TAIPEI, Jan. 31,
2023 /PRNewswire/ -- Chunghwa Telecom Co., Ltd.
(TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today
reported its guidance for 2023 on a consolidated basis. All figures
were prepared in accordance with Taiwan-International Financial
Reporting Standards ("T-IFRSs").
Mr. Chi-Mau Sheih, Chairman and
CEO of Chunghwa Telecom, stated: "Looking into 2023, Chunghwa will
focus on 'sustainability + 5G + innovative transformation' as our
core strategy, and will integrate sustainable development with
business operation, accelerate 5G network construction and
strengthen innovative transformation to create a new growth curve.
We focus on our three major business groups – 'Consumer, Enterprise
and International Business Groups' – combined with our three
technology groups – 'Network Technology Group, Information
Technology Group and Telecommunication Laboratories' – to promote
the empowerment of operations and technology. In order to drive up
business growth, we will strengthen our core capabilities and
infrastructure, improve operational resilience, enhance customer
insight, improve talent development, reinvest into operations and
grasp business opportunities, including net-zero transformation, 5G
and 5G enterprise private networks, Forward-looking Infrastructure
Development Program 2.0, post-pandemic opportunities and smart
applications, among others."
"Given the new market competition landscape in Taiwan due to telecom industry consolidation,
we remain confident to maintain our leadership in mobile service
revenue and subscriber market share by offering our fastest 5G
network and most extensive mobile coverage acknowledged
internationally and domestically. Simultaneously, we will continue
to accelerate the expansion of 5G enterprise private network and
develop 5G smart applications alongside enterprise partners to
further propel mobile business revenue and drive the growth of our
ICT businesses. In addition, our strategy is to leverage our
high-quality fixed broadband quality to enhance speed upgrade and
multiple-play services, strengthening the user experience and
maintaining growth dynamics in the fixed broadband business. In
terms of video services, we will increase investment in MOD content
and join together with Hami Video to meet diverse-viewing needs and
further increase customer numbers and ARPU, driving the overall
revenue growth of video business."
"Chunghwa Telecom fully supports the government's Net-Zero
Emissions By 2050 plan, and continues to strengthen its network
resilience and information security, providing the most reliable
telecommunication services. The Company also strives to capture the
business opportunities of ESG sustainability, remote zero-contact
opportunities, 5G and digital transformation, by increasing
investments in developing emerging businesses. With a focus on
enhancing the strategic synergy of the Group, we are devoted to
maximizing value for our shareholders, customers, society and
employees."
For 2023, the Company expects total revenue to increase by NT$
4.53~NT$6.05 billion, or 2.1%~2.8%, to NT$221.27~NT$222.79 billion
as compared to the un-audited consolidated total revenue of 2022.
The increase in revenue is expected to be driven by increases in
mobile communications revenue, broadband access revenue, and data
communications revenue, as well as revenue coming from the
expansion of emerging business in the digital economy.
Operating costs and expenses for 2023 are expected to increase
by NT$ 6.60~NT$ 7.30 billion, or 3.9%~4.3%, to NT$176.59~NT$177.29
billion as compared to the prior year. The increase is mainly from
the increasing cost of investment in in talents and infrastructure
that supports future business development in core and emerging
businesses.
Income from operations is expected to decrease by NT$
0.85~NT$2.17 billion, or 1.8%~4.6% to NT$44.67~NT$45.99 billion as
compared to the prior year. Income before income tax, net income
attributable to stockholders of the parent and net earnings per
share are expected to be NT$44.86~NT$46.58billion,
NT$34.55~NT$36.10 billion and NT$4.45~NT$4.65, respectively,
representing a decrease of NT$0.69~NT$2.41 billion, a decrease of
NT$0.42 ~NT$
1.97billion and a decrease of NT$0.06~0.26 respectively,
year over year.
Acquisition of Property, Plant and Equipment in 2023 is expected
to be NT$ 35.31 billion to maintain
competitiveness of 5G network and gain the opportunities of
emerging businesses. As compared to the prior year, the
mentioned acquisition is expected to increase by NT$1.88 billion, owing to strategic investments,
including expansion of internet data center, new construction of
submarine cable and FTTH for future business opportunities.
(NT$ billion except
EPS)
|
2023(F)
|
2022
(un-audited)
|
change
|
YoY(%)
|
Revenue
|
221.27~222.79
|
216.74
|
4.53~6.05
|
2.1%~2.8%
|
Operating Costs and
Expenses
|
176.59~177.29
|
169.99
|
6.60~7.30
|
3.9%~4.3%
|
Other Income and
Expense
|
(0.01)~0.49
|
0.09
|
(0.10)~0.40
|
(111.1%)~444.4%
|
Income from
Operations
|
44.67~45.99
|
46.84
|
(2.17)~(0.85)
|
(4.6%)~(1.8%)
|
Non-operating
Income
|
0.19~0.59
|
0.43
|
(0.24)~0.16
|
(55.8%)~37.2%
|
Income before Income
Tax
|
44.86~46.58
|
47.27
|
(2.41)~(0.69)
|
(5.1%)~(1.5%)
|
Net Income Attributable
to Stockholders of The Parent
|
34.55~36.10
|
36.52
|
(1.97)~(0.42)
|
(5.4%)~(1.2%)
|
EPS(NT$)
|
4.45~4.65
|
4.71
|
(0.26)~(0.06)
|
(5.4%)~(1.2%)
|
EBITDA
|
85.05~86.36
|
86.27
|
(1.22)~0.09
|
(1.4%)~0.1%
|
EBITDA
Margin
|
38.4%~38.7%
|
39.8 %
|
(1.4%)~(1.1%)
|
|
Acquisition of Material
Assets
|
37.71
|
33.86
|
3.85
|
11.4 %
|
Acquisition of
Property,
Plant and Equipment
and Intangible Assets
|
35.31
|
33.43
|
1.88
|
5.6 %
|
Others
|
2.40
|
0.43
|
1.97
|
458.1 %
|
Disposal of Material
Assets
|
0.47
|
0.03
|
0.44
|
1466.7 %
|
Note 1: "Other income and expenses" includes gains (losses) on
disposal of property, plant and equipment (PP&E) and investment
property, and impairment loss on PP&E and investment
property.
Note 2: The calculation of growth rates is based on NT$
thousand.
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