Chunghwa Tel's Feb net falls on currency related loss
TAIPEI, March 5 (Reuters) - Chunghwa Telecom (2412.TW), Taiwan's largest telecoms carrier, said on Wednesday its February sales rose 3.6 percent from a year ago, but its net income dropped 47.4 percent due to a large currency-related loss stemming from the Taiwan dollar's recent gains.
Chunghwa Telecom (CHT.N) shares fell more than 3 percent in early trade after the company said it notched a T$4 billion ($129 million) loss in February due to a 10-year foreign currency derivatives contract.
"The purpose of the contract is to hedge against capital expenditure payments and international call settlement fees dominated in U.S. dollars," the company said in a statement.
The firm added that it could see further losses of about T$1.5 billion for the remaining terms of the contract.
By 0314 GMT, its Taipei-listed shares fell 1.16 percent to T$76.40, against the benchmark TAIEX index's 0.5 percent gain.
Chunghwa Telecom has about a 38 percent share of the island's total telecom market, and it competes with smaller local rivals Far EasTone Telecommunications Co Ltd (4904.TW) and Taiwan Mobile Co (3045.TW). (US$1=T$30.7) (Reporting by Sheena Lee; editing by Ken Wills)
