TAIPEI,
July 29, 2022
/PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT)
("Chunghwa" or "the Company") today reported its un-audited
operating results for the second quarter of 2022. 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.)
Second Quarter 2022 Financial Highlights
- Total revenue increased by 5.7% to NT$
52.44 billion.
- Consumer Business Group revenue increased by 3.3% to
NT$ 31.52 billion.
- Enterprise Business Group revenue increased by 9.4% to
NT$ 17.75 billion.
- International Business Group revenue increased by 17.9% to
NT$ 1.76 billion.
- Total operating costs and expenses increased by 5.4% to
NT$ 40.41 billion.
- Net income attributable to stockholders of the parent increased
by 8.1% to NT$ 9.68 billion.
- Basic earnings per share (EPS) was NT$1.25.
"Our second quarter results demonstrate our ongoing progress we
navigating out of the pandemic, as we showcase our outstanding
products and services delivered to satisfy our customers,
employees, shareholders, and the greater community," said Mr.
Chi-Mau Shieh, Chairman and Chief
Executive Officer of Chunghwa Telecom. "We are pleased to deliver
strong quarterly performance with all measures exceeding our
proposed guidance."
"We maintained our leading position once again in terms of
revenue and subscriber numbers, and we are confident in our ability
to maintain this status. In terms of mobile services, we observed
an average 37% uplift in monthly fees, attributable to customers
who renewed contracts to adopt 5G services. Simultaneously, for
broadband business, about 70% of the package adopters opted for
higher-speed services (500Mbps), contributing to speed upgrade and
ARPU enhancement."
"As for segment details, consumer business group revenue grew as
a result of our high-quality services and 5G network development.
Our Fixed-Broadband + Mobile + Wi-Fi program attracted 13.2% more
subscribers this quarter compared to last, and Home Wi-Fi device
sign-ups doubled on a year-over-year basis. Enterprise business
group revenue also increased by 9.4% year-over-year, driven by our
ICT business with a 31.7% growth on a year-over-year basis,
particularly with progress on large smart energy projects. Our
emerging enterprise applications, including AIoT, IDC, cloud, cyber
security, 5G private network and big data etc., reported strong
growth momentum by representing 43.5% year-over-year growth."
"Our global expansion plan remains in progress. During the
quarter, we signed an MOU with Thonburi Hospital in Thailand to develop smart hospital solutions.
In addition, we expect to extend our 5G private network solution to
Southeast Asian market. We remain confident in our high-quality
services and products and believe in our long-term strategies and
goals," Mr. Shieh concluded.
Revenue
Chunghwa Telecom's total revenues for the second quarter of 2022
increased by 5.7% to NT$ 52.44
billion.
Consumer Business Group revenue for the second quarter of 2022
increased by 3.3% to NT$ 31.52
billion, mainly due to a 5.3% YoY increase of mobile service
revenue driven by postpaid subscriber growth and 5G migration.
Fixed-line service revenue increased 1.9% YoY owing to higher-speed
service adoption and IPTV service. Sales revenue slightly increased
2.1% YoY despite the disrupted handset supply chain issue under
COVID-19 and typical seasonality ahead of the new iPhone
launch.
Enterprise Business Group revenue for the second quarter of 2022
increased by 9.4% to NT$ 17.75
billion, mainly due to ICT business revenue increased by
31.7%. Mobile service business revenue increased 13% YoY owing to
5G migration and increased demand for text messages as a result of
COVID-19. Fixed-line revenue decrease 0.4%, though data
communication and broadband access revenue growth offset the
decrease in enterprise voice revenue.
International Business Group revenue for the second quarter of
2022 increased by 17.9% to NT$ 1.76
billion, mainly due to the increase of ICT revenue.
Operating Costs and Expenses
Total operating costs and expenses for the second quarter of
2022 increased by 5.4% year over year to NT$
40.41 billion, mainly due to higher personnel expenses and
depreciation expense.
Operating Income and Net Income
Income from operations for the second quarter of 2022 increased
by 6.6% to NT$ 12.03 billion, mainly
due to the continued growth of profitable core business. The
operating margin was 22.9%, as compared to 22.7% in the same period
of 2021. Net income attributable to stockholders of the parent
increased by 8.1% to NT$ 9.68
billion. Basic earnings per share was NT$1.25.
Cash Flow and EBITDA
Cash flow from operating activities for the first half of 2022
decreased by 0.9% year over year to NT$
27.43 billion, mainly due to income tax payments owing to an
increase of net income.
Cash and cash equivalents, as of June
30th, 2022, increased by 68.9% to NT$ 54.28 billion as compared to that as of
June 30th, 2021. The
increase was primarily attributable to the issuance of
sustainability bonds which supports the Company's investments in
green energy projects to enhance its energy efficiency and the
network deployment in remote areas for social good.
EBITDA for the second quarter of 2022 increased by 5.5% to
NT$ 21.97 billion. EBITDA margin was
41.90%, as compared to 41.99% in the same period of 2021.
Business Highlights
Mobile
As of June 30th, 2022, Chunghwa
Telecom had 12.23 million mobile subscribers, representing a 6.4%
year-over-year increase. Total mobile service revenue increased by
6.1% to NT$ 15.20 billion, while
mobile post-paid ARPU excluding IoT SIMs grew 4% year over year to
NT$ 524.
Fixed Broadband/HiNet
As of June 30th, 2022, the number
of broadband subscribers slightly increased by 0.2% to 4.37
million. The number of HiNet broadband subscribers increased by 1%
to 3.64 million. Total fixed broadband revenue grew 3.6% year over
year to NT$ 10.59 billion, while ARPU
increased 3.1% to NT$ 765.
Fixed line
As of June 30th, 2022, the Company
maintained its leading position in the fixed-line market, with a
total of 9.53 million subscribers.
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