's revenue for the first 11 months to NT$205.56 billion (US$6.85 billion), a sum equal to 90.1% of the company's goal for 2014.

Chunghwa executives said the company had signed up 3.11 million customers for its fiber optic broadband service, including the 1.3 million subscribers with connection speeds topping 60 megabits per second. The company also increased the number of its mobile customers past the targeted five million to 5.08 million.

Taiwan Mobile's internal calculation showed that its consolidated revenue for November alone was 10.18 billion (US$339.3 million), floating its consolidated revenue for the first 11 months to NT$102.63 billion (US$3.42 billion).

Taiwan Mobile spokesperson Rosie Yu attributed the impressive November result mostly to a 10% YoY increase in telecom service revenue and revenue from its momo TV shopping channel.

Far EasTone had consolidated revenue of NT$8.43 billion (US$281.03 million) in November alone, swelling its consolidated revenue for the first 11 months of the year to NT$85.23 billion (US$2.84 billion).

Taiwan's telecom service providers, including Chunghwa, Taiwan Mobile, and Far EasTone, are competing to roll out fourth-generation mobile connection service aiming to realize the government's hope to have over 10 million 4G subscribers on the island by May 2016. Industry executives estimate that Taiwan will have 3.3 million 4G subscribers by the end of 2014 and add five million more subscribers to the new-generation service next year. (KL)

Taiwan's top three telecom carriers and their Jan.-Nov. '14 net income

Stock Code

Company

EPS for Nov.

EPS for Jan.-Nov. period

Est. EPS for whole year

2412

Chunghwa

NT$0.36

NT$4.68

NT$4.62

3045

Taiwan Mobile

NT$0.36

NT$5.18

NT$5.51

4904

Far EasTone

NT$0.21

NT$3.32

NT$3.35

Source: The companies