Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (“Chunghwa” or “the Company”) announced today its un-audited operating results for Q2 2024, prepared in accordance with Taiwan-International Financial Reporting Standards (T-IFRSs) on a consolidated basis. Unless otherwise stated, comparisons throughout the press release are made with the prior year period.
Q2 2024 Financial Highlights
- Total Revenue: Increased by 1.2% to NT$54.12 billion.
- Consumer Business Group Revenue: Rose by 2.6% to NT$33.60 billion.
- Enterprise Business Group Revenue: Fell by 3.7% to NT$16.89 billion.
- International Business Group Revenue: Surged by 21.8% to NT$2.64 billion.
- Total Operating Costs and Expenses: Climbed by 2.4% to NT$42.19 billion.
- Operating Income: Dropped by 2.7% to NT$11.93 billion.
- EBITDA: Declined by 1.7% to NT$21.81 billion.
- Net Income Attributable to Stockholders: Decreased by 1.0% to NT$9.82 billion.
- Basic Earnings Per Share (EPS): NT$1.27.
- Performance Metrics: Operating income, EBITDA, net income attributable to stockholders, and EPS all surpassed our proposed guidance.
“The year-over-year improvements in the second quarter underscore the strength of our strategic execution and operational excellence,” stated Mr. Shui-Yi Kuo, Chairman and CEO of Chunghwa Telecom. “We have proudly set a new record for total revenue for the same period since 2018, increasing our mobile revenue market share and subscriber share in the new market landscape. Our postpaid mobile ARPU has outperformed peers, showing the highest YoY growth in the Taiwanese telecom industry for six consecutive quarters. Additionally, our fixed broadband service has seen remarkable growth as the number of subscribers opting for services of 300Mbps or higher continues to increase, resulting in revenue growth.”
“Regarding our business groups, the Consumer Business Group sustained its growth trajectory, driven by mobile revenue growth from ongoing 5G migration and an increase in postpaid subscribers, as well as fixed broadband revenue growth. Our video platform subscriptions exceeded three million in the first week of broadcasting the Olympic Games, expanding our lead as the largest video platform in Taiwan. The Enterprise Business Group’s revenue decreased due to a high base from large ICT project revenue recognized last year, offset by increased IDC and cybersecurity revenues. Notably, our cybersecurity business has shown 10 consecutive quarters of YoY growth. The International Business Group saw a 21.8% revenue increase, driven by overseas ICT business growth.”
“In targeting AI opportunities, we constructed AI Data Centers, GPU Cloud, and CHT AI Factory, supporting enterprise and government clients in AI transformation. To enhance our market value, we focused on carving out subsidiaries for spin-offs and evaluating M&A opportunities. Our subsidiaries, CHT Security and International Integrated Systems Inc., will complete their listing on Taiwan’s Emerging Stock Market Board by the second half of 2024. Looking ahead, we are confident that our strategies will enable us to achieve our long-term goals for superior value creation for all stakeholders,” concluded Mr. Kuo.
Detailed Revenue Analysis
Total Revenue: Increased by 1.2% to NT$54.12 billion in Q2 2024.
Consumer Business Group:
- Revenue increased by 2.6% YoY to NT$33.60 billion.
- Mobile service revenue rose 3.8% YoY, driven by ongoing 5G migration and an increase in postpaid subscribers.
- Fixed broadband revenue continued to grow due to successful speed upgrades.
- Sales revenue grew 2.4% YoY, driven by strong sales of iPhone series.
- Income before tax decreased 1.6% YoY due to increased personnel expenses from salary raises.
Enterprise Business Group:
- Revenue decreased by 3.7% YoY to NT$16.89 billion, affected by last year’s high base from large ICT projects and deferred revenue.
- ICT business revenue remained stable, excluding those factors.
- Mobile service revenue slightly decreased due to a high base from a prepaid card project last year.
- Fixed-line revenue slightly decreased YoY, with a decline in fixed voice revenue offsetting growth in broadband access and data communication revenue.
- Income before tax decreased by 9.6% YoY.
International Business Group:
- Revenue increased by 21.8% YoY to NT$2.64 billion, with income before tax up 8.2% YoY, driven by overseas ICT business growth from clients’ global expansion.
Operating Costs and Expenses
Total operating costs and expenses increased by 2.4% to NT$42.19 billion, mainly due to higher manpower and electricity costs.
Operating Income and Net Income
Operating income for Q2 2024 decreased by 2.7% to NT$11.93 billion, with an operating margin of 22.0%, down from 22.9% in Q2 2023. Net income attributable to stockholders decreased by 1.0% to NT$9.82 billion. Basic earnings per share were NT$1.27.
