TAIPEI, Nov. 1, 2021 /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 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.)
Third Quarter 2021 Financial Highlights
- Total revenue decreased by 2.5% to NT$
50.89 billion.
- Mobile communications revenue increased by 5.6% to NT$ 22.84 billion.
- Internet revenue increased by 11.0% to NT$ 8.28 billion.
- Domestic fixed communications revenue decreased by 16.9% to
NT$ 15.66 billion.
- International fixed communications revenue decreased by 1.5% to
NT$ 2.11 billion.
- Total operating costs and expenses decreased by 5.5% to
NT$ 39.44 billion.
- Net income attributable to stockholders of the parent increased
by 12.8% to NT$ 9.40 billion.
- Basic earnings per share (EPS) was NT$1.21.
"We are pleased to see our products and services have been
featured in even greater spotlights during the third quarter," said
Mr. Chi-Mau Sheih, Chairman, and CEO
of Chunghwa Telecom. "In the mobile business, post-paid subscriber
number and mobile service revenue continued to increase year over
year to sustain ARPU growth. The launch of the iPhone 13 series
late in the third quarter further increased the number of 5G
subscribers and higher price plan adoption. We remain dedicated to
providing our clients with excellent connection and experiences.
Currently, we have more than 10,000 5G base stations operating and
expect to meet our guidance of 12,000 base stations by end of
year."
"In addition, we are also delighted to see the 'work from
anywhere' trend continued to enhance the growth of our broadband
business as the number of 300Mbps and higher subscribers increased
by 48% year-over-year. Our MOD business continued to achieve good
performance as a result of our proper pricing strategy and the
success of the broadcasting of the Tokyo Olympic Games. For ICT
business, we are pleased to see ICT project margin growth on a year
over year basis and will continue to leverage our ICT technology
capabilities to cater to more emerging digital opportunities."
Mr. Sheih concluded, "Going forward, we will strive to maintain
the upward trend of revenue and ARPU in every business segment and
upgrade our products and services to satisfy our customers. To
respond to the ESG requirement, we will also carry out ESG
practices to pursue sustainable corporate growth."
Revenue
Chunghwa Telecom's total revenues for the third quarter of 2021
decreased by 2.5% to NT$ 50.89
billion.
Mobile communications revenue for the third quarter of 2021
increased by 5.6% to NT$ 22.84
billion. This was mainly due to the increase in handset
sales revenue as well as mobile service revenue.
Internet business revenue for the third quarter of 2021
increased by 11.0% year over year to NT$
8.28 billion.
Domestic fixed revenue for the third quarter of 2021 decreased
by 16.9% year over year to NT$ 15.66
billion, mainly due to the decrease of ICT project revenues,
which was offset by the increase of broadband access revenue.
International fixed communications revenue decreased by 1.5% to
NT$ 2.11 billion.
Operating Costs and Expenses
Total operating costs and expenses for the third quarter of 2021
decreased by 5.5 % year over year to NT$
39.44 billion, mainly due to lower ICT project cost and
lower concession fees.
Operating Income and Net Income
Income from operations for the third quarter of 2021 increased
by 6.7 % to NT$ 11.44 billion. The
operating margin was 22.5 %, as compared to 20.6 % in the same
period of 2020. Net income attributable to stockholders of the
parent increased by 12.8% to NT$ 9.40
billion. Basic earnings per share was NT$1.21.
Cash Flow and EBITDA
Cash flow from operating activities for the third quarter of
2021 increased by 4.2 % year over year to NT$ 21.29 billion, mainly due to an increase of
pre-tax income.
Cash and cash equivalents, as of September 30th, 2021, increased by
33.2 % to NT$ 23.59 billion as
compared to that as of September
30th, 2020. The increase was primarily
attributable to the issuance of corporate bonds.
EBITDA for the third quarter of 2021 increased by 4.8 % to
NT$ 21.06 billion. EBITDA margin was
41.40%, as compared to 38.51% 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 September
30th, 2021, the number of FTTx subscribers
reached 3.68 million, accounting for 84.4% of the Company's total
broadband users. Moreover, the number of subscribers signing up for
speeds of 100Mbps or higher increased by 13.0% year over year,
reaching 1.94 million, while the number of subscribers signing up
for speeds of 300Mbps or higher increased by 48.0% year over
year.
HiNet broadband subscribers increased by 0.5% year over year to
3.62 million as of September
30th, 2021.
Mobile
As of September 30th,
2021, Chunghwa Telecom had 11.74 million mobile subscribers,
representing a 4.1 % year-over-year increase.
Fixed line
As of September 30th,
2021, the Company maintained its leading position in the fixed-line
market, with a total of 9.73 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