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Chunghwa Telecom profits on internet, tax cut

11 Jan 2011
00:00
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Taiwan’s largest operator, Chunghwa Telecom, reported a 1.6% increase in quarterly profit after a reduction in taxes and higher revenue from its internet services helped offset a decline in fees from its telephony services.

According to Bloomberg, Chunghwa had revealed in a statement that net income for Q4 last year rose to NT$10.8 billion ($369.1 million), up NT$200 million ($6.84 million) year-on-year.

Chunghwa’s sales rose 0.8% to NT$47.8 billion ($1.63 billion), exceeding the company’s forecast of NT$46.8 billion ($1.6 billion) in October last year.

The operator boosted its profits through the provision of internet television, high-speed fiber access and mobile value-added services to overcome a decline in revenue from fixed-line and mobile voice services.

Profits were further boosted by a cut in Taiwan’s corporate tax rate last year.

According to Chunghwa, sales for its fiber-optic data services rose 32% from last year while revenue from its mobile value-added services climbed 31%.

Further data showed that revenue from its local and international fixed-line services had declined over the same period.

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