TAIPEI, Taiwan, Oct. 30, 2009 (PRNewswire-Asia-FirstCall) -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company"), today reported its operating results for the first nine months and third quarter of 2009. All figures were presented on a consolidated basis and prepared in accordance with generally accepted accounting principles in the Republic of China ("ROC GAAP").

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

Financial Highlights for the First Nine Months of 2009:
-- Total consolidated revenue decreased by 3.0% to NT$147.2 billion
-- Mobile communications business revenue decreased by 3.9% to NT$64.6
billion; mobile value-added services (VAS) revenue increased by 18.8%
to NT$6.2 billion
-- Internet business revenue increased by 0.4% to NT$17.2 billion;
internet value-added services (VAS) revenue increased by 17.5% to
NT$1.5 billion
-- Domestic fixed communications business revenue decreased by 2.8% to
NT$52.9 billion
-- International fixed communications business revenue decreased by 3.8%
to NT$11.5 billion
-- Total operating costs and expenses decreased by 0.9% to NT$104.0
billion
-- Net income totaled NT$33.2 billion, representing a decrease of 9.2%
-- Basic earnings per share (EPS) decreased by 9.3% to NT$3.42

Financial Highlights for the Third Quarter of 2009:
-- Total consolidated revenue decreased by 1.7% to NT$50.1 billion
-- Mobile communications business revenue decreased by 2.5% to NT$22.1
billion
-- Internet business revenue decreased by 0.1% to NT$5.8 billion
-- Domestic fixed communications business revenue decreased by 2.6% to
NT$17.7 billion
-- International fixed communications business revenue increased by 4.0%
to NT$4.1 billion
-- Total operating costs and expenses decreased by 1.3% to NT$35.9 billion
-- Net income totaled NT$10.9 billion, representing a decrease of 17.9%
-- Basic earnings per share (EPS) decreased by 17.9% to NT$1.13

Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer of Chunghwa Telecom said, "In 2009, and particularly in the third quarter of 2009, we have maintained or increased the subscriber figures in each of our core businesses, including the highly competitive broadband and mobile businesses, despite the challenges presented by the economic environment and market competition. As a result, we have sustained our overall market leadership position in each of our core service areas, and continue to enhance our value-added services, MOD/IPTV offering and key enterprise solutions. Moving forward, we plan to accelerate our fiber deployment and further enrich our MOD/IPTV content in order to continue our growth momentum.

"Beginning in the third quarter of 2009, we are presenting our financial reporting in five operating segments rather than the previous seven segments. We have carefully considered this redefinition and believe that this revised financial reporting framework will better facilitate our ability to assess the performance of each operating segment. This change brings our reporting more in line with global industry standards, and we believe that it will better align our internal reporting metrics and enhance the transparency of our communications."

Revenue

Chunghwa's total consolidated revenue for the first nine months of 2009 decreased by 3.0% year-over-year to NT$147.2 billion, of which 43.9% was from the mobile business, 11.7% was from the internet business, 36.0% was from the domestic fixed business, 7.8% was from the international fixed business and the remainder was from the non-telecom business. The primary reasons for the revenue decline were the economic downturn and market competition, which resulted in reduced traffic in the domestic and the international fixed line business.

For the mobile business, total revenue for the first nine months of 2009 amounted to NT$64.6 billion, representing a decline of 3.9% year-over-year. This decline was mainly due to a decrease in handset and data card sales from Senao. However, Chunghwa made progress by increasing its mobile subscriber numbers by 3.5% and enhancing its value-added-service ("VAS") revenue by 18.8% compared to the same period in 2008.

Chunghwa's internet business revenue increased slightly by 0.4% year-over- year to NT$17.2 billion in the first nine months of 2009. The impact of successful promotion of VAS, such as on-line music and games and internet pornography gatekeeper, was offset by the HiNet tariff reduction implementation, which began in November 2008.

For the first nine months of 2009, domestic fixed revenue totaled NT$52.9 billion, representing a decrease of 2.8% year-over-year. Local and domestic long distance revenues decreased by 5.5% and 9.3%, respectively, year-over- year.