TAIPEI, Aug. 6, 2024 /PRNewswire/ — Chunghwa Telecom Co (NYSE:)., Ltd. (TAIEX: 2412, NYSE: CHT) (“Chunghwa” or “the Firm”) at present reported its un-audited working outcomes for the second quarter of 2024. All figures have been ready in accordance with Taiwan-Worldwide Monetary Reporting Requirements (“T-IFRSs”) on a consolidated foundation.
(Comparisons all through the press launch, except in any other case said, are made with regard to the prior 12 months interval.)
Second Quarter 2024 Monetary Highlights
- Whole income elevated by 1.2% to NT$ 54.12 billion.
- Client Enterprise Group income elevated by 2.6% to NT$ 33.60 billion.
- Enterprise Enterprise Group income decreased by 3.7% to NT$ 16.89 billion.
- Worldwide Enterprise Group income elevated by 21.8% to NT$ 2.64 billion.
- Whole working prices and bills elevated by 2.4% to NT$ 42.19 billion.
- Working earnings decreased by 2.7% to NT$ 11.93 billion.
- EBITDA decreased by 1.7% to NT$ 21.81 billion.
- Internet earnings attributable to stockholders of the dad or mum decreased by 1.0% to NT$ 9.82 billion.
- Fundamental earnings per share (EPS) was NT$1.27.
- Working earnings, EBITDA, web earnings attributable to stockholders of the dad or mum, and EPS all exceeded our proposed steering.
“The year-over-year enhancements within the second quarter underscored the power of our strategic execution and operational excellence,” said Mr. Shui-Yi Kuo, Chairman and CEO of Chunghwa Telecom. “Chunghwa Telecom is delivering industry-leading, best-in-class service to our prospects. Consequently, now we have proudly set a brand new report for complete income for a similar interval since 2018, rising our cell income market share and subscriber share within the new market panorama. Our postpaid cell ARPU has continued to outperform friends, demonstrating the best YoY development within the Taiwanese telecom {industry} for six consecutive quarters. Moreover, our mounted broadband service has seen a outstanding uptick because the variety of subscribers choosing companies of 300Mbps or greater continued to develop, leading to income enhance.”
“Concerning our three enterprise teams, the Client Enterprise Group sustained its development trajectory, primarily as a result of cell income development pushed by ongoing 5G migration and a rise in postpaid subscribers, in addition to mounted broadband income development. As a testomony of our profitable funding in media content material, we noticed our video platform subscriptions exceeded three million within the first week of broadcasting the Olympic Video games, additional increasing our lead within the {industry} as the most important video platform in Taiwan. Our Enterprise Enterprise Group’s income decreased because of the greater base from the massive ICT mission income acknowledged final 12 months, offset by elevated IDC and cybersecurity revenues this quarter. A noteworthy spotlight is the ten consecutive quarters of year-over-year development in our cybersecurity enterprise pushed by rising demand. Moreover, we’re impressed with the efficiency of our Worldwide Enterprise Group, the place income elevated by 21.8% year-over-year, primarily pushed by abroad ICT enterprise.”
“Concentrating on the huge AI alternatives, we constructed AI Information Facilities, GPU Cloud, and CHT AI Manufacturing facility. These efforts help enterprise and authorities purchasers in facilitating AI transformation. Moreover, to strategically improve our total group’s market worth, we centered on carving out subsidiaries for spin-offs and repeatedly evaluating potential M&A alternatives. Our subsidiary, CHT Safety and Worldwide Built-in Methods Inc., will full their itemizing on Taiwan’s Rising Inventory Market Board by the second half of 2024. Wanting forward, we stay assured that the constant execution of our methods will allow us to realize our long-term targets for superior worth creation for all our stakeholders,” Mr. Kuo concluded.
Income
Chunghwa Telecom’s complete revenues for the second quarter of 2024 elevated by 1.2% to NT$ 54.12 billion.
Client Enterprise Group’s income for the second quarter of 2024 elevated by 2.6% YoY to NT$ 33.60 billion. Cell service income elevated 3.8% YoY, primarily as a result of ongoing 5G migration and enhance in postpaid subscriber. Fastened broadband income continued to develop 12 months over 12 months owing to the profitable upsell of pace improve. Gross sales income elevated 2.4% YoY primarily because of the sturdy gross sales of iPhone collection. CBG’s earnings earlier than tax decreased 1.6% YoY, primarily because of the enhance of personnel bills ensuing from the corporate’s wage raises rolled out this 12 months
Enterprise Enterprise Group’s income for the second quarter of 2024 decreased 3.7% YoY to NT$ 16.89 billion, as a result of final 12 months’s excessive base from massive ICT initiatives and the deferral of income that was anticipated to be acknowledged within the second quarter. ICT enterprise income remained on monitor when excluding these elements. Cell service income barely decreased because of the greater base of pay as you go card mission in the identical interval of final 12 months, whereas 5G migration, worldwide roaming income and textual content message income continued to develop. Fastened-line income barely decreased year-over-year as a result of that the decline in mounted voice income offset the expansion of broadband entry income and knowledge communication income. This was the principle explanation for the 9.6% year-over-year lower in EBG’s earnings earlier than tax.
Worldwide Enterprise Group’s income for the second quarter of 2024 elevated by 21.8% to NT$ 2.64 billion, whereas its earnings earlier than tax elevated 8.2% YoY. The optimistic development was primarily as a result of abroad ICT enterprise development pushed by purchasers’ international growth.
Working Prices and Bills
Whole working prices and bills for the second quarter of 2024 elevated by 2.4% to NT$ 42.19 billion, primarily as a result of greater manpower price and electrical energy bills.
Working Revenue and Internet Revenue
Working earnings for the second quarter of 2024 decreased by 2.7% to NT$ 11.93 billion. The working margin was 22.0%, as in comparison with 22.9% in the identical interval of 2023. Internet earnings attributable to stockholders of the dad or mum decreased by 1.0% to NT$ 9.82 billion. Fundamental earnings per share was NT$1.27.
Money Move and EBITDA
Money stream from working actions, as of June 30th, 2024, elevated by 3.0% 12 months over 12 months to NT$ 29.32 billion, primarily as a result of an increase in unearned income from ICT initiatives.
Money and money equivalents, as of June 30th, 2024, decreased by 24.2% to NT$ 37.71 billion as in comparison with that as of June 30th, 2023.
EBITDA for the second quarter of 2024 was NT$ 21.81 billion, reducing by 1.7% 12 months over 12 months. EBITDA margin was 40.31%, as in comparison with 41.51% in the identical interval of 2023.
Enterprise Highlights
Cell
As of June 30th, 2024, Chunghwa Telecom had 13.42 million cell subscribers, representing a 4.5% year-over-year enhance. Within the second quarter, complete cell service income elevated by 3.5% to NT$ 16.73 billion, whereas cell post-paid ARPU excluding IoT SIMs grew 2.0% 12 months over 12 months to NT$ 556.
Fastened Broadband/HiNet
As of June 30th, 2024, the variety of broadband subscribers barely elevated by 0.6% to 4.41 million. The variety of HiNet broadband subscribers elevated by 1.3% to three.72 million. Within the second quarter, complete mounted broadband income grew 4.4% 12 months over 12 months to NT$ 11.39 billion, whereas ARPU elevated 2.0% to NT$ 790.
Fastened line
As of June 30th, 2024, the variety of fixed-line subscribers was 9.02 million.
Monetary Statements
Monetary statements and extra operational knowledge could be discovered on the Firm’s web site at http://www.cht.com.tw/en/house/cht/buyers/financials/quarterly-earnings
NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This press launch accommodates forward-looking statements. These statements represent “forward-looking” statements throughout the that means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended, and as outlined within the U.S. Non-public Securities Litigation Reform Act of 1995. These forward-looking statements could be recognized by terminology comparable to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and related statements. Statements that aren’t historic info, together with statements about Chunghwa’s beliefs and expectations, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties that would trigger precise outcomes to vary materially from the forward-looking statements. A lot of essential elements may trigger precise outcomes to vary materially from these contained in any forward-looking assertion. Traders are cautioned that precise occasions and outcomes may differ materially from these statements on account of quite a few elements together with, however not restricted to the dangers outlined in Chunghwa’s filings with the U.S. Securities and Alternate Fee on Kinds F-1, F-3, 6-Okay and 20-F, in every case as amended. The forward-looking statements on this press launch replicate the present perception of Chunghwa as of the date of this press launch and Chunghwa undertakes no obligation to replace these forward-looking statements for occasions or circumstances that happen subsequent to such date, besides as required underneath relevant regulation.
This press launch shouldn’t be a proposal of securities on the market in the US. Securities is probably not provided or offered in the US absent registration or an exemption from registration. Any public providing of securities to be made in the US might be made by the use of a prospectus which may be obtained from the issuer or promoting safety holder and that can comprise detailed details about the corporate and administration, in addition to monetary statements.
NON-GAAP FINANCIAL MEASURES
To complement the Firm’s consolidated monetary statements offered in accordance with Worldwide Monetary Reporting Requirements pursuant to the necessities of the Monetary Supervisory Fee, or T-IFRSs, Chunghwa Telecom additionally supplies EBITDA, which is a “non-GAAP monetary measure”. EBITDA is outlined as consolidated web earnings (loss) excluding (i) depreciation and amortization, (ii) complete web complete financing price (which is comprised of web curiosity expense, change acquire or loss, financial place acquire or loss and different financing prices and spinoff transactions), (iii) different earnings, web, (iv) earnings tax, (v) (earnings) loss from discontinued operations.
In managing the Firm’s enterprise, Chunghwa Telecom depends on EBITDA as a method of assessing its working efficiency as a result of it excludes the impact of (i) depreciation and amortization, which represents a non-cash cost to earnings, (ii) sure financing prices, that are considerably affected by exterior elements, together with rates of interest, international foreign money change charges and inflation charges, which have little or no bearing on our working efficiency, (iii) earnings tax (iv) different bills or earnings not associated to the operation of the enterprise.
CAUTIONS ON USE OF NON-GAAP FINANCIAL MEASURES
Along with the consolidated monetary outcomes ready underneath T-IFRSs, Chunghwa Telecom additionally present non-GAAP monetary measures, together with “EBITDA”. The Firm believes that the non-GAAP monetary measures present buyers with one other methodology for assessing its working ends in a way that’s centered on the efficiency of its ongoing operations.
Chunghwa Telecom’s administration believes buyers will profit from better transparency in referring to those non-GAAP monetary measures when assessing the Firm’s working outcomes, in addition to when forecasting and analyzing future intervals. Nevertheless, the Firm acknowledges that:
- these non-GAAP monetary measures are restricted of their usefulness and ought to be thought of solely as a complement to the Firm’s T-IFRSs monetary measures;
- these non-GAAP monetary measures shouldn’t be thought of in isolation from, or as an alternative choice to, the Firm’s T-IFRSs monetary measures;
- these non-GAAP monetary measures shouldn’t be thought of to be superior to the Firm’s T-IFRSs monetary measures; and
- these non-GAAP monetary measures weren’t ready in accordance with T-IFRSs and buyers mustn’t assume that the non-GAAP monetary measures offered on this earnings launch have been ready underneath a complete algorithm or precept.
Additional, these non-GAAP monetary measures could also be distinctive to Chunghwa Telecom, as they could be totally different from non-GAAP monetary measures utilized by different corporations. As such, this presentation of non-GAAP monetary measures could not improve the comparability of the Firm’s outcomes to the outcomes of different corporations. Readers are cautioned to not view non-GAAP outcomes as an alternative choice to outcomes underneath T-IFRSs, or as being similar to outcomes reported or forecasted by different corporations.
About Chunghwa Telecom
Chunghwa Telecom (TAIEX 2412, NYSE: CHT) (“Chunghwa” or “the Firm”) is Taiwan’s largest built-in telecommunications companies firm that gives fixed-line, cell, broadband, and web companies. The Firm additionally supplies data and communication expertise companies to company prospects with its massive knowledge, data safety, cloud computing and IDC capabilities, and is increasing its enterprise into modern expertise companies comparable to IoT, AI, and so forth. Chunghwa has been actively and repeatedly applied environmental, social and governance (ESG) initiatives with the objective to realize sustainability and has received quite a few worldwide and home awards and recognitions for its ESG commitments and greatest practices. For extra data, please go to our web site at www.cht.com.tw
Contact: Angela TsaiCellphone: +886 2 2344 5488
E mail: [email protected]
