TAIPEI, May 9, 2023
/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 2023. 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 2023 Financial Highlights
- Total revenue increased by 5.7% to NT$
54.21 billion.
- Consumer Business Group revenue increased by 4.1% to
NT$ 34.05 billion.
- Enterprise Business Group revenue increased by 8.2% to
NT$ 17.10 billion.
- International Business Group revenue increased by 24.3% to NT$ 2.13 billion.
- Total operating costs and expenses increased by 6.1% to
NT$ 42.04 billion.
- Operating income increased by 4.4% to NT$ 12.17 billion.
- EBITDA increased by 3.3% to NT$ 22.05
billion.
- Net income attributable to stockholders of the parent increased
by 6.4% to NT$ 9.64 billion.
- Basic earnings per share (EPS) was NT$1.24.
- Above mentioned financial indicators, including operating
income, EBITDA, and net income, all exceeded our proposed
guidance.
"Thanks to the outstanding work and dedication of the Chunghwa
team, the first quarter of 2023 started off strong as we beat all
financial forecasts amid a challenging macro environment. We
demonstrate vibrant growth in our three business groups, all of
which delivered positive YoY increases in both revenue and profit."
said Mr. Shui-Yi Kuo, Chairman, and
Chief Executive Officer of Chunghwa Telecom.
"Our mobile service revenue increased by 6.6% YoY, which
outperformed and led the industry, owing to the upselling resulting
from 5G migration and the increase of post-paid subscriber numbers.
Our revenue share exceeds our subscriber share by 2.9%, reflecting
a healthier subscriber structure. In addition, for our fixed
broadband business, we are delighted to announce the subscriber
number of 300Mbps and above has passed the 1 million threshold in
the first quarter."
"As for segment-level performance, the consumer business group
expanded in both revenue and profit mainly driven by the increase
of postpaid subscribers, steady 5G migration and stabilized iPhone
supply. Subscribers of Fixed-Broadband, Mobile, and Wi-Fi
altogether maintained growth momentum and Home Wi-Fi device
subscription numbers increased 1.5 times on a year-over-year basis.
Our enterprise business group maintained its growth trajectory
achieving an 8.2% year-over-year increase in revenue and a 3.7%
year-over-year increase in income before tax, mainly propelled by
the strong demand of the ICT business. We showed impressive growth
in emerging enterprise application revenue, particularly in 5G
private networks and big data services, which all doubled their
year-over-year revenue. Additionally, revenue from our cloud
service, IDC, and cyber security segments each experienced a more
than 30% year-over-year increase in the quarter. We are confident
about our strong growth potential and market scale in enterprise
sector. The top line of our international business group increased
by 24.3% year-over-year attributable to enlarging demands for the
international private leased circuit, IDC, and cloud services from
global clients."
"Chunghwa is well positioned to continue its lead going forward,
which is underpinned by our strong positions with leading market
shares, competitive technologies, and growing customer trust. We
believe these strengths will create both near- and long-term value
for stakeholders," Mr. Kuo concluded.
Revenue
Chunghwa Telecom's total revenues for the
first quarter of 2023 increased by 5.7% to NT$ 54.21 billion.
Consumer Business Group's income before tax for the first
quarter of 2023 increased 3.3% YoY, while revenue increased by 4.1%
to NT$ 34.05 billion. Mobile service
revenue increased 7.2% YoY, mainly due to increase in postpaid
subscriber growth and stable 5G migration. Fixed-line service
revenue was flat, while the fixed broadband revenue grew year over
year propelled by the successful upsell of speed upgrade and growth
of home Wi-Fi service. In addition, sales revenue increased 4.4%
YoY mainly due to the stabilized iPhone supply during the
quarter.
Enterprise Business Group's income before tax for the first
quarter of 2023 increased 3.7% YoY, while revenue increased by 8.2%
to NT$ 17.10 billion, mainly due to
strong ICT business growth, particularly in 5G private networks,
IDC, cloud, cyber security and big data services. Other revenue
increased by 32.6% year over year due to the recognition of ST-2
satellite compensation from the government. Mobile service business
revenue remained flat owing to the continued 5G migration and the
growth of international roaming revenue. Fixed-line revenue
decreased year-over-year, though digital transformation demand
continued to drive up data communication revenue and broadband
access revenue.
International Business Group's income before tax for the first
quarter of 2023 increased 13.3% YoY, while revenue increased by
24.3% to NT$ 2.13 billion, mainly
driven by emerging business revenue and fixed broadband revenue due
to strong demand of international private leased circuit, IDC and
cloud services from global clients.
Operating Costs and Expenses
Total operating costs
and expenses for the first quarter of 2023 increased by 6.1% to
NT$ 42.04 billion, mainly due to
higher ICT project cost and cost of goods sold.
Operating Income and Net Income
Income from operations
for the first quarter of 2023 increased by 4.4% to NT$ 12.17 billion. The operating margin was
22.5%, as compared to 22.7% in the same period of 2022. Net income
attributable to stockholders of the parent increased by 6.4% to
NT$ 9.64 billion. Basic earnings per
share was NT$1.24.
Cash Flow and EBITDA
Cash flow from operating
activities, as of March
31st, 2023, decreased by 5.2% year over year to
NT$ 11.21 billion, mainly due to the
settlement of salaries payable, and payments to suppliers and
maintenance contractors.
Cash and cash equivalents, as of March
31st, 2023, decreased by 16.7% to NT$ 38.72 billion as compared to that as of
March 31st, 2022.
EBITDA for the first quarter of 2023 was NT$ 22.05 billion, increasing by 3.3% year over
year. EBITDA margin was 40.68%, as compared to 41.61% in the same
period of 2022.
Business Highlights
Mobile
As of March
31st, 2023, Chunghwa Telecom had 12.71 million
mobile subscribers, representing a 6.1% year-over-year increase. In
the first quarter, total mobile service revenue increased by 6.6%
to NT$ 15.83 billion, while mobile
post-paid ARPU excluding IoT SIMs grew 4.0% year over year to
NT$ 536.
Fixed Broadband/HiNet
As of March 31st, 2023, the number of
broadband subscribers slightly increased by 0.6% to 4.38 million.
The number of HiNet broadband subscribers increased by 1.2% to 3.66
million. In the first quarter, total fixed broadband revenue grew
2.5% year over year to NT$ 10.77
billion, while ARPU increased 0.8% to NT$ 766.
Fixed line
As of March
31st, 2023, the number of fixed-line subscribers
was 9.33 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. 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