Chunghwa Telecom Co. Ltd.
) declared mixed financial results for the third quarter of 2013.
Quarterly total revenue was approximately $1,906 million,
recording a 2.6% year-over-year rise. The third-quarter 2013 net
income was around $357.8 million, down 0.5% year over year.
Net earnings per ADR were 42 cents, down 6.7% year over
Quarterly operating income was $423 million, down 0.4% year
over year. Quarterly operating costs were $1,482.4 million, up
3.5% year over year. Operating margin was 22.2% compared with
22.9% in the year-ago quarter.
The third-quarter 2013 EBITDA was $694 million, down 0.4% year
over year. Quarterly EBITDA margin came in at 36.4% against 37.5%
in the prior-year quarter. During the reported quarter, Chunghwa
generated around $557.6 million of cash from operations, up 13.4%
year over year. Capital expenditure during the reported quarter
was around $259.4 million, down 7.3% year over year.
Segment wise Revenue
The Mobile Communications segment accounted for approximately
$925 million of the total third-quarter 2013 revenue, up 10.6%
year over year. The Internet segment accounted for $226 million,
up 11.2% year over year. The Domestic Fixed-line Communications
segment recorded $604 million in revenues, down 5.7% year over
year. The International Fixed-line Communications segment
generated $133.4 million, up 2.8% year over year. Other Business
segment generated the remaining $17.5 million, down 22% year over
In the third quarter of 2013, Broadband access (including ADSL
and FTTx) revenues were around $160.3 million, down 0.8% year
over year. Mobile VAS revenues were nearly $247.6 million, up
37.4% from the year-ago quarter. Handset sales revenues were
$260.1 million, up 24.8% year over year.
Subscriber Statistics as of Sep 30, 2013
The total Broadband subscriber base was nearly 4.553 million,
out of which the FTTx subscriber base was around 2.90 million,
accounting for 63.7% of the total broadband subscriber base. 1.09
million Broadband subscribers signed up for 60 Mbps or higher
speed connections, up 32.7% year over year. HiNet
subscriber base was 3.78 million, up 0.4% year over year.
Mobile subscriber base stood at 10.55 million, up 3.4% year
over year. Mobile Internet subscriber base was 3.57 million, up
by a significant 60.7% year over year. Chunghwa currently
commands 34.1% of the mobile Internet market share in Taiwan. In
the reported quarter, the company added a net of 1.35 million
mobile Internet subscribers. The International /Domestic
Fixed-line subscriber base stood at 11.62 million.
Currently, Chunghwa holds a Zacks Rank #2 (Buy). The company
faces stiff competition from Taiwan Mobile Company and Far
EasTone Telecommunications Co. Ltd. Chunghwa entered into
China Telecom Corp. Ltd.
China Unicom Ltd.
) to access software from their application stores for providing
premium services to its subscribers.
Further, CHT Global, the U.S. subsidiary of Chunghwa, has
entered into an agreement with the third-largest U.S. telecom
). Per the deal, CHT Global will become a mobile virtual network
operator of Sprint. The company will provide wireless data
services to several enterprises and traveling business
professionals using Sprint's 3G and 4G LTE network.
CHINA TELCM-ADR (CHA): Free Stock Analysis
CHUNGHWA TELECM (CHT): Free Stock Analysis
CHINA UNICOM (CHU): Free Stock Analysis
SPRINT CORP (S): Free Stock Analysis Report
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