Chunghwa Telecom Reports Operating Results for 2006
28 3월 2007 - 3:40PM
PR Newswire (US)
Continued Growth Amid Intense Competition TAIPEI, Taiwan, March 28
/Xinhua-PRNewswire-FirstCall/ -- Chunghwa Telecom Co., Ltd (TAIEX:
2412; NYSE: CHT) ("Chunghwa" or "the Company"), today reported its
operating results for the fourth quarter and full fiscal year 2006.
All figures were prepared in accordance with US GAAP. Financial
Highlights for Fiscal 2006: -- Total revenue increased 0.9% to
NT$186.34 billion -- Internet and data revenue increased 9.9% to
NT$46.33 billion -- Mobile revenue was NT$73.02 billion, in line
with the 2005 level -- Net income totaled NT$42.07 billion, an
increase of 26.3% -- Earnings per share (EPS) were NT$4.34, or
NT$43.43 per ADS -- Net cash flow from operations increased 16.2%
to NT$100.15 billion Financial Highlights for 4Q06: -- Total
revenue increased 2.8% to NT$47.55 billion -- Internet and data
revenue rose 9.5% to NT$12.11 billion -- Mobile revenue was
NT$18.15 billion, a decrease of 1.5% -- Net income totaled NT$11.16
billion, an increase of 524.3% -- Earnings per share (EPS) were
NT$1.15, or NT$11.54 per ADS -- Net cash flow from operations
increased 5.9% to NT$31.68 billion Revenues Total revenues for
fiscal year 2006 grew year-over-year by 0.9% to NT$186.34 billion,
of which 33.8% was from fixed-line services, 39.2% was from mobile
services and 24.9% was from Internet and data services. Total
revenue growth can mainly be attributed to an increased proportion
of revenues from the Internet and data business, which was led by
sustainable broadband subscriber growth and continuous migration of
broadband customers towards higher-speed services. Mobile revenue
remained flat in 2006. Declining fixed-to-mobile traffic, tariff
reductions for mobile-to-fixed calls, and an increased amount of
promotional packages were offset by 3.4% increase in usage minutes
and 30% revenue growth from mobile VAS. Fixed-line revenues
declined by 5.0%, the result of a 4.3% local revenue decrease due
to mobile and broadband substitution, a 9.7% domestic long distance
revenue decrease due to mobile substitution and VoIP, as well as an
International long distance revenue decline of 3.7% from the impact
of increasing wholesale minutes compared to total ILD minutes on
unit price. For the fourth quarter of 2006, total revenues were
NT$47.55 billion, a 2.8% increase over the same period last year.
Of this, 33.3% was from fixed- line services, 38.2% was from mobile
services and 25.5% was from Internet and data services. The
continued revenue growth was mainly driven by increased Internet
and data business and contribution of other services, particularly
corporate solution business. Costs and expenses For fiscal 2006,
total operating costs and expenses decreased year-over- year by
6.8% to NT$130.05 billion, mainly due to the exclusion of the
one-time NT$10.98 billion compensation cost charge connected to the
employee stock subscription program that was part of the Company's
August 2005 privatization. Moreover, depreciation and amortization
costs began to decrease in 2006 due to effective capital
expenditure control over the last five years, and the trend is
expected to continue. Nevertheless, this was partially offset by an
increase in handset subsidies of NT$1.25 billion, the additional
NT$2.31 billion expense associated with the Early Retirement
Program (ERP), and employee bonuses. The headcount reduction is
expected to benefit our future operations. Total operating costs
and expenses for the fourth quarter of 2006 of NT$33.79 billion
fell 25.4% compared to same period in 2005, reflecting the
decreased compensation costs related to the employee stock
subscription program. EBITDA and net income EBITDA for fiscal 2006
increased 12.3% to NT$96.95 billion and the EBITDA margin was
52.0%. Net income for 2006 was NT$42.07 billion; the 26.3% increase
can be attributed to a combination of increased total revenues and
a decrease in compensation costs related to the employee stock
subscription program, and represents a net income margin of 22.6%
compared to 18.0% in 2005. For the fourth quarter of 2006, EBITDA
increased by 110.7% to NT$23.90 billion and the EBITDA margin was
50.2%. Net income increased by 524.3% to NT$11.16 billion. The
significant EBITDA and net income increases were due to the lower
level of compensation costs recognized in connection to the
employee stock subscription program compared to the same period of
last year. Capex Capital expenditures totaled NT$27.68 billon for
the full year, representing 14.9% of total revenues. Cash Flows Net
cash flow from operations grew strongly, increasing 16.2% to
NT$100.15 billion during the year ending December 31, 2006,
compared to NT$86.17 billion for 2005. As of December 31, 2006, the
Company's cash and cash equivalents totaled NT$70.67 billion.
Businesses Performance Highlights Internet and Data Services --
Chunghwa added 192,000 new HiNet subscribers over the last twelve
months to bring the total number of Internet subscriptions to 4.30
million at the end of December 2006, a solid increase from 4.11
million a year earlier. -- Broadband subscribers, including ADSL
and FTTB subscribers, increased to 4.04 million at the end of
December 2006. 197,000 new ADSL subscribers and 165,000 new FTTB
subscribers were added during the year. -- The data business
continued to grow, and was up 6.6% primarily due to increased
leased line revenue and the contribution from Chief Telecom
recognized in the fourth quarter of 2006. Mobile Services -- At the
end of December 2006, Chunghwa had 8.49 million mobile subscribers,
up 4.0% from the previous year. -- Chunghwa remained the leading
mobile operator in Taiwan for 2006, both in terms of 2G revenue and
2G subscriber market share, with 35.7% and 40.9% respectively. --
Chunghwa added 646,000 3G subscribers in fiscal 2006, which brought
the total to 943,000. At the end of year 2006, 3G ARPU was 31%
higher than that of 2G. -- Mobile VAS revenue for 2006 represented
5.7% of total mobile revenue, compared to 4.4% in 2005. For the
fourth quarter of 2006, mobile VAS revenue as a percentage of total
mobile revenue increased to over 6.0%. Fixed-line Services -- As of
the end of December 2006, Chunghwa maintained its market leading
fixed-line market position, with fixed-line subscribers totaling
13.12 million, slightly down by 1.0% compared to 2005. The
Company's market shares for local, DLD and ILD remained flat
through 2006. Other -- Chunghwa added 150,000 MOD subscribers in
fiscal 2006, which brought the total to 249,000. Financial
Statements Financial statements and additional operational data can
be found on the Chunghwa Telecom website at
http://www.cht.com.tw/ir/filedownload . About Chunghwa Telecom
Chunghwa Telecom (TAIEX: 2412; NYSE: CHT) is the leading telecom
service provider in Taiwan. Chunghwa Telecom provides fixed-line,
mobile and Internet and data services to residential and business
customers in Taiwan. Note Concerning Forward-looking Statements
Except for statements in respect of historical matters, the
statements made in this presentation contain "forward-looking
statements" within the meaning of Section 27A of the U.S.
Securities Act of 1933 and Section 21E of the U.S. Securities
Exchange Act of 1934. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
the actual performance, financial condition or results of
operations of Chunghwa Telecom to be materially different from what
may be implied by such forward-looking statements. Investors are
cautioned that actual events and results could differ materially
from those statements as a result of a number of factors including,
among other things: extensive regulation of telecom industry; the
intensely competitive telecom industry; our relationship with our
labor union; general economic and political conditions, including
those related to the telecom industry; possible disruptions in
commercial activities caused by natural and human induced events
and disasters, including terrorist activity, armed conflict and
highly contagious diseases, such as SARS; and those risks
identified in the section entitled "Risk Factors" in Chunghwa
Telecom's Form F-1 and F-3 filed with the U.S. Securities and
Exchange Commission in connection with our ADR public offering. The
financial statements included in this presentation were prepared
and published in accordance with US GAAP. Investors are cautioned
that there are many differences between US GAAP and ROC GAAP. As a
result, our results under U.S. GAAP and ROC GAAP may in many events
be substantially different. The forward-looking statements in this
press release reflect the current belief of Chunghwa Telecom as of
the date of this press release and we undertake no obligation to
update these forward-looking statements for events or circumstances
that occur subsequent to such date. For inquiries: Fu-fu Shen
Investor Relations Tel: +886-2-2344-5488 Email: DATASOURCE:
Chunghwa Telecom CONTACT: Fu-fu Shen of Chunghwa Telecom ,
+886-2-2344-5488, Web site: http://www.cht.com.tw/
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