Taiwan's Chunghwa Telecom has reported that its first half revenues increased by 5.4% to NT$100.9 billion (US$3.2 billion), of which 28.5% was from fixed-line services, 35.9% was from mobile services, 24.6% was from Internet and data services, and the remaining 11.0% was from other revenues, including handset sales of Chunghwa and SENAO.
The group's net income totaled NT$23.2 billion (US$737 million), a decrease of 5.6%.
Mobile revenue decreased by 1.2% in the first half of 2008 to NT$36.3 billion (1.15 billion). This was mainly due to the decrease in traffic and the tariff cuts imposed by the telecoms regulator. Fixed-line revenues decreased by 3.1% to NT$28.7 billion (US$911 million) in the first half of this year. Local revenues decreased by 2.3% year-on-year due to broadband, mobile and VoIP substitution. Mobile and VoIP substitution was largely responsible for a 5.6% domestic long distance revenue decrease.
In addition, International long distance revenue declined 3.2% year-on-year primarily due to increased competition for calling card services posed by competitors' prepaid card service and the decrease in settlement income resulting from the appreciation of new Taiwan dollars.
Capital expenditures totaled NT$11.3 billon (US$359 million) for 1H 2008, of which 73.6% was for wire line equipment (including fixed-line and Internet and data), 12.7% was for wireless equipment, and the remainder was for other expenditures. Total capital expenditures increased due to a NT$1.2 billion (US$38 million) purchase of state-owned land in 1Q 2008, where one of Chunghwa's outlets is located.
As of June 30, 2008, Chunghwa had 8.8 million mobile subscribers, slightly up quarter-on-quarter by 0.63% compared to 8.7 million on March 31, 2008. According to statistics published by the NCC, at the end of June 2008, the Company's total subscriber market share (including 2G, 3G and PHS) was 35.6%, while its revenue share was 33.6%.
Chunghwa had 306,000 net additions to its 3G subscriber base during the second quarter, recording a 11.8% rise in the total number of 3G subscribers to 2.9 million on June 30, 2008.
Mobile VAS revenue for 1H 2008 was NT$3.4 billion (US$108 million), a 31.7% year-on-year increase, with SMS revenue up 24.9% and mobile Internet revenue up 58.2%.