Taiwan Mobile Gains from Solid E-Commerce Business
Background
Taiwan Mobile Company Limited was founded in 1997 and is the second-largest telecom service provider in Taiwan.
The company provides standard mobile prepaid and postpaid services as well as cable TV, fixed line and broadband internet for consumers and enterprises.
Business Description
Taiwan Mobile is the second-largest mobile operator with about 30% market share within a five-player market. Its internet-providing services are also within the top three largest in Taiwan.
Its core business, telecom services, which generated 66% of revenue in 2017 comprises consumer and enterprise solutions that include both prepaid and postpaid services with voice, data, fixed-line broadband services, mobile to international direct dialing and cloud services.
Retail business conducted through 44%-owned momo.com, Inc. (8454 TT) falls into online shopping, TV home shopping, and mail order. momo.com is one of the top two e-commerce websites selling a wide range of products, such as electronics including mobile phones but also cosmetics, food and house appliances and travel services.
Household services include pay TV services in the form of digital and high definition TV channels. It also offers SuperMOD which is an on-demand video, music and content platform.
Leadership
Daniel M. Tsai has served as the Chairman of Taiwan Mobile since 2003. Furthermore, he holds the position of Vice Chairman at Fubon Financial Holding Company Limited (2881 TT). He graduated with a Bachelor of Laws from National Taiwan University and a Master of Laws from Georgetown University, US.
James Jeng was appointed President of Taiwan Mobile in 2014. He holds a Bachelor of Science degree majoring in Electrical Engineering from National Cheng Kung University, Taiwan, a Master of Science degree and Doctor of Philosophy from the State University of New York, US.
World Class Benchmarking
Profitable Growth has ranked in the top 20% since 2016, and in the past 12 months, Taiwan Mobile ranked in the top 26 out of 130 large Telecom companies worldwide.
Profitability has consistently stayed at #2 for the whole time period. Growth has moved around the average level since 2014.
Since 2016, Asset utilization has ranked persistently in the top 20%. Profit margin has been above the average since 2014 and in the top 30% since 2016.
In the past 12 months, Sales growth improved one step in rank to #5 while Margin change fell one step to #7.
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