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.”
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. | ||||
