Chunghwa Telecom forecasts slow growth

Chunghwa Telecom forecasts slow growth

Taiwan-based Chunghwa Telecom issued conservative earnings guidance for 2021, targeting a modest rise in revenue and offering a wide-ranging profit outlook, while accelerating 5G network construction.

The operator expects revenue to increase by between 0.8 per cent and 1 per cent to TWD209.3 billion ($7.5 billion) to TWD209.7 billion, while net profit range is tipped at between a 2.5 per cent decline or 2 per cent rise, TWD32.6 billion to TWD34.1 billion.

In a statement, chairman and CEO Sheih Chi-Mau explained it remains focused on 5G deployment and business transformation initiatives to “improve people’s lives, better manage across industries and enhance manufacturing efficiency”.

He said its aims to take advantage of holding the most spectrum capacity in Taiwan, deploy 5G enterprise private networks and develop applications with business partners.

Despite plans for higher spending on 5G and data centres, its material acquisition costs are forecast to drop 37.7 per cent to TWD44.3 billion from 2020, when it spent heavily acquiring 5G licences and concessions.

It is due to issue 2020 figures on 4 February, but unaudited numbers for the year show net profit up 1.9 per cent to TWD33.4 billion and revenue flat at TWD207.6 billion.


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