TAIPEI, Nov. 1, 2022
/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 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.)
Third Quarter 2022 Financial Highlights
- Total revenue increased by 5.2% to NT$
53.51 billion.
- Consumer Business Group revenue increased by 3.8% to
NT$ 32.83 billion.
- Enterprise Business Group revenue increased by 5.1% to
NT$ 17.39 billion.
- International Business Group revenue increased by 22.6% to
NT$ 1.80 billion.
- Total operating costs and expenses increased by 4.7% to
NT$ 41.30 billion.
- Operating income increased by 6.7% to NT$ 12.21 billion.
- EBITDA increased by 5.0% to NT$ 22.13
billion.
- Net income attributable to stockholders of the parent decreased
by 0.4% to NT$ 9.33 billion.
- Basic earnings per share (EPS) was NT$1.20.
- Above mentioned financial indicators, including operating
income, EBITDA, and net income, all exceeded our proposed
guidance.
"We are extremely pleased to announce our robust financial and
operational performance; the Company has beat all of its proposed
guidance measures in the third quarter, driven by strong
fundamentals in the face of an uncertain macroeconomy," said Mr.
Chi-Mau Sheih, Chairman and Chief
Executive Officer of Chunghwa Telecom. "Chunghwa is benefitting
from the acceleration of Taiwan's
mobile market development and adoption of 5G, and we are glad to
participate and play such a key role in this valuable and
competitive market."
"Chunghwa is winning market share organically, despite the
ongoing consolidation in the market. We are pleased to see that
both CHT's mobile revenue and subscriber count
increased year-over year during the quarter, making the
Company the only operator able to continue to grow market share. In
addition, our revenue share was larger than the subscriber share,
suggesting that our customer-centric business strategy is proven
successful. With our advantages, including our extensive network
deployment, solid fundamentals and absolute market and revenue
share prominence, we are exceptionally confident in the solid hold
we have on our leadership position in Taiwan going forward. At the same time, our
fixed broadband business continues to witness a continuous growth
with a rapid pace of upgrade adoptions for service speeds of
500Mbps or higher."
"As for segment details, we are pleased to see our consumer
business group achieve its 3rd consecutive quarter of
year-over-year growth, mainly driven by increased wins of postpaid
subscribers and successful 5G migration, as well as the benefits of
the launch of iPhone 14 and Chunghwa's impressive 2.7 million video
service subscribers. We are also excited the upcoming FIFA World
Cup, which is expected to help drive strong MOD and Hami Video
subscription well into the second half of this year as we obtained
the exclusive broadcasting rights. Our enterprise business group
segment also sustained year-over-year growth for the 3rd quarter
due to the strong double-digit increase in our ICT business,
including 5G private network, big data, cyber security, cloud
service, and IDC. We are also happy to see strong year-over-year
growth from our international business segment during the third
quarter, mainly due to the enlarging demand for IDC and cloud
services from global clients, as border restrictions were relaxed,
the international roaming revenue also increased
year-over-year."
"In addition, we have always taken a concerted effort to
contribute to the benefit of our society and make continuous
investments in our ESG initiatives. We remain confident in our
long-term strategies and will continue to provide excellent
services to our customers, while continuing to work to benefit our
stakeholders," Mr. Sheih concluded.
Revenue
Chunghwa Telecom's total revenues for the third quarter of 2022
increased by 5.2% to NT$ 53.51
billion.
Consumer Business Group revenue for the third quarter of 2022
increased by 3.8% to NT$ 32.83
billion. Mobile service revenue increased 5.4% YoY, mainly
due to increase in postpaid subscriber growth and 5G migration.
Fixed-line service revenue slightly increased 0.04% YoY owing to
successful upsell propelled by HiNet high-speed promotion package
(速在必行). However, fixed voice revenue continued to decline even
though the slope has decelerated. Sales revenue increased 5.4% YoY
driven by the iPhone 14 launch, as well as better sales number of
high-end models compared to the previous one.
Enterprise Business Group revenue for the third quarter of 2022
increased by 5.1% to NT$ 17.39
billion, mainly due to ICT business revenue increased by
10.4% YoY. Mobile service business revenue increased 0.8% YoY owing
to 5G migration. Fixed-line revenue decrease 2.0%, though digital
transformation demand continued to drive up data communication
revenue and broadband access revenue. Other revenue increased by
72.3% year over year due to the higher revenue recognition of 5G
subsidies and increased sales revenue of iPhone 14 in the
enterprise sector.
International Business Group revenue for the third quarter of
2022 increased by 22.6% to NT$ 1.80
billion, mainly due to the increase of ICT revenue.
Operating Costs and Expenses
Total operating costs and expenses for the third quarter of 2022
increased by 4.7% year over year to NT$
41.30 billion, mainly due to higher manpower expenses and
depreciation expenses from 5G network deployment.
Operating Income and Net Income
Income from operations for the third quarter of 2022 increased
by 6.7% to NT$ 12.21 billion, mainly
due to the continued growth of profitable core business. The
operating margin was 22.8%, as compared to 22.5% in the same period
of 2021. Net income attributable to stockholders of the parent
decreased by 0.4% to NT$ 9.33
billion. Basic earnings per share was NT$1.20.
Cash Flow and EBITDA
Cash flow from operating activities, as of September 30th, 2022, decreased by
1.6% year over year to NT$ 47.23
billion, mainly due to settlement of accounts payable.
Cash and cash equivalents, as of September 30th, 2022, decreased by
17.4% to NT$ 32.88 billion as
compared to that as of December
31st, 2021. The decrease was primarily
attributable to payment of dividends and acquisition of property,
plant and equipment.
EBITDA for the third quarter of 2022 increased by 5.0% to
NT$ 22.13 billion. EBITDA margin was
41.35%, as compared to 41.40% in the same period of 2021.
Business Highlights
Mobile
As of September 30th,
2022, Chunghwa Telecom had 12.42 million mobile subscribers,
representing a 5.8% year-over-year increase. In the third quarter,
total mobile service revenue increased by 4.2% to NT$ 15.37 billion, while mobile post-paid ARPU
excluding IoT SIMs grew 1.8% year over year to NT$ 526.
Fixed Broadband/HiNet
As of September 30th,
2022, the number of broadband subscribers slightly increased by
0.5% to 4.38 million. The number of HiNet broadband subscribers
increased by 1.1% to 3.66 million. In the third quarter, total
fixed broadband revenue grew 3.3% year over year to NT$ 10.75 billion, while ARPU increased 2.4% to
NT$ 767.
Fixed line
As of September 30th,
2022, the number of fixed-line subscribers was 9.47 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. 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