TAIPEI, Feb. 2, 2023
/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
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.)
Fourth Quarter 2022 Financial Highlights
- Total revenue decreased by 0.7% to NT$
59.50 billion.
- Consumer Business Group revenue decreased by 2.1% to
NT$ 35.00 billion.
- Enterprise Business Group revenue increased by 2.9% to
NT$ 21.19 billion.
- International Business Group revenue decreased by 7.1% to
NT$ 1.92 billion. (increased 19.7%,
excluding the non-recurring impact from higher base of government
subsidy recognition)
- Total operating costs and expenses increased by 0.4% to
NT$ 48.63 billion.
- Operating income decreased by 1.2% to NT$ 10.97 billion.
- EBITDA was NT$ 20.85 billion,
remained flat.
- Net income attributable to stockholders of the parent decreased
by 2.2% to NT$ 8.45 billion.
- Basic earnings per share (EPS) was NT$1.09.
- Revenue, net income, and EBITDA exceeded our proposed
guidance.
Full Year 2022 Financial Highlights
- Total revenue increased by 3.0% to NT$216.74 billion.
- Consumer Business Group revenue increased by 1.7% to
NT$ 132.07 billion.
- Enterprise Business Group revenue increased by 4.8% to
NT$ 72.14 billion.
- International Business Group revenue increased by 10.1% to
NT$ 7.19 billion.
- Total operating costs and expenses increased by 2.9% to
NT$ 169.99 billion.
- Operating income increased by 4.2% to NT$ 46.84 billion.
- EBITDA increased by 3.5% to NT$ 86.27
billion.
- Net income attributable to stockholders of the parent increased
by 2.1% to NT$ 36.52 billion.
- Basic earnings per share (EPS) was NT$4.71
- Above mentioned financial indicators, including operating
income, EBITDA, and net income, all exceeded our proposed
guidance.
"Fourth quarter results reflect our team's continued strong
execution against our long-term strategies and are consistent with
our expectations. We are glad to see that all performance measures
of our full-year 2022 results exceeded our original forecasts amid
an increasingly uncertain economic environment," said Mr.
Chi-Mau Shieh, Chairman and Chief
Executive Officer of Chunghwa Telecom. "Chunghwa reaffirms its
leading position sustained by the steady development of
Taiwan's mobile market."
"In the fourth quarter, we were delighted to see the continued
growth in our core business. Our total mobile service revenue
maintained growth momentum by increasing 5.8% year over year,
attributable to the upsell resulting from 5G migration and the
outperforming subscriber number increase. Fixed broadband business
also maintained ARPU year-over-year growth for 13 consecutive
quarters. "
"As for segment details, consumer business group revenue
increased quarter-over-quarter and decreased year-over-year mainly
owing to unstable iPhone supply due to the pandemic, offset by the
increase of postpaid subscribers, steady 5G migration, and
successful upsell propelled by the promotion package and the FIFA
World Cup broadcast. Subscribers of the multiple-play package with
Fixed-Broadband, Mobile, and Wi-Fi altogether increased 28%
quarter-over-quarter and Home Wi-Fi device subscription numbers
impressively grew, exceeding 1.5 times year-over-year. Driven by
the FIFA World Cup, the related advertising revenue was 5 times
more than that of four years ago, which has also directed us to our
future content investment focus. Our enterprise business group
maintained its growth trajectory mainly due to the robust growth of
ICT business, particularly in IDC, cyber security, 5G private
networks, and big data services, which have all achieved
double-digit year-over-year increases. Simultaneously, our
international business expanded mainly attributable to enlarging
demands for IDC and cloud services from global clients although its
total revenue decreased year over year due to higher base resulting
from ST-2 government compensation."
"Our technical support center in Malaysia officially started operations in
December to fully support our business expansion in the
Indo-Pacific market. Additionally, we have always taken a concerted
effort to contribute to the benefit of our society and make
continuous investments in our ESG initiatives."
"We expect the efforts of our employees that led to our strong
performance in 2022 will define 2023 as well. We recognize the
evolving industry landscape with the regulatory approval of our
peers' merger plans, and we are confident in our strong 5G
performance, network and service quality, and in maintaining our
leading status in the changing Taiwan communications market. Meanwhile, we
will continue our focus on building ecosystems and creating
long-term value for all stakeholders," Mr. Shieh concluded.
Revenue
Chunghwa Telecom's total revenues for the
fourth quarter of 2022 decreased by 0.7% to NT$ 59.50 billion.
Consumer Business Group revenue for the fourth quarter of 2022
decreased by 2.1% to NT$ 35.00
billion. Mobile service revenue increased 7.1% YoY, mainly
due to increase in postpaid subscriber growth and steady 5G
migration. Fixed-line service revenue slightly increased 0.8% YoY
owing to successful upsell propelled by the speed upgrade promotion
package as well as the FIFA World Cup broadcast in November that
offset the decrease of fixed voice revenue. However, sales revenue
decreased 12.0% YoY mainly due to the continued unstable iPhone
supply during the quarter. Other revenue also decreased by 34.9%
year-over-year, owing to the higher base resulting from the
government subsidies for accelerated 5G construction in the fourth
quarter of 2021.
Enterprise Business Group revenue for the fourth quarter of 2022
increased by 2.9% to NT$ 21.19
billion, mainly due to strong ICT business growth and the
increase of consolidated sales revenue. Mobile service business
revenue increased 3.3% YoY owing to 5G upselling and the
increase of customers. Fixed-line revenue remained flat, though
digital transformation demand continued to drive up data
communication revenue and broadband access revenue. Other revenue
increased by 46.8% year over year due to the equipment sales
revenue from subsidiaries.
International Business Group revenue for the fourth quarter of
2022 decreased by 7.1% to NT$ 1.92
billion, mainly due to higher base of ST-2 government
subsidy recognition in the fourth quarter of 2021. Excluding the
non-recurring impact, the revenue in the fourth quarter maintained
its growth momentum and increased 19.7% year-over-year.
Total revenue for the full year of 2022 increased by 3.0% to
NT$216.74 billion, mainly due to
growing core business including mobile, ICT and broadband
services.
Operating Costs and Expenses
Total operating costs
and expenses for the fourth quarter of 2022 remained stable,
increasing by 0.4% to NT$ 48.63
billion.
Total operating costs and expenses for 2022 increased by 2.9% to
NT$ 169.99 billion.
Operating Income and Net Income
Income from operations
for the fourth quarter of 2022 decreased by 1.2% to NT$ 10.97 billion. The operating margin was
18.4%, as compared to 18.5% in the same period of 2021. Net income
attributable to stockholders of the parent decreased by 2.2% to
NT$ 8.45 billion. Basic earnings per
share was NT$1.09.
Income from operations for 2022 increased by 4.2% to
NT$ 46.84 billion. The operating
margin was 21.6%, compared to 21.3% for 2021. Net income
attributable to stockholders of the parent increased by 2.1% to
NT$ 36.52 billion. Basic earnings per
share was NT$4.71.
Cash Flow and EBITDA
Cash flow from operating
activities, as of December
31st, 2022, increased by 1.4% year over year to
NT$ 75.94 billion, mainly due to
higher net income arising from our strong operating
performance.
Cash and cash equivalents, as of December
31st, 2022, increased by 26.2% to NT$ 50.21 billion as compared to that as of
December 31st, 2021.
EBITDA for the fourth quarter of 2022 was NT$ 20.85 billion, remained flat year over year.
EBITDA margin was 35.05%, as compared to 34.82% in the same period
of 2021.
EBITDA for 2022 increased by 3.5 % to NT$
86.27 billion, and EBITDA margin was 39.80%, compared to
39.59% for 2021.
Capital Expenditure ("Capex")
Total Capex for 2022
decreased by 10.7% to NT$ 31.53
billion.
Business Highlights
Mobile
As of December
31st, 2022, Chunghwa Telecom had 12.62 million
mobile subscribers, representing a 5.9% year-over-year increase. In
the fourth quarter, total mobile service revenue increased by 5.8%
to NT$ 15.68 billion, while mobile
post-paid ARPU excluding IoT SIMs grew 3.3% year over year to
NT$ 533.
Fixed Broadband/HiNet
As of December 31st, 2022, the number of
broadband subscribers slightly increased by 0.7% to 4.39 million.
The number of HiNet broadband subscribers increased by 1.4% to 3.66
million. In the fourth quarter, total fixed broadband revenue grew
3.7% year over year to NT$ 10.83
billion, while ARPU increased 2.1% to NT$ 771.
Fixed line
As of December
31st, 2022, the number of fixed-line subscribers
was 9.40 million.
(in NT$ billion)
|
2022
|
2021
|
YoY%
|
|
Oct.-Dec.
|
Jan.-Dec.
|
Oct.-Dec.
|
Jan.-Dec.
|
Oct.-Dec.
|
Jan.-Dec.
|
Revenue
|
59.50
|
216.74
|
59.89
|
210.48
|
-0.7
|
3.0
|
Operating costs and
expenses
|
48.63
|
169.99
|
48.42
|
165.18
|
0.4
|
2.9
|
Other income and
expense
|
1.0
|
0.09
|
-3.7
|
-3.7
|
126.8
|
125.0
|
Income from
Operations
|
10.97
|
46.84
|
11.10
|
44.93
|
-1.2
|
4.2
|
Income before Income
Tax
|
10.88
|
47.27
|
11.17
|
46.06
|
-2.7
|
2.6
|
Net income attributable
to stockholders of the parent
|
8.45
|
36.52
|
8.63
|
35.75
|
-2.2
|
2.1
|
EBITDA
|
20.85
|
86.27
|
20.85
|
83.33
|
0.0
|
3.5
|
EPS(NT$)
|
1.09
|
4.71
|
1.11
|
4.61
|
-2.2
|
2.1
|
2023 Guidance
For 2023, the Company expects total
revenue to increase by NT$ 4.53~NT$6.05 billion, or 2.1%~2.8%, to
NT$221.27~NT$222.79 billion as compared to the un-audited
consolidated total revenue of 2022. Operating costs and expenses
for 2023 are expected to increase by NT$ 6.60~NT$ 7.30 billion, or
3.9%~4.3%, to NT$176.59~NT$177.29 billion as compared to the prior
year. Income from operations is expected to decrease by NT$
0.85~NT$2.17 billion, or 1.8%~4.6% to NT$44.67~NT$45.99 billion,
year over year. Income before income tax and net income
attributable to stockholders of the parent are expected to be
NT$44.86~NT$46.58 billion and NT$34.55~NT$36.10 billion,
respectively. Basic earnings per share is expected to be
NT$4.45~NT$4.65.
Acquisition of Property, Plant and Equipment in 2023 is expected
to be NT$ 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.
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. 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
View original
content:https://www.prnewswire.com/news-releases/chunghwa-telecom-reports-un-audited-consolidated-operating-results-for-the-fourth-quarter-and-full-year-of-2022-301737186.html
SOURCE Chunghwa Telecom