Taiwan Mobile sees Q1 sales beating forecasts

Taipei, Mar 14: Taiwan Mobile Co. , the island's No. 3 telecoms carrier, said it expects first-quarter sales to reach T.4 billion (6 million), better than its previous forecast and in line with market estimates.

''We were more conservative before, and now the result is better than we had expected,'' Vice President Rosie Yu said at a company event in Taipei on Wednesday.

She did not reveal the company's previous estimate and no comparative figures were immediately available.

Analysts expect the company's first quarter sales to also reach T.4 billion, according to Reuters Estimates.

An estimated 86 percent of Taiwan's 23 million population already subscribe to mobile service, leading to stiff competition and low margins as carriers fight for customers.

Taiwan Mobile announced this month that it would buy up to 100 percent of Taiwan Fixed Network in a deal valued at up to T.57 billion (US.6 billion), which would be completed by April 17.

Chunghwa Telecom , Taiwan's largest telecommunications carrier, currently has 38 percent of the island's market share, followed by Far Eastone Communications Co. Ltd. with 31.5 percent and Taiwan Mobile with 30.5.

Far Eastone, a close competitor of Taiwan Mobile, had said on Tuesday that it was unlikely to use its spare cash for a share reduction this year, amid speculation it may use the money to buy out a fixed-line network firm operated by its parent company.

Taiwan Mobile shares had fallen 0.88 percent to T.75 by 0505 GMT on Wednesday, compared with a 1.56 percent fall on the benchmark TAIEX index <.twii>.

Reuters

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