Business Week | January 10, 2011 | Tim Culpan
Jan. 10 (Bloomberg) — Chunghwa Telecom Co., Taiwan’s largest phone operator, posted a 1.6 percent increase in quarterly profit after a reduction in corporate taxes and higher Internet revenue offset a decline in telephony fees.
Fourth-quarter net income climbed to NT$10.8 billion from NT$10.6 billion a year earlier, the Taipei-based company said in a statement today. That compared with the NT$10.7 billion average of five analyst estimates compiled by Bloomberg. In October, Chunghwa forecast profit of NT$10.7 billion.
Chunghwa is turning to Internet television, high-speed optical fiber data, and mobile value-added services to offset slowing monthly fixed-line and cell phone tariffs. Profit was boosted by a cut in the corporate tax rate during the year.
Sales rose 0.8 percent to NT$47.8 billion, beating the company’s October forecast of NT$46.8 billion. Pre-tax profit was NT$12.6 billion, missing its projection for NT$12.7 billion.
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