TAIPEI, Taiwan, Oct. 30 /Xinhua-PRNewswire-FirstCall/ -- Chunghwa Telecom Co., Ltd (TAIEX: 2412; NYSE: CHT) ('Chunghwa' or 'the Company'), today reported its operating results for the first nine months and the third quarter of 2008. All figures were consolidated and prepared in accordance to ROC GAAP.

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As to the global economic downturn, Dr. Shyue-ching Lu, Chairman and CEO of Chunghwa Telecom, made the following comment: 'The current financial crisis has impacted the global economy, especially in the US. Based on our current outlook, given that telecommunication is a utility-like service and our dominant leadership in Taiwan, the impact on us will be relatively small. As a result, currently, we are still confident that we should be able to achieve our annual guidance which we set out earlier in 2008.'

Below please find the highlights and detail explanation for Chunghwa's operational results:

(Comparisons, unless otherwise stated, are with respect to the prior year period)

    Financial Highlights for the First Nine Months of 2008:
    -- Total revenue increased by 3.0% to NT$151.9 billion
    -- Internet and data revenue grew 1.3%
    -- Mobile revenue declined 2.0%; Mobile VAS revenue increased by 26.8%
    -- Net income totaled NT$36.5 billion, a decrease of 3.3%
    -- Basic earnings per share (EPS) increased by 7.6% to NT$3.82, or
       NT$38.2 per ADS
    Financial Highlights for the Third Quarter of 2008:
    -- Total revenue decreased by 1.5% to NT$50.9 billion
    -- Internet and data revenue grew 0.4%
    -- Mobile revenue declined 3.4%; Mobile VAS revenue increased by 18.3%
    -- Net income totaled NT$13.3 billion, an increase of 0.8%
    -- Earnings per share (EPS) increased by 12.1% to NT$1.39, or NT$13.9
       per ADS

Revenues

Chunghwa's total revenue for the first nine months of 2008 increased by 3.0% year-over-year to NT$151.9 billion, of which 28.4% was from fixed-line services, 35.9% was from mobile services, 24.5% was from Internet and data services and the remainder 11.2% was from other revenues, including handset sales from SENAO and Chunghwa. Chunghwa's revenue growth for the first nine- month period was led by continued Internet & data growth and the consolidation of revenues from the Company's subsidiaries.

Internet and data revenue of NT$37.3 billion in the first nine months of 2008 was 1.3% higher than the comparable period in 2007. This was driven by the continued growth in the total broadband subscriber base, FTTB and ADSL speed upgrades, and partly offset by an ADSL tariff adjustment that took effect on April 1, 2008.

Mobile revenue decreased by 2.0% in the first nine months of 2008 to NT$54.6 billion. This was primarily due to the positive effects of the 2.5% increase in subscriber numbers and the 26.8% increase in value added service revenue year-over-year, but was offset by the traffic decline and the price cuts by the National Communication Commission ('NCC').

Total fixed-line revenue declined 3.7% to NT$43.1 billion as compared to the prior year period. International Long Distance revenue decreased 4.2%, mainly due to increased competition from calling card and the decrease in settlement income resulting from the fluctuation of FX rate. Local and domestic long distance revenues decreased by 2.9% and 6.5% year-over-year, respectively, for the first nine months of 2008, mainly due to mobile and VOIP substitution.

For the third quarter 2008, Internet revenue was 0.3% lower while data revenue increased by 2.5% year-over-year. Mobile revenue decreased by 3.4%, mainly due to the price cuts imposed by the NCC and promotional packages provided by Chunghwa. Fixed line revenue as a whole decreased by 5.1% as compared to the same period last year.

Costs and Expenses

For the first nine months of 2008, total operating costs and expenses increased 5.3% year-over-year to NT$104.9 billion. The increase was mainly attributable to the consolidation of our subsidiaries, especially Senao. For the parent company, total operating costs and expenses increased by NT$1.5 bn, representing a year-over-year increase of 1.6%.