Chunghwa Telecom issues financial forecast for 2013

Taiwanese multi-service operator Chunghwa Telecom (CHT) has issued its financial guidance for the coming year, confirming that it expects revenues to decline by around 1.1% in 2013. Pointing to an expected continuation of declines in voice revenue, alongside enforced tariff and mobile interconnection rate reductions, the telco has said it anticipates turnover of TWD217.82 billion (USD7.36 billion) in 2013. Operating costs and expenses in this financial year are forecast to increase by TWD1.49 billion to reach TWD172.21 billion; the operator noted that ‘the promotion and deployment of [its] mobile internet and broadband and cloud businesses is expected to result in higher depreciation and amortization as well as higher maintenance and material expenses’. Capex for 2013 meanwhile has been budgeted at TWD37.15 billion, with investment primarily going towards the rollout of CHT’s fibre and mobile networks, as well as towards the build out of cloud infrastructure. Rounding out is guidance, CHT has said that it expects income before income taxes of TWD46.15 billion in FY13, while comprehensive income attributable to owners of the parent will stand at TWD37.59 billion, representing decreases of TWD2.9 billion and TWD2.48 billion respectively.