TAIPEI, Taiwan, Oct. 29, 2015 /PRNewswire/ -- Chunghwa Telecom
Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company")
today reported its un-audited operating results for the third
quarter of 2015. All figures were prepared in accordance with
Taiwan-International Financial Reporting Standards ("Taiwan-IFRSs")
on a consolidated basis.
(Comparisons throughout the press release, unless otherwise
stated, are made with regard to the prior year period)
Third Quarter 2015 Financial Highlights
- Total revenue increased by 0.1% to NT$56.18 billion
- Mobile communications revenue increased by 3.1% to NT$27.29 billion.
- Mobile value-added services (VAS) revenue increased by 12.1% to
NT$10.03 billion, with mobile
Internet revenue, the largest contributor to VAS revenue,
increasing by 17.4%
- Internet revenue decreased by 6.6% to NT$6.42 billion
- Domestic fixed communications revenue decreased by 0.9% to
NT$17.91 billion
- International fixed communications revenue decreased by 0.8% to
NT$3.81 billion
- Total operating costs and expenses decreased by 6.4% to
NT$42.09 billion
- Net income attributable to stockholders of the parent increased
by 21.3% to NT$11.80 billion
- Basic earnings per share (EPS) was NT$1.52
Dr. Rick L. Tsai, Chairman and
CEO of Chunghwa Telecom commented, "In the third quarter, we
maintained our strong momentum, with total revenues, operating
income, and EPS all increasing year over year and outperforming our
guidance. Supported by our successful promotional packages, our 4G
subscriber base reached 3.56 million by the end of September, and
we expect that figure to continue on its upward trajectory and
exceed 4.2 million by year-end. The iPhone 6s' launch earlier this
month supports our top-line growth and mobile subscriber expansion;
however it also increases related expenses. Despite this expected
margin impact, we remain confident in outperforming our full-year
guidance."
Dr. Tsai continued, "We are currently evaluating the technology
and investment efficiency for the 2.6G spectrum in advance of the
auction expected to begin in November. In doing so, we hope
to acquire the band which most benefits our operation and enable us
to offload heavy traffic in metropolitan areas, further supporting
our market-leading mobile network capabilities. Going forward, we
will continue to focus on improving our network capability and
customer satisfaction by strengthening customer service, offering
affordable and integrated packages and increasing the speed and
reliability of our network."
Revenue
Chunghwa Telecom's total revenues for the third quarter of 2015
increased by 0.1% to NT$56.18
billion, which was comprised of 48.6% mobile, 11.4%
internet, 31.9% domestic fixed, 6.8% international fixed, and 1.3%
from other businesses.
Mobile communications revenue for the third quarter 2015
increased by 3.1% to NT$27.29
billion. This was mainly due to the continual growth of
mobile VAS revenues, which was partially offset by the decrease in
mobile voice revenue and device sales.
Internet business revenue for the third quarter of 2015
decreased by 6.6% year-over-year to NT$6.42
billion. The decrease was primarily attributable to lower
ICT project revenue.
Domestic fixed revenue for the third quarter of 2015 decreased
by 0.9% year-over-year to NT$17.91
billion, mainly due to the decrease of fixed voice revenue
which offset the growth of ICT project revenue.
Broadband access revenue increased by 1.0% to NT$4.81 billion. Local and DLD service revenue
decreased by 5.4% and 5.1% to NT$8.50
billion and NT$0.80 billion,
respectively, mainly due to increased mobile and VoIP substitution.
International fixed revenue decreased by 0.8% to NT$3.81 billion.
Operating Costs and Expenses
Total operating costs and expenses for the third quarter of 2015
decreased 6.4% to NT$42.09 billion.
The decrease was primarily due to the lower costs of goods sold and
the decrease in interconnection and depreciation expenses.
Income Tax
Income tax expense for the third quarter of 2015 increased 20.2%
year over year to 2.26 billion.
Operating Income and Net Income
Income from operations for the third quarter of 2015 increased
by 25.7% to NT$14.04 billion. The
operating margin was 25.0%, compared to 19.9% in the same period of
2014. Net income attributable to stockholders of the parent
increased by 21.3% to NT$11.80
billion and basic earnings per share increased to
NT$1.52.
Cash Flow and EBITDA
Cash inflow from operating activities for the third quarter of
2015 decreased by 5.8% to NT$17.34
billion. Cash and cash equivalents as of September 30th, 2015 increased by
154.2% year-over-year to NT$20.59
billion.
EBITDA for the third quarter of 2015 increased by 12.8% to
NT$22.3 billion. EBITDA margin
increased to 39.7% compared from 35.2% in the same period of
2014.
Capital Expenditure ("Capex")
Total Capex for the third quarter of 2015 decreased by 34.6% to
NT$5.15 billion, and was comprised of
37.8% domestic fixed communications, 37.7% mobile communications,
16.6% Internet, 6.0% international fixed communications, and 2.2%
from others.
Business and Operational Highlights
Broadband/HiNet
The Company continued to execute its strategy of encouraging
FTTx migration. As of September
30th, 2015, the number of FTTx subscribers
reached 3.30 million, accounting for 73.3% of the Company's total
broadband users. Moreover, the number of subscribers signing up for
speeds of 100Mbps or higher increased by 35.6%, reaching 1.02
million. HiNet broadband subscribers totaled 3.77 million as of
September 30th, 2015.
Mobile
As of September 30th,
2015, Chunghwa had 11.25 million mobile subscribers, representing a
1.8% year-over-year increase. The Company also had 5.73 million
mobile Internet subscribers, representing a 17.1% year-over-year
increase.
Fixed-line
As of September 30th,
2015, the Company maintained its leading position in the fixed-line
market, with a total of 11.22 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/ir/stockit-earningsit.html.
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) 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 and is
expanding its cloud computing services. 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: Fu-fu Shen
Phone: +886 2 2344 5488
Email: chtir@cht.com.tw
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SOURCE Chunghwa Telecom Co., Ltd.