Chunghwa Telecom to increase Capex for 2013 to $1.25 billion

Telecom Lead Asia: Chunghwa Telecom is set to increase telecom Capex (capital expenditure) for 2013 by NT$3.89 billion to NT$37.15 billion ($1.25 billion).

Chunghwa Telecom will invest in the fiber broadband, mobile network, and cloud infrastructure build-outs.

Shyue-Ching Lu, chairman and chief executive officer, Chunghwa Telecom, said: “We will continue the build-out and expansion of high-speed fiber and mobile broadband networks throughout Taiwan in order to mitigate the regulation impact and stay ahead of the competition.”

Shyue-Ching Lu, chairman and chief executive officer, Chunghwa Telecom

Its strategic focus will enable the telecom operator to leverage key future growth drivers including mobile data, multimedia-on-demand, information and communication technologies services and cloud services to expand customer base for major businesses.

For 2013, total revenue is expected to decrease by NT$2.46 billion, or 1.1 percent, to NT$217.82 billion compared to the unaudited consolidated revenue for 2012.

The less construction revenue from Light Era, the property development subsidiary, a continued decline in voice revenue, the NCC-mandated tariff reductions as well as the mobile interconnection rate reduction will decrease total revenue.

Operating costs and expenses for 2013 are expected to increase by NT$1.49 billion to NT$172.71billion. The promotion and deployment of the Company’s mobile internet and broadband and cloud businesses is expected to result in higher depreciation and amortization as well as higher maintenance and material expenses.

Income before income taxes is expected to be NT$46.15 billion and comprehensive income attributable to owners of the parent NT$37.59 billion, representing decreases of NT$ 2.9 billion and NT$2.48 billion respectively.

 

(NT$ billion except EPS) 2013(F)

(T-IFRSs)

2012

(ROC GAAP

unaudited)

change YoY

( percent)

Revenue 217.82 220.28 (2.46) (1.1)
Operating Costs and Expenses 172.71 171.22 1.49 0.9
Income from Operations 45.11 49.06 (3.95) (8.1)
Non-operating Income 1.04 (0.01) 1.05
Income before Income Tax 46.15 49.05 (2.90) (5.9)
Comprehensive Income attributable to owners of the parent (Note) 37.59 40.07 (2.48) (6.2)
EPS(NT$) 4.85 5.16 (0.31) (6.1)
EBITDA 78.22 81.54 (3.32) (4.1)
EBITDA Margin 35.9 percent 37.0 percent
Acquisition of Property, Plant and Equipment, Long-term Investments 37.15 33.26 3.89 11.7
Note: The figure of 2012 was Net Income attributable to owners of the parent based on ROC GAAP.

 

editor@telecomlead.com

Latest

More like this
Related

5G RedCap for IoT gains momentum, but where is commercial deployment?

The deployment of 5G RedCap (Reduced Capability) technology, designed...

Telia appoints Alexandra Furst as Chief Technology and Information Officer

Telia Company has announced the appointment of Alexandra Furst...

Telecom Capex dips 10% as investments in 5G and fixed broadband slow

Telecom capital expenditures (Capex) dropped by 10 percent in...

COAI rejects TRAI on telecom framework due to impact on revenue

The Cellular Operators Association of India (COAI) has voiced...