1Q 2024
Operating Results
May 2, 2024
Disclaimer
STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION
The unaudited financial information under T-IFRSs in this presentation is preliminary and subject to adjustments and modifications. Adjustments and modifications to the financial statements may be identified during the course of the audit /review work, which could result in significant differences from this preliminary unaudited financial information.
NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This presentation 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 presentation reflect the current belief of Chunghwa as of the date of this presentation 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 presentation 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.
SPECIAL NOTE REGARDING NON-GAAP FINANCIAL MEASURES
A body of generally accepted accounting principles is commonly referred to as "GAAP". A non-GAAP financial measure is generally defined by the SEC as one that purports to measure historical or future financial performance, financial position or cash flows but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We disclose in this report certain non-GAAP financial measures, including EBITDA. EBITDA for any period 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 expenses, net, (iv) income tax, (v) cumulative effect of change in accounting principle, net of tax and (vi) (income) loss from discontinued operations.
In managing our business we rely on EBITDA as a means of assessing our operating performance. We believe that EBITDA can be useful to facilitate comparisons of operating performance between periods and with other companies 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 and tax on assets and statutory employee profit sharing, which is similar to a tax on income and (iv) other expenses or income not related to the operation of the business.
EBITDA is not a measure of financial performance under U.S. GAAP or T-IFRSs. EBITDA should not be considered as an alternate measure of net income or income from operations, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with U.S. GAAP or T-IFRSs, as an indicator of operating performance or as cash flows from operating activity or as a measure of liquidity. EBITDA has material limitations that impair its value as a measure of a company's overall profitability since it does not address certain ongoing costs of our business that could significantly affect profitability such as financial expenses and income taxes, depreciation, pension plan reserves or capital expenditures and associated charges. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non- GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.
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Chairman's Message
Leadership expanded in the post-merger market due to strong business growth
- Continuous market share expansion to drive overall performance
- Revenue hit a new peak for the same period since 2017
- Income before tax reached a record high for the same period since 2016 excluding the one-time item in 1Q23
Deploy resources to capture AI benefits and exponential growth opportunities:
- Leverage AI to drive operational efficiency and reduce cost:
- Facilitate AI to predict network degradation to achieve operation efficiency and cost reduction
- Utilize Gen AI to improve problem-shooting of network maintenance and customer service
- Build computility infrastructure across cloud, edge, and terminals and develop GPU as a service in progress to cater to AI exponential opportunities
Expand content deployment and digital ecosystems:
- Obtain exclusive broadcasting rights of 2024 Paris Summer Olympic Games to enrich our content portfolio and bring in subscribers and revenue
- Our investment in the Fund of Cultural Content Industry approved by our Board of Directors to expand content deployment
© Chunghwa Telecom | 3 |
Business Overview
© Chunghwa Telecom | 4 |
Business Overview
Mobile Service
Mobile Revenue & Subs
Market Share
090 Postpaid ARPU 3.4% YoY
12 Consecutive Quarters of Growth
CHT Others
CHT Others
CHT's Mobile revenue market share: 40.4%
CHT 39.8%
CHT's Mobile subs market share: 37.7%
Source: Company data ,NCC statistics Rev:Jan. 2024 to Mar. 2024
Sub: as of Mar. 2024
Note:Revenues definition from NCC (excluding IoT SIMs)
Monthly fee uplift | Mobile service revenue(a) | |||||||||||||||
from 4G | ||||||||||||||||
YoY ▲ 5.1% | ||||||||||||||||
▲ 45% | ||||||||||||||||
(Billion) | ||||||||||||||||
20 | 536 | 545 | 553 | 556 | 554 | 600 | ||||||||||
500 | ||||||||||||||||
15 | ||||||||||||||||
400 | ||||||||||||||||
10 | 300 | |||||||||||||||
15.83 | 16.17 | 16.42 | 16.59 | 16.64 | 200 | |||||||||||
5 | ||||||||||||||||
100 | ||||||||||||||||
0 | 0 | |||||||||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | ||||||||||||
Mobile Service Revenue | 090 Postpaid ARPU | |||||||||||||||
Source:Company data as of Mar. 2024 | |
a) Consolidated Mobile Service Revenue (Including IoT) | 5 |
© Chunghwa Telecom
Business Overview
Fixed Broadband Service
ARPU YoY Growth for
18 Consecutive Quarters
Fixed Broadband Revenue(a) YoY ▲ 3.8% Fixed Broadband ARPU YoY ▲ 2.0%
Higher-Speed Adoption Growth
300M+ Subs YoY ▲ 29%
(Million)
12,000
10,000
8,000
6,000
4,000
2,000
0
766
10,771
774
10,907
775
10,952
780 781
700
600
500
400
11,118 | 11,176 |
300
200
100
0
(Thousand) | ||||
4,381 | 4,382 | 4,389 | 4,403 | 4,397 |
24.1% | 26.1% | 27.9% | 29.4% | 30.9% |
27.4% | 26.3% | 26.7% | 26.9% | 27.1% |
34.2% | 33.4% | 31.6% | 30.1% | 28.7% |
14.3% | 14.1% | 13.8% | 13.6% | 13.3% |
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
Fixed Broadband Revenue | Fixed Broadband ARPU | |||
Note : (a) Revenue is calculated based on T-IFRSs |
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | |||
ADSL | Fiber (<100M) | ||||||
Fiber (≥100M~<300M) | Fiber (≥300M) | ||||||
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Segment Reporting
© Chunghwa Telecom | 7 |
Consumer Business Group (CBG)
1Q24 Financial Summary
Income before tax increased NT$0.28 billion, or 3.7 % YoY
Revenue
+1.7% YoY
Mobile service revenue of CBG +4.2% YoY due to 5G migration, continued growth of postpaid subscribers, and roaming revenue
(Billion)
34.05
34.62
35 | 0.55 | 0.60 |
30 | 9.38 | 9.24 |
25 | ||
20 | 10.60 | 10.69 |
15 | ||
10 |
Fixed broadband revenue of CBG +4.6% YoY due to successful speed upgrades
5 | 13.52 | 14.09 | Sales revenue of CBG fell 1.5% |
0 | YoY due to higher base in 1Q23 | |||||
1Q23 | 1Q24 | |||||
Mobile Services | Fixed-line Services | |||||
Sales | Others | |||||
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Consumer Business Group (CBG)
1Q24 Highlights
Multiple-Play Package | IPTV/MOD + OTT | Consumer Cybersecurity | ||||
Performance | Business Performance | Subscriptions | ||||
Fixed-Broadband + Mobile | Largest video platform in | Consumer Cybersecurity | ||||
+ Wi-Fi Service package | Taiwan with subscribers | Subscriptions + 17.1 % YoY | ||||
subscription +23.3 % QoQ | remained flat | |||||
YoY ▲ 17.1% | ||||||
23.3% | ||||||
2,890 | 2,890 | 2,885 | ||||
2,871 |
17.6% | 2,844 |
16.4% | |
14.0% | |
10.2% |
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 1Q23 | 1Q24 | ||
Multiple-Play Package subscription QoQ | IPTV(MOD)+OTT Subscription(K) | Consumer Cybersecurity subscriptions | |||||||||||
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Enterprise Business Group (EBG)
1Q24 Financial Summary
Income before tax decreased NT$0.53 billion, or
Excluding one-time item last year, | | 1.5% YoY |
13.4% YoY
Revenue
-0.9% YoY
Excluding one-time | ||||||||||
(Billion) | item, EBG revenue | |||||||||
20 | YoY ▲ 1.9% | |||||||||
17.10 | ||||||||||
16.95 | ||||||||||
16 | 1.40 | 1.05 | ||||||||
5.14 | 5.31 | |||||||||
12 | ||||||||||
8 | ||||||||||
8.39 | 8.33 | |||||||||
4 | ||||||||||
2.17 | 2.25 | |||||||||
0 | ||||||||||
1Q23 | 1Q24 | |||||||||
Mobile Services | Fixed-line Services | |||||||||
ICT Business | Others | |||||||||
EBG revenue -0.9% YoY mainly due to the higher base resulting from the onetime item in the same period last year, excluding the item mentioned above, EBG revenue YoY +1.9%
EBG Mobile service revenue continued to grow due to 5G migration, international roaming recovery and an increase in text message revenue
EBG ICT business revenue increased mainly driven by the strong growth in our emerging services such as cloud, cybersecurity, AIoT and big data
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Chunghwa Telecom Co. Ltd. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 11:52:02 UTC.