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Taiwan's top 3 telecom carriers post strong profitability despite rate cuts.

Taipei, May 13, 2020 (CENS)--Beating fears that government-imposed new rate formula would erode earnings, Taiwan's top three telecom carriers posted even stronger-than-expected earnings throughout the first fourth months this year

The National Communications Commission (NCC) of the Executive Yuan, Taiwan's Cabinet, put the formula into effect in April, demanding all carriers to lower rates. Institutional investors feared that the new formula would hurt their earning performance. However, Chunghwa Telecom Co., Ltd. made NT$1.7 per share in after-tax net income, and Taiwan Mobile Corp. NT$1.6, both topping forecasts. Far EasTone Telecom Co., Ltd. earned NT$0.91, meeting expectations.

Industry watchers ascribed the impressive earnings mostly to persistent growth in non-voice value-added services at the three carriers and lowered operation tax rates.

In April alone, Chunghwa had sales of NT$15.6 billion (US$489 million at US$1:NT$32), up 3.9% year on year and 7% from a month earlier. The sales result attained 34.7% of the company's goal for the second quarter. In the meantime, its pre-tax earnings were NT$5.45 billion (US$170 million), reaching 38.6% of its goal for the second quarter, while after-tax net income was NT$4.4 billion (US$138 million), attaining 38.7% of its goal for the quarter.

Throughout the first four months this year, Taiwan's No.1 telecom carrier had revenue totaling NT$61.1 billion (US$1.9 billion), gaining 1.5% year on year, while its after-tax net income amounted to NT$16.4 billion (US$515 million), increasing 12.1% from the same period of last year.

Taiwan Mobile raked in consolidated sales of NT$5.7 billion (US$178 million) and after-tax net income of NT$1.1 billion (US$35 million) in April. The earnings result constitutes 37% of the company's goal for the second quarter.

In the first four months this year, the company scored total revenue of NT$22.8 billion (US$712 million) and after-tax net income of NT$4.77 billion (US$149 million).

Far EasTone recorded consolidated sales of NT$4.8 billion (US$151 million) and after-tax net income of NT$641 million (US$20 million). In the Jan.-Apr. period, the company had total sales of NT$19.5 billion (US$611 million) and after-tax net income of NT$2.9 billion (US$92 million).

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Title Annotation:Chunghwa Telecom Co., Ltd., Taiwan Mobile Corp., Far EasTone Telecom Co., Ltd.
Author:Liu, Ken
Publication:The Taiwan Economic News
Geographic Code:9TAIW
Date:May 13, 2010
Words:396
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