Chunghwa Telecom EBITDA margin down due to price cuts and increase in smartphone subsidies

Editor Taiwan

Chunghwa Telecom Co reported an annual decline of 4.7% in net income in the first quarter. EBITDA margin shrank to 34.2 percent last quarter from 35.21 percent a year before due to price cuts and increase in handset subsidies of smartphones.

Chunghwa telecom has 10.35 million mobile subs. Revenue from mobile data services rose 42.2 percent y-o-y to NT 6.49 Billion due to a growth of 68 percent annual growth in mobile internet services.

Chunghwa Telecom ARPU (blended) rose 3 percent to approximately NT$ 602 last quarter from NT$ 584 a year ago. However ARPU from smartphone users actually fell to NT$ 1.163  from NT$ 1,185 a quarter ago, and NT$ 1200 a year ago.

Shih Mu-piao, Chunghwa’s president attributed the decline to its new policy of subsidising mid and low-end smartphones, which unfortunately carry a lower monthly fee.

EditorChunghwa Telecom EBITDA margin down due to price cuts and increase in smartphone subsidies