TAIPEI, Jan. 26, 2022 /PRNewswire/ -- Chunghwa
Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the
Company") today reported its un-audited operating results for the
fourth quarter and full year of 2021. 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.)
Fourth Quarter 2021 Financial Highlights
- Total revenue increased by 0.7% to NT$59.89 billion.
- Mobile communications revenue increased by 9.0% to NT$27.20 billion.
- International fixed communications revenue increased by 23.7%
to NT$ 2.64 billion.
- Total operating costs and expenses decreased by 3.7% to
NT$48.42 billion.
- Net income attributable to stockholders of the parent increased
by 5.1% to NT$8.63 billion.
- Basic earnings per share (EPS) was NT$1.11.
Full Year 2021 Financial Highlights
- Total revenue increased by 1.4% to NT$210.48 billion
- Mobile communications revenue increased by 5.6% to NT$ 95.25 billion
- Internet revenue increased by 3.0% to NT$ 33.08 billion
- International fixed communications revenue increased by 4.6% to
NT$ 9.10 billion
- Total operating costs and expenses decreased by 1.0% to
NT$ 165.18 billion
- Net income attributable to stockholders of the parent increased
by 7.0% to NT$ 35.75 billion.
- Basic earnings per share (EPS) was NT$4.61
"Our fourth quarter results reflect another strong finish to a
year of significant growth and momentum for Chunghwa despite
challenges in the ongoing pandemic environment. I would like to
thank the entire Chunghwa team for their ongoing efforts," said Mr.
Chi-Mau Sheih, Chairman, and CEO of
Chunghwa Telecom." After following
a customer-centric transformation plan for the past three years, we
have enhanced our overall competitiveness and strengthened business
performance and bottom line by making our EBITDA margin, net income
and EPS grew year over year during the past three consecutive
years."
Chairman Sheih added, "Driven by strong market demand, we
delivered solid results in the fourth quarter. 5G penetration rate
reached approximately 20% and is expected to reach 30% in 2022.
Mobile service revenue continued to increase, and we observed an
average of 39% uplift in monthly fees attributable to customers'
contract renewals, which sustained upward APRU trend. Powered by
accelerated 5G deployment at better spectrum locations, we were
pleased that Speedtest, the well-known international institute,
awarded us the Winner for the Fastest 5G and Best Mobile Network
Speed during Q3-Q4 2021 in Taiwan,
and we are confident to maintain our lead in network quality and
acquire more 5G subscribers in 2022."
"Our broadband revenue has maintained its 23-month upward trend,
achieving a record high in December. As demand for smart life
solutions increases, Chunghwa plans to develop and provide
home-centric services. MOD revenue maintained its year-over-year
growth trend as 90% of subscribers opted for the highest price
package. To sustain this upward trend, we aim to develop video
services through various channels, such as providing more popular
content and leveraging 5G to create immersive viewing experiences.
In addition, we are delighted to achieve our full-year revenue and
margin targets for ICT business."
Mr. Sheih concluded, "As we look forward to 2022 and beyond, I
am excited to introduce our re-organized business groups. We expect
this new structure will allow us to be more customer-centric and
better serve our clients as we continue to create value for our
stakeholders."
Revenue
Chunghwa Telecom's total revenues for the fourth quarter of 2021
increased by 0.7% to NT$59.89
billion.
Domestic fixed revenue for the fourth quarter of 2021 decreased
by 10.4% year over year to NT$18.12
billion, mainly due to the decrease of ICT project
revenue.
Mobile communications revenue for the fourth quarter of 2021
increased by 9.0% to NT$27.20
billion, mainly due to the increase in revenues from handset
sales and mobile service revenue driven by the increased adoption
of 5G services as well as the iPhone 13 launch.
Internet business revenue for the fourth quarter of 2021
decreased by 3.4% year over year to NT$9.39
billion.
International fixed communications revenue increased by 23.7% to
NT$2.64 billion.
Total revenue for the full year of 2021 increased by 1.4% to
NT$210.48 billion.
Operating Costs and Expenses
Total operating costs and expenses for the fourth quarter of
2021 decreased by 3.7% year over year to NT$48.42 billion, mainly due to lower ICT project
costs, partially offset by higher cost of goods sold.
Total operating costs and expenses for 2020 decreased by 1.0% to
NT$165.18 billion.
Operating Income and Net Income
Income from operations for the fourth quarter of 2021 increased
by 5.8% to NT$11.10 billion. The
operating margin was 18.5%, as compared to 17.7% in the same period
of 2020. Net income attributable to stockholders of the parent
increased by 5.1% to NT$8.63 billion.
Basic earnings per share was NT$1.11.
Income from operations for 2021 increased by 6.1 % to
NT$ 44.93 billion. The operating
margin was 21.3%, compared to 20.4% for 2020. Net income
attributable to stockholders of the parent increased by 7.0 % to
NT$ 35.75 billion. Basic earnings per
share was NT$4.61.
Cash Flow and EBITDA
Cash flow from operating activities for the fourth quarter of
2021 decreased by 2.4% to NT$26.89
billion, which was mainly due to an increase in accounts
receivable resulting from ICT projects.
Cash and cash equivalents, as of December
31st, 2021, increased by 30.9% to NT$ 39.82 billion, as compared to that as of
December 31st, 2020, which
was primarily attributable to the issuance of corporate bonds.
EBITDA for the fourth quarter of 2021 increased by 4.8% to
NT$20.86 billion. EBITDA margin was
34.82%, as compared to 33.45% in the same period of 2020.
EBITDA for 2021 increased by 5.9 % to NT$
83.33 billion, and EBITDA margin was 39.59%, compared to
37.91% for 2020.
Capital Expenditure ("Capex")
Total Capex for the fourth quarter of 2021 increased by 29.7% to
NT$ 12.30 billion.
Business and Operational Highlights
Broadband/HiNet
The Company continued to execute its strategy of encouraging
FTTx migration. As of December
31st, 2021, the number of FTTx subscribers
reached 3.69 million, accounting for 84.7% of the Company's total
broadband users. Moreover, the number of subscribers signing up for
speeds of 100Mbps or higher increased by 13.6% year over year,
reaching 2.00 million.
HiNet broadband subscribers increased by 0.8% year over year to
3.61 million as of December
31st, 2021.
Mobile
As of December 31st,
2021, Chunghwa Telecom had 11.92 million mobile subscribers,
representing a 5.5% year-over-year increase.
Fixed line
As of December 31st,
2021, the Company maintained its leading position in the fixed-line
market, with a total of 9.65 million subscribers.
(in NT$ billion)
|
2021
|
2020
|
YoY%
|
|
Oct.-Dec.
|
Jan.-Dec.
|
Oct.-Dec.
|
Jan.-Dec.
|
Oct.-Dec.
|
Jan.-Dec.
|
Revenue
|
59.89
|
210.48
|
59.48
|
207.61
|
0.7
|
1.4
|
Operating costs and
expenses
|
48.42
|
165.18
|
50.30
|
166.85
|
-3.7
|
-1.0
|
Other income and
expense
|
-0.37
|
-0.37
|
1.32
|
1.60
|
-127.8
|
-123.2
|
Income from
Operations
|
11.10
|
44.93
|
10.50
|
42.36
|
5.8
|
6.1
|
Income before Income
Tax
|
11.17
|
46.06
|
10.41
|
42.83
|
7.3
|
7.5
|
Net income
attributable to stockholders of the parent
|
8.63
|
35.75
|
8.21
|
33.41
|
5.1
|
7.0
|
EBITDA
|
20.85
|
83.33
|
19.90
|
78.71
|
4.8
|
5.9
|
EPS(NT$)
|
1.11
|
4.61
|
1.06
|
4.31
|
5.1
|
7.0
|
2022 Guidance
For 2022, the Company expects total revenue to increase by NT$
2.32~NT$3.52 billion, or 1.1%~1.7%, to NT$212.80~NT$214.00 billion
as compared to the un-audited consolidated total revenue of 2021.
Operating costs and expenses for 2022 are expected to increase by
NT$3.24~NT$3.63 billion, or 2.0%~2.2%, to NT$168.42~NT$168.81
billion as compared to the prior year. Income from
operations is expected to decrease by NT$
0.38 billion, to an increase by NT$
1.15 billion, or -0.8%~2.6%, to NT$44.55~NT$46.08 billion,
year over year. Income before income tax and net income
attributable to stockholders of the parent are expected to be
NT$44.58~NT$46.83 billion and NT$34.11~NT$36.04 billion,
respectively. Basic earnings per share is expected to be
NT$4.40~NT$4.65.
Acquisition of Property, Plant and Equipment and Intangible
Assets in 2022 is expected to increase by NT$1.18 billion to 36.77 billion as compared to
the prior year, owing to strategic investments, including our 5G
deployment to maintain competitive edge, the expansion of internet
data center, new construction of submarine cable, the elimination
of energy-intensive equipment, as well as the expansion of asset
revitalization. Disposal of Material Assets in 2022 is expected to
decrease by 2.73 billion as compared to the prior year, due to the
disposal of common shares of China Airlines in 2021.
(NT$ billion except
EPS)
|
2022(F)
|
2021
(un-audited)
|
change
|
YoY(%)
|
Revenue
|
212.80~214.00
|
210.48
|
2.32~3.52
|
1.1%~1.7%
|
Operating Costs and
Expenses
|
168.42~168.81
|
165.18
|
3.24~3.63
|
2.0%~2.2%
|
Other Income and
Expense
|
0.17~0.89
|
-0.37
|
0.54~1.26
|
146.6%~341.5%
|
Income from
Operations
|
44.55~46.08
|
44.93
|
(0.38)~1.15
|
(0.8%)~2.6%
|
Non-operating
Income
|
0.03~0.75
|
1.13
|
(1.10)~(0.38)
|
(97.1%)~(33.1%)
|
Income before Income
Tax
|
44.58~46.83
|
46.06
|
(1.48)~0.77
|
(3.2%)~1.7%
|
Net Income
Attributable to Stockholders of The Parent
|
34.11~36.04
|
35.75
|
(1.64)~0.29
|
(4.6)~0.8%
|
EPS(NT$)
|
4.40~4.65
|
4.61
|
(0.21)~0.04
|
(4.6)~0.8%
|
EBITDA
|
82.91~84.44
|
83.33
|
(0.42)~1.11
|
(0.5%)~1.3%
|
EBITDA
Margin
|
39.0%~39.5%
|
39.6%
|
(0.6%)~(0.1%)
|
|
Acquisition of
Material Assets
|
36.92
|
36.23
|
0.69
|
1.9%
|
Acquisition of
Property,
Plant and Equipment
and Intangible Assets
|
36.77
|
35.59
|
1.18
|
3.3%
|
Others
|
0.15
|
0.64
|
(0.49)
|
(76.7%)
|
Disposal of Material
Assets
|
0.22
|
2.95
|
(2.73)
|
(92.5%)
|
Note 1: "Other income and expenses" includes gains (losses) on
disposal of property, plant and equipment (PP&E) and investment
property, and impairment loss on PP&E and investment
property.
Note 2: The calculation of growth rates is based on NT$
thousand.
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. In recent
years, Chunghwa has been actively involved in corporate social
responsibility and has won domestic and international awards and
recognition. 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