TAIPEI, May 3, 2022 /PRNewswire/ -- Chunghwa Telecom Co.,
Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today
reported its un-audited operating results for the first 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.)
First Quarter 2022 Financial Highlights
- Total revenue increased by 2.4% to NT$
51.29 billion.
- Consumer Business Group revenue increased by 2.2% to
NT$ 32.72 billion.
- Enterprise Business Group revenue increased by 2.1% to
NT$ 15.81 billion.
- International Business Group revenue increased by 13.8% to
NT$ 1.71 billion.
- Total operating costs and expenses increased by 1.7% to
NT$ 39.68 billion.
- Net income attributable to stockholders of the parent increased
by 2.5% to NT$ 9.02 billion.
- Basic earnings per share (EPS) was NT$1.16.
"Chunghwa had a remarkable first quarter, as we achieved strong
performance under our new corporate structure, despite facing
challenges of new COVID strains as well as intense global and macro
factors," said Mr. Chi-Mau Shieh,
Chairman and Chief Executive Officer of Chunghwa Telecom.
"Strong demand across diverse end markets, combined with
Chunghwa's strong innovative engine, broad market access, and
sharpened execution, allowed us to deliver solid results within our
guidance range in this quarter. For mobile services, both mobile
revenue market share and mobile subscriber market share maintained
their leading positions. Mobile post-paid ARPU excluding IoT SIMs
increased by 3.2% year over year, driven by steady 5G penetration,
while we observed an average 35% uplift in monthly fees,
attributable to customers who renewed contracts to adopt 5G
services. In addition, both our fixed broadband subscriber number
and HiNet subscriber number continued to grow year-over-year,
reflecting our leading market share."
"As for segment details, driven by strong demand and digital
opportunities, the consumer business group continued to grow. We
launched Triple-Play (Fixed-Broadband + Mobile + Wi-Fi) program in
the first quarter to attract more subscribers, and Home Wi-Fi
device sign-ups grew by 29% year-over-year. In the enterprise
business group, revenues of mobile ICT, IDC and cybersecurity
revenues reached double-digit growth this quarter. 5G enterprise
private network revenue tripled its growth as well. We are pleased
to see the success of our international business this quarter, as
revenue increased by 13.8% year-over-year due to increasing demand
of IDC, cloud and ICT services offering for global clients."
"This year marked a new era for Chunghwa, and we believe the
Company's long-term opportunities remain unchanged as the world's
digital transformation accelerates. We will continue to enhance our
product and service offerings and remain confident that our
business performance will continue to develop and grow," Mr. Shieh
concluded.
Revenue
Chunghwa Telecom's total revenues for the first quarter of 2022
increased by 2.4% to NT$ 51.29
billion.
Consumer Business Group revenue for the first quarter of 2022
increased by 2.2% to NT$ 32.72
billion, mainly due to a 4.9% YoY increase of mobile service
revenue driven by postpaid subscriber growth and 5G migration.
Fixed-line service revenue increased 2.0% YoY owing to higher-speed
service adoption amid continued stay-at-home economy. Sales revenue
decreased 1.5% YoY resulted from unstable handset supply under
COVID-19.
Enterprise Business Group revenue for the first quarter of 2022
increased by 2.1% to NT$ 15.81
billion, mainly due to mobile and fixed-line service revenue
increased respectively by 7.1% and 0.3%. ICT business revenue
decrease 7.2% YoY resulted from the revenue recognition delay of
some projects, though we are positive to the full-year
performance.
International Business Group revenue for the first quarter of
2022 increased by 13.8% to NT$ 1.71
billion, mainly due to the increase of ICT
revenue.
Operating Costs and Expenses
Total operating costs and expenses for the first quarter of 2022
increased by 1.7% year over year to NT$
39.68 billion, mainly due to higher personnel expenses
and depreciation expense.
Operating Income and Net Income
Income from operations for the first quarter of 2022 increased
by 4.6% to NT$ 11.61 billion, mainly
due to the continued growth of profitable core business, as well as
the increased gross profits and gross margins of ICT projects of
parent company. The operating margin was 22.6%, as compared to
22.2% in the same period of 2021. Net income attributable to
stockholders of the parent increased by 2.5% to NT$ 9.02 billion. Basic earnings per share was
NT$1.16.
Cash Flow and EBITDA
Cash flow from operating activities for the first quarter of
2022 increased by 19.8% year over year to NT$ 11.84 billion, mainly due to an increase of
pretax income.
Cash and cash equivalents, as of March
31st, 2022, increased by 16.9% to NT$ 46.51 billion as compared to that as of
December 31st, 2021. The
increase was primarily attributable to the issuance of corporate
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 first quarter of 2022 increased by 3.5% to
NT$ 21.29 billion. EBITDA margin was
41.51%, as compared to 41.08% in the same period of 2021.
Business Highlights
Mobile
As of March 31st,
2022, Chunghwa Telecom had 11.98 million mobile subscribers,
representing a 5.3% year-over-year increase. Total mobile service
revenue increased by 4.9% to NT$ 14.84
billion, while mobile post-paid ARPU excluding IoT SIMs grew
3.2% year over year to NT$ 515.
Fixed Broadband/HiNet
As of March 31st, 2022,
the number of broadband subscribers slightly increased by 0.3% to
4.35 million. The number of HiNet broadband subscribers increased
by 1.1% to 3.62 million. Total fixed broadband revenue grew 4.4%
year over year to NT$ 10.51 billion,
while ARPU increased 3.5% to NT$
760.
Fixed line
As of March 31st, 2022,
the Company maintained its leading position in the fixed-line
market, with a total of 9.59 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