Chunghwa Telecom Q2 Capex ups 6.8 percent to NT$8.05 billion

Chunghwa Telecom Capex (capital expenditure) in the second quarter of 2013 increased 6.8 percent to NT$8.05 billion.

The Taiwanese telecoms spent 49.7 percent of Capex on domestic fixed communications, 36.0 percent on mobile, 6.3 percent on internet, 6.5 percent international fixed communications, and the remainder on for other uses.

Meanwhile, Chunghwa Telecom revenue increased 2.6 percent to NT$55.84 billion.

Net income decreased 7 percent to NT$10.64 billion.

Mobile communications revenue increased 8.6 percent to NT$26.87 billion.


Its mobile value-added services (VAS) revenue increased 35.1 percent to NT$6.82 billion.

Handset sales revenue increased 16.1 percent to NT$7.57 billion.

Internet revenue increased 3.2 percent to NT$6.19 billion.

Domestic fixed communications revenue decreased 2.3 percent to NT$18.18 billion.

International fixed communications revenue increased 4.1 percent to NT$4.03 billion.

Its strategy is reflecting in revenue and mobile data growth. “Through aggressive promotion of our data plans and strategic targeting of the fast-growing, low-to-mid tier smartphone market, we were able to rapidly attract new customers,” said Yen-Sung Lee, chairman and CEO of Chunghwa Telecom.

Chunghwa Telecom’s mobile internet subscriber market share expanded to 33.5 percent to over 3.17 million subscribers in June.

Chunghwa’s internet business revenue increased by 3.2 percent to NT$6.19 billion in the second quarter of 2013.  The increase was primarily attributable to the growth in HiNet ISP revenue due to customers’ upgrade to higher speed fiber services.

For the second quarter of 2013, domestic fixed revenue totaled NT$18.18 billion, representing a 2.3 percent decrease. Local and DLD service revenue decreased by 8.0 percent and 4.1 percent respectively mainly due to mobile and VoIP substitution.

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