TAIPEI, Nov. 6, 2024
/PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT)
("Chunghwa" or "the Company") today reported its un-audited
operating results for the third quarter of 2024. All figures
were prepared in accordance with Taiwan-International Financial
Reporting Standards ("T-IFRSs") on a consolidated basis.
(Comparisons throughout the press release, unless otherwise
stated, are made with regard to the prior year
period.)
Third Quarter 2024 Financial Highlights
- Total revenue increased by 3.6% to NT$ 55.61 billion.
- Consumer Business Group revenue increased by 2.1% to NT$
34.43 billion.
- Enterprise Business Group revenue increased by 5.9% to NT$
17.60 billion.
- International Business Group revenue increased by 1.4%
to NT$ 2.37 billion.
- Total operating costs and expenses increased by 4.8%
to NT$ 44.23 billion.
- Operating income decreased by 0.8% to NT$ 11.38
billion.
- EBITDA decreased by 0.5% to NT$ 21.26 billion.
- Net income attributable to stockholders of the parent decreased
by 1% to NT$ 9.01 billion.
- Basic earnings per share (EPS) was NT$1.16.
- Operating income, net income attributable to stockholders of
the parent, and EPS all exceeded our proposed guidance.
"The Company delivered solid results in this quarter highlighted
by exceptional operational performance across all business
segments," stated Mr. Chih-Cheng
Chien, Chairman and CEO of Chunghwa Telecom. "We have set a
new record for total revenue for the same quarter over the past
seven years, reinforcing our leadership in Taiwan's mobile market with a revenue market
share of 40.3% and a subscriber share of 37.8%. Our blended 5G
penetration rate continued to expand to 33.5%, maintaining
leadership in Taiwan.
Additionally, thanks to our expansion on cross-tier upgrade
promotion package to include 1Gbps service offerings, our 1 Gbps
subscriber net-adds doubled during the quarter."
"Looking into the details of our three business groups, the
Consumer Business Group maintained its healthy growth trajectory,
driven by 5G migration and increasing postpaid subscribers, steady
fixed broadband revenue, and higher OTT revenue from our exclusive
broadcast of the Paris Olympic Games. We achieved double-digit
year-over-year growth in video-related revenue, driven by the
increasing subscriptions to our video platforms, which have
exceeded 3 million," said Mr. Rong-Shy Lin, President of Chunghwa
Telecom. "Our Enterprise Business Group performed as anticipated,
driven by a robust 22% year-over-year growth in our ICT business
revenue. Notably, revenue from 5G private networks and big data
analysis surged significantly, fueled by the 5G O-RAN project and
smart government initiatives. Furthermore, we are pleased with the
performance of our International Business Group, where income
before tax increased by 11% year-over-year, primarily driven by our
overseas ICT business. Excitingly, our European subsidiary in
Frankfurt commenced operations on
July 30, and we are well-prepared to
offer ICT solutions to high-tech European markets," added Mr.
Lin.
"In terms of development of advanced networks and technologies,
Chunghwa Telecom continues to lead the industry by initiating the
world's first IOWN APN between Taiwan and Japan with NTT Group during the quarter. We
are also the exclusive provider of OneWeb low-earth-orbit
satellite, with more than 90% coverage in Taiwan by the third quarter," Mr. Chien
continued. "On the ESG front, we have received SBTi's verification
for our Net-Zero greenhouse gas emissions target, making us the
first operator in Taiwan to commit
to achieving Net-Zero by 2045, ahead of the world roadmap of 2050.
Additionally, we have obtained carbon footprint verification for
all of our service centers nationwide, distinguishing us as the
only telecom company in Taiwan to
achieve this milestone. We remain dedicated to leading the way in
ESG best practices."
"Our solid performance across various sectors underscores our
commitment to providing high-quality, advanced, and convenient
telecom services. We remain confident that our new management team
will continue to drive our progress and create value for our
stakeholders," Mr. Chien added.
Revenue
Chunghwa Telecom's total revenues for the third quarter of 2024
increased by 3.6% to NT$ 55.61
billion.
Consumer Business Group's revenue for the third quarter of 2024
increased by 2.1% YoY to NT$ 34.43
billion. Mobile service revenue increased 3% YoY, mainly due
to 5G migration and increasing postpaid subscribers, the steady
growth of fixed broadband revenue, and the increase of OTT revenue
generated from our exclusive broadcast of the Paris Olympic Games.
Sales revenue increased 1.3% YoY mainly due to the launch of iPhone
16 series. CBG's income before tax decreased 0.6% YoY, mainly due
to the one-time broadcasting rights fee of the Paris Olympic
Games.
Enterprise Business Group's revenue for the third quarter of
2024 increased 5.9% YoY to NT$ 17.60
billion, mainly driven by our robust growth in ICT business,
which saw a 22% year-over-year increase in revenue, fueled by the
strong performance of our emerging services. The decline in mobile
and fixed voice services offset the growth of 5G migration and
speed upgrades, resulting in a slight year-over-year decrease in
EBG's mobile and fixed-line revenues in the third quarter, while
income before tax also experienced a year-over-year decrease.
International Business Group's revenue for the third quarter of
2024 increased by 1.4% to NT$ 2.37
billion, while its income before tax increased 11% YoY. The
positive growth was mainly due to the vibrant demand for ICT
business in the international market.
Operating Costs and Expenses
Total operating costs and expenses for the third quarter of 2024
increased by 4.8% to NT$ 44.23
billion, mainly due to higher manpower cost and the one-time
broadcasting rights fee of the Paris Olympic Games.
Operating Income and Net Income
Operating income for the third quarter of 2024 decreased by 0.8%
to NT$ 11.38 billion. The operating
margin was 20.5%, as compared to 21.4% in the same period of 2023.
Net income attributable to stockholders of the parent decreased by
1% to NT$ 9.01 billion. Basic
earnings per share was NT$1.16.
Cash Flow and EBITDA
Cash flow from operating activities, as of September 30th, 2024, decreased by
0.3% year over year to NT$ 49.76
billion, mainly due to a rise in settlement of tax payments,
which were deferred to Q4 last year.
Cash and cash equivalents, as of September 30th, 2024, decreased by
2.5% to NT$ 31.22 billion as compared
to that as of September
30th, 2023.
EBITDA for the third quarter of 2024 was NT$ 21.26 billion, decreasing by 0.5% year over
year. EBITDA margin was 38.23%, as compared to 39.84% in the same
period of 2023.
Business Highlights
Mobile
As of September 30th,
2024, Chunghwa Telecom had 13.01 million mobile subscribers,
representing a 0.6% year-over-year increase. In the third quarter,
total mobile service revenue increased by 2% to NT$ 16.75 billion, while mobile post-paid ARPU
excluding IoT SIMs maintained stable and flat year over year at
NT$ 552.
Fixed Broadband/HiNet
As of September 30th,
2024, the number of broadband subscribers slightly increased by
0.7% to 4.42 million. The number of HiNet broadband subscribers
increased by 1.3% to 3.73 million. In the third quarter, total
fixed broadband revenue grew 3.4% year over year to NT$ 11.32 billion, while ARPU increased 1.5% to
NT$ 786.
Fixed line
As of September 30th,
2024, the number of fixed-line subscribers was 8.95 million.
Financial Statements
Financial statements and additional operational data can be
found on the Company's website at
http://www.cht.com.tw/en/home/cht/investors/financials/quarterly-earnings
NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
Statements that are not historical facts, including statements
about Chunghwa's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. A number of important factors
could cause actual results to differ materially from those
contained in any forward-looking statement. Investors are cautioned
that actual events and results could differ materially from those
statements as a result of a number of factors including, but not
limited to the risks outlined in Chunghwa's filings with the U.S.
Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F,
in each case as amended. The forward-looking statements in this
press release reflect the current belief of Chunghwa as of the date
of this press release and Chunghwa undertakes no obligation to
update these forward-looking statements for events or circumstances
that occur subsequent to such date, except as required under
applicable law.
This press release is not an offer of securities for sale in
the United States. Securities may
not be offered or sold in the United
States absent registration or an exemption from
registration. Any public offering of securities to be made in
the United States will be made by
means of a prospectus that may be obtained from the issuer or
selling security holder and that will contain detailed information
about the company and management, as well as financial
statements.
NON-GAAP FINANCIAL MEASURES
To supplement the Company's consolidated financial statements
presented in accordance with International Financial Reporting
Standards pursuant to the requirements of the Financial
Supervisory Commission, or T-IFRSs, Chunghwa Telecom also
provides EBITDA, which is a "non-GAAP financial
measure". EBITDA is defined as consolidated net income (loss)
excluding (i) depreciation and amortization, (ii) total net
comprehensive financing cost (which is comprised of net interest
expense, exchange gain or loss, monetary position gain or loss and
other financing costs and derivative transactions), (iii) other
income, net, (iv) income tax, (v) (income) loss from
discontinued operations.
In managing the Company's business, Chunghwa
Telecom relies on EBITDA as a means of assessing
its operating performance because it excludes the effect of
(i) depreciation and amortization, which represents a non-cash
charge to earnings, (ii) certain financing costs, which are
significantly affected by external factors, including interest
rates, foreign currency exchange rates and inflation rates, which
have little or no bearing on our operating performance, (iii)
income tax (iv) other expenses or income not related to the
operation of the business.
CAUTIONS ON USE OF NON-GAAP FINANCIAL MEASURES
In addition to the consolidated financial results prepared under
T-IFRSs, Chunghwa Telecom also provide non-GAAP financial
measures, including "EBITDA". The Company believes that
the non-GAAP financial measures provide investors with another
method for assessing its operating results in a manner that is
focused on the performance of its ongoing operations.
Chunghwa Telecom's management believes investors will benefit
from greater transparency in referring to these non-GAAP financial
measures when assessing the Company's operating results, as well as
when forecasting and analyzing future periods. However, the
Company recognizes that:
- these non-GAAP financial measures are limited in their
usefulness and should be considered only as a supplement to the
Company's T-IFRSs financial measures;
- these non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, the Company's T-IFRSs
financial measures;
- these non-GAAP financial measures should not be considered to
be superior to the Company's T-IFRSs financial measures;
and
- these non-GAAP financial measures were not prepared in
accordance with T-IFRSs and investors should not assume
that the non-GAAP financial measures presented in this earnings
release were prepared under a comprehensive set of rules or
principle.
Further, these non-GAAP financial measures may be unique to
Chunghwa Telecom, as they may be different from non-GAAP financial
measures used by other companies. As such, this presentation of
non-GAAP financial measures may not enhance the comparability of
the Company's results to the results of other companies.
Readers are cautioned not to view non-GAAP results as a substitute
for results under T-IFRSs, or as being comparable to results
reported or forecasted by other companies.
About Chunghwa Telecom
Chunghwa Telecom (TAIEX 2412, NYSE: CHT) ("Chunghwa" or "the
Company") is Taiwan's largest
integrated telecommunications services company that provides
fixed-line, mobile, broadband, and internet services. The Company
also provides information and communication technology services to
corporate customers with its big data, information security, cloud
computing and IDC capabilities, and is expanding its business into
innovative technology services such as IoT, AI, etc. Chunghwa has
been actively and continuously implemented environmental, social
and governance (ESG) initiatives with the goal to achieve
sustainability and has won numerous international and domestic
awards and recognitions for its ESG commitments and best practices.
For more information, please visit our website at
www.cht.com.tw
Contact: Angela Tsai
Phone: +886 2 2344
5488
Email:
chtir@cht.com.tw
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SOURCE Chunghwa Telecom
