TAIPEI, Taiwan, Jan. 27, 2016 /PRNewswire/ -- Chunghwa Telecom
Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company")
today reported its guidance for 2016 on a consolidated basis. All
figures were prepared in accordance with Taiwan-International
Financial Reporting Standards ("T-IFRSs").
Dr. Rick L. Tsai, Chairman and
CEO of Chunghwa Telecom stated, "We are pleased to report
impressive operating results for 2015. We will continue to strive
to further enhance our performance in future periods. Entering into
2016, we will continue focusing on 4G, value-added and ICT
services. We expect to add 2 million additional 4G subscribers and
expand our ICT business by leveraging our advantages as an
integrated telecom service provider. With our comprehensive network
infrastructure, marketing resources and R&D capacity, we are
confident that we will continue to maintain our leading market
position in all our major businesses and boost growth momentum in
2016."
For 2016, the Company expects total revenue to increase by
NT$1.70 billion, or 0.7%, to
NT$233.49 billion as compared to the
un-audited consolidated revenue for 2015. Expected increases in
revenue are due to the on-going growth of mobile Internet and
mobile value-added customers, expansion of the ICT business and
continual migration of fixed broadband customers. Increased revenue
contribution from these growing businesses is expected to offset
the projected decrease in voice service revenue attributed to VoIP
substitution and market competition.
Operating costs and expenses for 2016 are expected to increase
by NT$4.23 billion, or 2.3%, to
NT$185.53 billion as compared to the
prior year. Expenses associated with expanding mobile
Internet services, ICT projects and value-added services are
expected to increase. Amortization expenses primarily resulting
from the 4G license acquisition are also expected to increase.
Income from operations is expected to decrease by NT$ 2.64 billion, or 5.2%, year-over-year.
Non-operating income is expected to decrease by NT$0.51 billion year-over-year mainly due to
declines in investment income under the equity method and other
income. Income before income tax and net income attributable to
stockholders of the parent are expected to be NT$48.84 billion and NT$39.98 billion, respectively, representing
decreases of NT$3.15 billion and
NT$2.84 billion, respectively.
Earnings per share for 2016 is
expected to decrease by NT$0.37 to
NT$5.15, as compared to the prior year.
Acquisition for property, plant and equipment in 2016, including
the 2015 deferred projects, is expected to increase by NT$5.55 billion to NT$30.63 billion as compared
to the prior year. However, due to the Company's acquisition of the
2500MHz/2600MHz frequency band license at the cost of NT$9.96 billion in 2015, total spending in 2016
for acquisitions of material assets is expected to be NT$4.44 billion lower than that in
2015.
(NT$ billion except
EPS)
|
2016(F)
|
2015
(un-audited)
|
change
|
YoY
(%)
|
Revenue
|
233.49
|
231.79
|
1.70
|
0.7
|
Operating Costs and
Expenses
|
185.53
|
181.30
|
4.23
|
2.3
|
Other Income and
Expense
|
(0.21)
|
(0.10)
|
(0.11)
|
(96.1)
|
Income from
Operations
|
47.75
|
50.39
|
(2.64)
|
(5.2)
|
Non-operating
Income
|
1.09
|
1.60
|
(0.51)
|
(32.3)
|
Income before Income
Tax
|
48.84
|
51.99
|
(3.15)
|
(6.1)
|
Net Income
Attributable to
Stockholders of The Parent
|
39.98
|
42.82
|
(2.84)
|
(6.6)
|
EPS(NT$)
|
5.15
|
5.52
|
(0.37)
|
(6.6)
|
EBITDA
|
82.24
|
83.84
|
(1.60)
|
(1.9)
|
EBITDA
Margin
|
35.2%
|
36.2%
|
|
|
Acquisition of
Material Assets
|
30.63
|
35.07
|
(4.44)
|
(12.7)
|
Acquisition of
Property,
Plant and Equipment
|
30.63
|
25.08
|
5.55
|
22.1
|
Others
|
-
|
9.99
|
(9.99)
|
(100.0)
|
Disposal of Material
Assets
|
0.18
|
0.06
|
0.12
|
176.8
|
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
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/chunghwa-telecom-reports-2016-guidance-300210497.html
SOURCE Chunghwa Telecom Co., Ltd.