TAIPEI, May 2, 2024
/PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT)
("Chunghwa" or "the Company") today reported its un-audited
operating results for the first 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.)
First Quarter 2024 Financial Highlights
- Total revenue increased by
1.4% to NT$ 54.94 billion.
- Consumer Business Group
revenue increased by 1.7% to NT$ 34.62
billion.
- Enterprise Business Group
revenue decreased by 0.9% to NT$ 16.95
billion; increased by 1.9% when excluding one-time item.
- International Business
Group revenue increased by 13.3% to NT$ 2.41
billion.
- Total operating costs and
expenses increased by 2.4% to NT$ 43.03
billion.
- Operating income decreased
by 2.2% to NT$ 11.91 billion.
- EBITDA decreased by 1.1%
to NT$ 21.82 billion.
- Net income attributable to
stockholders of the parent decreased by 2.6% to NT$ 9.39 billion.
- Basic earnings per share
(EPS) was NT$1.21.
- Operating income, EBITDA
and net income attributable to stockholders of the parent all
exceeded our proposed guidance.
"Chunghwa Telecom has embarked on 2024 with a strong start. Our
robust first quarter results have once again showcased the efficacy
of our strategic execution and the excellence of our dedicated
team," stated Mr. Shui-Yi Kuo,
Chairman and CEO of Chunghwa Telecom. "For the first quarter of
2024, our revenue hit a record high for the same period since 2017,
while income before tax reached the highest point for the same
period since 2016 when excluding one-time government compensation.
Amidst the new 3-player competitive landscape, Chunghwa has
extended our competitive lead, enlarging our mobile revenue market
share to 40.4% and subscriber share to 37.7%, a testament to our
dynamic and robust growth."
"In the first quarter, our Consumer Business Group sustained
growth across all primary operations. The increase in top-line
revenue was driven by robust growth in mobile services, propelled
by the ongoing transition to 5G, a rise in postpaid subscribers and
roaming revenue growth. We are glad to see multiple-play package
subscriptions grew 23.3% quarter-over-quarter and consumer
cybersecurity subscriptions grew 17% year-over-year, instrumental
to our revenue growth," said Mr. Chau-Young, Lin, President of
Chunghwa Telecom. "Excluding the one-time government compensation
recognized last year, our Enterprise Business Group's revenue also
grew on year. Notably, revenue from our big data analysis expanded
71.6% year-over-year, driven by the smart energy project. We are
equally elated with our International Business Group's performance
this quarter, which achieved double-digit year-over-year growth in
both revenue and income before tax, at 13.3% and 23.5%
respectively, spurred by the escalating demand for international
ICT projects."
"Chunghwa has been investing in AI infrastructure to enhance our
operations while also providing superior service to our clients to
seize opportunities in AI-driven transformation. Simultaneously, we
have been bolstering our content and digital ecosystems, enriching
our video business to cater to diverse customer needs while
elevating user experience," said Mr. Kuo, "Moreover, Chunghwa
remains steadfast in our commitment to integrate low-carbon
sustainable practices throughout our business. In addition to
awards and social recognitions, we are proud to report our
achievements of reducing our carbon emission while our total
revenue delivered consecutive growth."
"Looking ahead, we are buoyed by the various positive
developments in our business. With our dedication to innovation and
delivery of high-quality services and products, we are confident
and enthusiastic about capitalizing our current momentum throughout
the remainder of the year and the years to come." Mr. Kuo
concluded.
Revenue
Chunghwa Telecom's total revenues for the first quarter of 2024
increased by 1.4% to NT$ 54.94
billion.
Consumer Business Group's income before tax for the first
quarter of 2024 increased 3.7% YoY, while revenue increased by 1.7%
to NT$ 34.62 billion. Mobile service
revenue increased 4.2% YoY, mainly due to stable 5G migration,
increase in postpaid subscriber and roaming revenue. Fixed-line
service revenue was flat, while the fixed broadband revenue grew
year over year propelled by the successful upsell of speed upgrade.
Sales revenue decreased 1.5% YoY mainly due to the higher base in
the quarter last year owing to deferred demand resulting from the
supply chain issue.
Enterprise Business Group's income before tax for the first
quarter of 2024 decreased 13.4% YoY, while revenue decreased by
0.9% to NT$ 16.95 billion, mainly due
to the recognition of government compensation in the same period
last year. Excluding the one-time effect, the revenue increased by
1.9%. ICT business revenue increased by 3.3% YoY mainly driven by
the mid-to-high single digit year-over-year revenue growth of big
data services, cybersecurity, AIoT, and cloud services. Mobile
service business revenue also increased by 3.7% YoY owing to the
continued 5G migration and the growth of international roaming
revenue and text message revenue. Fixed-line revenue slightly
decreased year-over-year, though data communication revenue and
broadband access revenue continued to grow.
International Business Group's income before tax for the first
quarter of 2024 increased 23.5% YoY. Its revenue also increased by
13.3% to NT$ 2.41 billion, mainly
driven by the growing ICT business, particularly the growing
demands for overseas ICT projects from clients' global
expansion.
Operating Costs and Expenses
Total operating costs and expenses for the first quarter of 2024
increased by 2.4% to NT$ 43.03
billion, mainly due to higher manpower cost and ICT project
cost resulting from the growing ICT business.
Operating Income and Net Income
Operating income for the first quarter of 2024 decreased by 2.2%
to NT$ 11.91 billion. The operating
margin was 21.7%, as compared to 22.5% in the same period of 2023.
Net income attributable to stockholders of the parent decreased by
2.6% to NT$ 9.39 billion. Basic
earnings per share was NT$1.21.
Cash Flow and EBITDA
Cash flow from operating activities, as of March 31st, 2024, increased by 26.1%
year over year to NT$ 14.13 billion,
mainly due to a decrease in settlement of accounts payable and
payments for inventory.
Cash and cash equivalents, as of March
31st, 2024, decreased by 13.9% to NT$ 33.33 billion as compared to that as of
March 31st, 2023.
EBITDA for the first quarter of 2024 was NT$ 21.82 billion, decreasing by 1.1% year over
year. EBITDA margin was 39.71%, as compared to 40.68% in the same
period of 2023.
Business Highlights
Mobile
As of March 31st, 2024,
Chunghwa Telecom had 13.23 million mobile subscribers, representing
a 4.1% year-over-year increase. In the first quarter, total mobile
service revenue increased by 5.1% to NT$
16.64 billion, while mobile post-paid ARPU excluding IoT
SIMs grew 3.4% year over year to NT$
554.
Fixed Broadband/HiNet
As of March 31st, 2024,
the number of broadband subscribers slightly increased by 0.4% to
4.40 million. The number of HiNet broadband subscribers increased
by 1.0% to 3.70 million. In the first quarter, total fixed
broadband revenue grew 3.8% year over year to NT$ 11.18 billion, while ARPU increased 2.0% to
NT$ 781.
Fixed line
As of March 31st, 2024,
the number of fixed-line subscribers was 9.08 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
