Taiwan’s largest telecommunications company, Chunghwa Telecom released its Q2 earnings, revealing a slight fall in profit and revenue due to mobile voice revenue drop.
The company reported a revenue of TWD56.20 billion, marking a decline of 1.3%. The mobile service revenue dropped 7.1% to TWD26.48 billion. As a result, the net income declined 0.7% to TWD11.06 billion ($342 million). The EBITDA decreased 2.8% to TWD21 billion.
According to Chunghwa Telecom, the revenue drop is mainly due to decline in the sales of equipment, which fell 19.8% in the quarter, and also due to the fall in mobile voice revenue that reduced nearly 10% in the quarter. The mobile voice revenue was deeply influenced by the VoIP substitution and the market competition. Overall, Chunghwa Telecom has a market share of 32%.
Interestingly, the internet revenue has increased by 5.5% TWD6.83 billion. This is mainly due to increased data consumption and application value-added services. The operating expenses dropped 0.9% to TWD43.3 billion due to lower costs of goods sold and depreciation costs.
In terms of subscribers, Chunghwa Telecom has marked an increase, especially the 4G subscriber base. Its 4G subscriber base has increased 53%. Overall mobile subscriber base surged by 2.5% to 10.9 million. The company’s mobile internet subscribers also have grown 16% when compared to the same period last year.
“Our continued focus on streamlining our expansion efforts, operations, and expense controls enabled us to outperform our guidance for operating income, net income, and EPS during the second quarter of 2016,” commented Rick Tsai, chairman and CEO of Chunghwa Telecom.