Chunghwa Telecom releases un-audited operating results for its second quarter.
Providing fixed-line, mobile, broadband, and internet services, Taiwanese company Chunghwa Telecom has recently released its un-audited operating results for its second quarter, which has been viewed as mixed reading.
With a total decrease in revenue by 0.9 to NT$55.67 billion, the company has faced a number of challenges in the recent year. Chunghwa Telecom has recently settled its dispute with Taiwan Interactive, U-Light Entertainment Technology Co Ltd and Chunghwa Digico Media Co Ltd, which has enabled the company to bringing back over 40 channels which were removed from its platform.
Over 100 million subscribers were affected, and had previously protested the decision to remove the channels. However, the company has retained its position within the fixed line market, with over 10 million subscribers. Chunghwa Telecom has also seen an increase in mobile revenue by 1.2% to NT$26.79 billion, and internet revenue has increased by 4.4% to NT$7.08 billion.
Mr. Yu Cheng, Chairman and CEO of Chunghwa Telecom, stated, "The second quarter of 2017 was another quarter of stable financial and operating performance, during which we experienced in-line revenue and better-than-expected profits. In our mobile business, we maintained our leadership position with 37.3% market share in mobile subscribers and 37.2% market share in mobile revenue, as well as the lowest churn rate in the market.
We effectively executed our strategy to enhance subsidy efficiency by re-allocating resources to guide mobile subscription toward high-end plans with the goal of increasing the number of new, high-end customers and ARPU. In our broadband segment, we were encouraged to experience a small quarter-over-quarter increase in the number of broadband subscribers.
We remain focused on strengthening our high-speed service adoption and have bundled the high-quality IPTV service that will carry OTT service in the near future to drive subscriber growth.
Additionally, we continued to showcase applications developed on our IoT platform in smart cities projects in Taiwan. Going forward, we remain committed to building upon our competitive advantages, offering reliable, customized and comprehensive ICT solutions to our enterprise customers and establishing a comprehensive ecosystem in this sector."
Consequently, Chunghwa Telecom has announced that it plans to construct a NarrowBand IoT (NB-IoT) system through a partnership with Ericsson, which will enable it to pilot a range of new IoT devices in the region. Chen Shyang-Yih, Executive Vice President of Chunghwa Telecom and President of Telecommunication Laboratories, said: “Ericsson has long been our leading network provider and has demonstrated the strong device life-cycle management and integration capabilities that are required for a system of this type. NB-IoT technology is one of our primary focuses in 2017, and we are keen to explore more opportunities based on the new technology.”
Mr. Cheng continued, "We remain confident in our ability to solidify our market leadership position and create incremental shareholder value. Looking ahead, we will continue to leverage our expertise in cutting-edge communications technology, our deep marketing resources, as well as our effective operational strategies and strong execution capabilities to strengthen our user acquisition, diversify our product offerings and develop new initiatives in our innovative business lines."