CHT reports unaudited Q4 revenue growth of 2.5%; 2012 growth at 1.3%

The company cited strong momentum in its mobile operations as the primary driver of revenue growth.

Total revenue for its mobile business in the fourth quarter increased to NT$25.60 billion, representing year-on-year growth of 6.5 percent, which the company attributed to expansion in mobile value-added-service (VAS) revenue and handset sales from smartphone promotions.

In the fourth quarter last year, mobile communications revenue increased by 6.5 percent to NT$25.60 billion, while handset sale revenue increased by 15.1 percent to NT$7.29 billion.

However, the company pointed to the National Communications Commission's (NCC, 國家通訊傳播委員) regulatory mandate aiming to reduce tariff charges as having an adverse impact on its performance.

The company expects its total 2013 revenue to decrease by NT$2.46 billion — about 1.1 percent year on year — to NT$217.82 billion.

In effect since Jan. 1, the NCC set guidelines to lower cellular network access rates from the current charge of NT$2.15 a minute to NT$1.84 a minute next year, NT$1.57 a minute in 2014, NT$1.34 a minute in 2015 and NT$1.15 a minute in 2016.

Similarly, the price for ADSL Internet connection service and IP peering fees are projected to be reduced by 4.816 percent under the guidelines.

CHT is also poised to increase its capital expenditure to an unprecedented NT$37.15 billion, representing an increase of 11.7 percent from 2012, to be allocated for expansion in its cloud computing and information and communication technology businesses. The company however declined to give specifics on the revenue contribution of its ICT and cloud arms, only remarking that growth is on target with projections.

The company said that the capital expenditure amount does not include allocations for the construction of the fourth-generation or long term evolution (LTE) communication networks, set to be available by winter of 2015, and that its generous dividend policy will most likely remain unchanged.

Company leaders also declined to comment about the signing of a memorandum of understanding (MOU) with China Telecom (中國電信) to set up a cloud data processing facility in Pingtan, Fujian province, and the specifics of its subsidiary SENAO's (神腦) retail operations in China.

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