TAIPEI, May 4, 2021 /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
2021. 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 2021 Financial Highlights
- Total revenue increased by 4.1% to NT$
50.10 billion.
- Mobile communications revenue increased by 4.0% to NT$ 23.44 billion.
- Internet revenue increased by 1.6% to NT$ 7.63 billion.
- Domestic fixed communications revenue increased by 4.8% to
NT$ 15.40 billion.
- International fixed communications revenue decreased by 2.9% to
NT$ 2.17 billion.
- Total operating costs and expenses increased by 3.7% to
NT$ 39.00 billion.
- Net income attributable to stockholders of the parent increased
by 6.4% to NT$ 8.82 billion.
- Basic earnings per share (EPS) was NT$1.14.
"Our achievements this quarter mark an excellent start to 2021
with solid operational and financial performance," said Mr.
Chi-Mau Sheih, Chairman and CEO of
Chunghwa Telecom. "Over a year since the COVID-19 outbreak, I am
proud of Chunghwa's response during this period and remain grateful
for our shareholders as we continue to navigate the pandemic
aftermath and strengthen our business as a whole."
"We are pleased to report stable financial and operating results
in the first quarter of 2021. Our operating income, net income and
EPS, all outperformed our guidance during the quarter, primarily
driven by our strong execution upon our growth strategy of
enhancing profitability. In particular, we maintained our leading
market position in the mobile business sector in terms of
subscriber and revenue. We continued to excel in growing numbers of
high-priced 5G sign-ups as well as total 5G sign-ups, which has
exceeded our internal target of the quarter. In addition, we
accumulated more than 6,300 base stations this quarter and remain
ahead of our 5G network construction schedule. Given the
significant progress in 5G adoption and development, we remain
optimistic and expect year-over-year growth of our mobile service
revenue for the remainder of this year."
"As Chunghwa benefited from stay-at-home opportunities in 'the
new normal', we are delighted to
see an increase in both our broadband ARPU and subscriber migration
to higher-speed broadband services. Similarly, the number of Home
Wi-Fi devices also increased 352% year-over-year, supporting the
popularity of our home-centric applications. Moreover, our MOD/IPTV
platform remains the largest video platform in Taiwan. As we continued to roll out popular
packages to enhance overall performance, we are pleased to see
upsell in both SVOD services and channel services. In addition, we
will increase our investment in overall ICT technology capabilities
and people as we see ongoing ICT revenue increase year-over-year
and continue to pursue growth. Going forward, we will continue to
strengthen our network, core business, and overall capabilities, as
we strive to better serve our customers and position ourselves to
deliver success in 2021 and beyond."
Revenue
Chunghwa Telecom's total revenues for the first quarter of 2021
increased by 4.1% to NT$ 50.10
billion.
Mobile communications revenue for the first quarter of 2021
increased by 4.0% to NT$ 23.44
billion. This was mainly due to the increase in handset
sales revenue, which was offset by the decrease in mobile service
revenue resulted from the impact of COVID-19 and VoIP
substitution.
Internet business revenue for the first quarter of 2021
increased by 1.6% year over year to NT$ 7.63
billion.
Domestic fixed revenue for the first quarter of 2021 increased
by 4.8% year over year to NT$ 15.40
billion, mainly due to the increase of ICT project revenue,
which was offset by the decrease of local and DLD service revenue
primarily driven by the increased mobile and VoIP substitution.
International fixed communications revenue decreased by 2.9% to
NT$ 2.17 billion.
Operating Costs and Expenses
Total operating costs and expenses for the first quarter of 2021
increased by 3.7% year over year to NT$
38.99 billion, mainly due to higher ICT project costs
and cost of goods sold.
Operating Income and Net Income
Income from operations for the first quarter of 2021 increased
by 5.5% to NT$ 11.11 billion. The
operating margin was 22.2%, as compared to 21.9% in the same period
of 2020. Net income attributable to stockholders of the parent
increased by 6.4% to NT$ 8.82
billion. Basic earnings per share was NT$1.14.
Cash Flow and EBITDA
Cash flow from operating activities for the first quarter of
2021 decreased by 25.8% year over year to NT$ 9.88 billion, mainly due to a decrease of
accounts payable and an increase of accounts receivable.
Cash and cash equivalents, as of March
31st, 2021, increased by 81.4% to NT$ 30.06 billion as compared to that as of
March 31st, 2020. The
increase was primarily attributable to the issuance of corporate
bonds.
EBITDA for the first quarter of 2021 increased by 6.4% to
NT$ 20.58 billion. EBITDA margin was
41.09%, as compared to 40.18% in the same period of 2020.
Business and Operational Highlights
Broadband/HiNet
The Company continued to execute its strategy of encouraging
FTTx migration. As of March
31st, 2021, the number of FTTx subscribers
reached 3.62 million, accounting for 83.5% of the Company's total
broadband users. Moreover, the number of subscribers signing up for
speeds of 100Mbps or higher increased by 10.9% year over year,
reaching 1.80 million, while the number of subscribers signing up
for speeds of 300Mbps or higher increased by 58% year over
year.
HiNet broadband subscribers decreased by 0.9% year over year to
3.58 million as of March
31st, 2021.
Mobile
As of March 31st,
2021, Chunghwa Telecom had 11.38 million mobile subscribers,
representing a 3.3% year-over-year increase.
Fixed line
As of March 31st, 2021,
the Company maintained its leading position in the fixed-line
market, with a total of 9.84 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
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SOURCE Chunghwa Telecom