Chunghwa Telecom Reports Operating Results for the First Half and Second Quarter of 2005
31 8월 2005 - 7:00PM
PR Newswire (US)
TAIPEI, Taiwan, Aug. 31 /Xinhua-PRNewswire-FirstCall/ -- Chunghwa
Telecom Co., Ltd (TAIEX: 2412; NYSE: CHT) ('Chunghwa' or 'the
Company'), today reported revenues for the half year ending June 30
of NT$90.7 billion, net income of NT$24.9 billion and fully-diluted
earnings per common share (EPS) of NT$2.58, or US$ 0.81 per ADS.
The Company also reported earnings for the second quarter of 2005
with revenues of NT$46.2 billion, net income of NT$12.8 billion and
earnings per share (EPS) of NT$ 1.33, or US$ 0.42 per ADS. All
figures were prepared in accordance with US GAAP. Revenues and
Costs For the first half of 2005, total revenues decreased by 1.3%
year-over-year. Of the revenues from individual business segments,
36.8% was from fixed-line services, 39.3% was from wireless
services and 22.5% was from Internet and data services, with the
remainder from other business lines. Of the individual segments,
mobile revenues increased by 2.7% while Internet and Data increased
by 2.2%. Revenues from Local services decreased by 7.3%, due mainly
to the decrease in dial-up minutes and mobile substitution.
Revenues from DLD services decreased by 8.0% mainly due to mobile
substitution. ILD revenue decreased by 5.3% due to the decline in
average usage fee resulting from severe competition, however, the
increase of the wholesale revenue partially offset the decline of
the retail revenue. Overall, fixed line revenue decreased by 7.0%
year-over-year. For the first half 2005, operating costs and
expenses increased by 1.5% year-over-year. This was mainly due to
an increase in handset subsidies of NT$400 million and an increase
in marketing expenses for the mobile business of NT$254 million.
Pension expense also contributed NT$383 million to the increase,
owing to changes in actuarial assumptions. Total revenue for the
second quarter 2005 was NT$46.2bn, a 3.6% increase
quarter-over-quarter. Of this, 36.5% was from fixed-line services,
39.5% was from wireless services and 22.3% was from Internet and
data services, with the remainder from others. Total operating
costs and expenses for the second quarter of 2005 were NT$31.8bn, a
5.3% increase quarter-over-quarter. This was primarily due to
increase in maintenance expenses, increased marketing expenses for
the mobile business, and handset subsidies. Businesses Performance
Highlights Internet and Data Services -- Internet and data revenue
for first half 2005 increased by 2.2% year-over-year to
approximately NT$20.4bn. Internet and data revenue in the second
quarter of 2005 was NT$10.3bn, a 2.3 % increase
quarter-over-quarter. -- The total number of internet subscribers
was nearly 3.96mn as of Jun. 30, 2005, a 7.1% increase
year-over-year. In the second quarter of 2005, Chunghwa added
91,000 new subscribers. -- ADSL subscribers totaled 3.36mn as of
Jun. 30, 2005, a 23.3% increase year-over-year. ADSL subscriber
growth has continued and Chunghwa added 160,000 subscribers in the
second quarter of 2005. Mobile Service -- Mobile revenue for the
first half of 2005 increased by 2.7% year-over-year to NT$35.6bn.
For the second quarter of 2005, mobile revenue increased by 4.6%.
-- At the end of June 2005, mobile subscribers remained at 8.1mn.
The company has continued to clean up inactive prepaid subscribers
to increase the quality of total subscribers. -- Chunghwa continues
to be the leading mobile operator in Taiwan in terms of both
revenue and subscriber market share with 35.2% and 39.3%
respectively as of the end of June 2005. Fixed Line Services --
Total fixed line revenues for the first half of 2005 declined by
7.0% to NT$33.4bn, due mainly to fixed line competition, mobile
substitution and continuous migration of dial-up subscribers to
ADSL broadband services. Fixed-line revenue for the second quarter
of 2005 was NT$16.8bn, an increase of 1.7% quarter-over-quarter. --
Chunghwa's total fixed line subscriber base stood at approximately
13.3mn as of Jun. 30, 2005, an increase of 0.6% year-over-year. In
addition to the solid performance, Chunghwa Telecom became a
private company after the overwhelmingly successful ADR placement
and the concurrent domestic offering. Currently, MOTC is still the
major shareholder of the Company, owning 43.88% of the shares,
while QFII and employees own 37.95% and 5.15% of the shares,
respectively. The Company also announced that the payment date of
dividend reflecting the operating results of year 2004 for ADR
shareholders will be on September 12th. Financial Statements
Financial statements and additional operational data can be found
on our website at http://www.cht.com.tw/ir/filedownload . About
Chunghwa Telecom Chunghwa Telecom (TAIEX 2412; NYSE: CHT) is the
leading telecom service provider in Taiwan. Chunghwa Telecom
provides fixed line, mobile and Internet and data services to
residential and business customers in Taiwan. Note Concerning
Forward-looking Statements Except for statements in respect of
historical matters, the statements made in this press conference
contain 'forward-looking statements" within the meaning of Section
27A of the U.S. Securities Act of 1933 and Section 21E of the U.S.
Securities Exchange Act of 1934. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause the actual performance, financial condition or
results of operations of Chunghwa Telecom to be materially
different from what may be implied by such forward-looking
statements. Investors are cautioned that actual events and results
could differ materially from those statements as a result of a
number of factors including, among other things: extensive
regulation of telecom industry; the intensely competitive telecom
industry; our relationship with our labor union; general economic
and political conditions, including those related to the telecom
industry; possible disruptions in commercial activities caused by
natural and human induced events and disasters, including terrorist
activity, armed conflict and highly contagious diseases, such as
SARS; and those risks identified in the section entitled 'Risk
Factors' in Chunghwa Telecom's Form F-3 filed with the U.S.
Securities and Exchange Commission in connection with our U.S.
secondary offering. The financial statements included in this press
conference were unaudited, and prepared and published in accordance
with U.S. GAAP. Chunghwa Telecom also prepared certain financial
statements for the same periods discussed in this press conference
under ROC GAAP. Investors are cautioned that there are many
differences between ROC GAAP and U.S. GAAP. As a result, our
results under U.S. GAAP and ROC GAAP may in many events be
substantially different. The forward-looking statements in this
press conference reflect the current belief of Chunghwa Telecom as
of the date of this press conference and we undertake no obligation
to update these forward-looking statements for events or
circumstances that occur subsequent to such date. For inquiries:
Fufu Shen Investor Relations Tel: +886-2-2344-5488 Email:
DATASOURCE: Chunghwa Telecom Co., Ltd CONTACT: Fufu Shen of
Chunghwa Telecom, +886-2-2344-5488, or Web site:
http://www.cht.com.tw/ir/filedownload
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