TAIPEI, Taiwan, R.O.C.,
Jan. 25, 2022 /PRNewswire/ --
Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or
"the Company") today reported its guidance for 2022 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: "In 2022, Chunghwa will focus on
'sustainability + 5G + transformation' as our core strategy. By
actively promoting the sustainable development of ESG initiatives,
we expect to catch new business opportunities in areas such as 5G
and 5G private networks, Taiwan's
Forward-looking Infrastructure Development Program 2.0,
post-pandemic services and smart applications, among others. We set
the strategic goal of achieving 'revenue and profit dual growth'
and initiate the re-organization of three business groups –
'Consumer, Enterprise and International Business Groups' – and
three technology groups – 'network technology group, data
communications group and Telecommunication Laboratories'. By
strengthening customer service and re-investment operations, we
will enhance the Company's competitive advantage and focus on
high-quality projects to achieve better business performance and to
realize the 'customer-centric value creation'".
"In response to new market competition in the telecommunications
industry of Taiwan, the Company
will continue to actively build 5G networks to maintain our leading
position in domestic 5G network speed and coverage. Simultaneously,
Chunghwa will accelerate the expansion of its 5G enterprise private
network and develop 5G smart applications alongside enterprise
partners to increase mobile business revenue and drive the growth
of our ICT businesses. Driven by high-quality broadband services
with speed upgrade and triple-play integration strategies, Chunghwa
expects to continue increasing ARPU and to achieve revenue growth.
In terms of video services, we will increase investment in MOD
content and include popular sports events such as the 2022 Winter
Olympics and the 2022 FIFA World Cup in our service offerings to
further increase customer numbers and ARPU, driving the overall
revenue growth of MOD and Hami Video. "
"In the foreseeable future, Chunghwa Telecom will fully support
the government's pandemic prevention measures and endeavor to
implement more sustainable initiatives such as green energy. The
Company will also endeavor to take the business opportunities such
as ESG sustainability, 5G, on-line, zero-contact services, and
digital transformation, by investing more in developing emerging
businesses and enhancing the strategic synergy of the Group. With a
focus on the value maximization to our shareholders, our clients,
our society and our employees, we are devoted to achieve our vision
of 'By ensuring the ESG sustainable development, to become a leader
in smart life and an enabler in digital economy.'"
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$214.00 billion
as compared to the unaudited
consolidated total revenue of 2021. The increase in revenue is
expected to be driven by increases in mobile communications
revenue, broadband access revenue, data communications revenue and
MOD revenue, as well as revenue coming from the expansion of
emerging business in the digital economy.
Operating costs and expenses for 2022 are expected to increase
by NT$ 3.24~NT$3.63 billion, or 2.0%~2.2%, to NT$168.42~NT$168.81
billion as compared to the prior year. The increase is mainly from
the increase of ICT project costs and maintenance expenses.
Income from operations is expected to decrease by NT$ 0.38 billion, to an increase by NT$ 1.15 billion, or -0.8%~2.6%, year over year.
Income before income tax, net income attributable to stockholders
of the parent and net earnings per share are expected to be
NT$44.58~NT$46.83 billion, NT$34.11~NT$36.04 billion and
NT$4.40~NT$4.65, respectively, representing a decrease of
NT$1.48 billion to an increase of
NT$0.77 billion, a decrease of
NT$1.64 billion to an increase of
NT$0.29 billion and a decrease of
NT$0.21 to an increase of
NT$0.04 respectively, year over
year.
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.
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