Chunghwa Telecom has announced its unaudited consolidated operating results for August 2024, revealing a revenue of NT$ 18.36 billion. Operating income for the month was NT$ 3.83 billion, with income before tax totaling NT$ 3.87 billion. Net income attributable to stockholders of the parent company reached NT$ 3.06 billion, EBITDA was NT$ 7.13 billion, and earnings per share (EPS) stood at NT$ 0.40.
August marked a seven-year revenue high for Chunghwa Telecom, driven by exceptional double-digit growth in ICT revenues. This growth was largely fueled by integrated ICT projects, IDC services, and cloud businesses. Core business areas also demonstrated stable growth. The high-speed promotion package contributed to a 3.7% year-on-year increase in fixed broadband access revenue and a 2.9% rise in data communication revenue. Mobile service revenue grew due to a higher number of 5G subscribers and postpaid SIMs.
A notable highlight was Chunghwa Telecom’s broadcast of the 2024 Paris Olympic Games on MOD and Hami Video, which achieved record viewership. This success led to the video subscription base exceeding 3 million within the first week and significantly boosted advertising revenue compared to the Tokyo 2021 Olympics.
Financial Overview (in NT$ billion):
| August 2024 | Jan.-Aug. 2024 | August 2023 | Jan.-Aug. 2023 | YoY % (Aug.) | YoY % (Jan.-Aug.) | |
|---|---|---|---|---|---|---|
| Revenue | 18.36 | 145.19 | 17.64 | 142.83 | 4.1 | 1.6 |
| Operating Costs | 14.53 | 113.77 | 13.74 | 110.48 | 5.7 | 3.0 |
| Operating Income | 3.83 | 31.42 | 3.90 | 32.35 | -1.7 | -2.9 |
| Income Before Tax | 3.87 | 31.94 | 3.94 | 32.88 | -1.9 | -2.9 |
| Net Income | 3.06 | 25.20 | 3.08 | 25.79 | -0.6 | -2.3 |
| EBITDA | 7.13 | 57.80 | 7.21 | 58.76 | -1.1 | -1.6 |
| EPS | 0.40 | 3.25 | 0.40 | 3.32 | -0.6 | -2.3 |
Note 1: “Other income and expenses” includes gains or losses from the disposal of property, plant, and equipment (PP&E), investment property, and impairment losses on PP&E and investment property.
Note 2: Growth rates are calculated based on NT$ thousand.
For further details, including financial statements and additional operational data,
Forward-Looking StatementsNon-GAAP Financial Measures
To complement its consolidated financial statements prepared in accordance with International Financial Reporting Standards (T-IFRSs), Chunghwa Telecom also provides EBITDA, a non-GAAP financial measure. EBITDA is defined as consolidated net income (or loss) excluding: (i) depreciation and amortization, (ii) total net comprehensive financing costs (including net interest expense, exchange gains or losses, monetary position gains or losses, and other financing costs and derivative transactions), (iii) other net income, (iv) income tax, and (v) gains or losses from discontinued operations.
Chunghwa Telecom utilizes EBITDA to evaluate its operating performance because it excludes: (i) depreciation and amortization, which are non-cash charges, (ii) financing costs influenced by external factors such as interest rates, foreign currency exchange rates, and inflation, which do not directly affect operating performance, (iii) income tax, and (iv) other income or expenses unrelated to core business operations.
Cautions on the Use of Non-GAAP Financial Measures
In addition to financial results prepared under T-IFRSs, Chunghwa Telecom provides non-GAAP measures like EBITDA. The company believes these measures offer investors an alternative view of operating performance, focused on ongoing business operations.
However, Chunghwa Telecom acknowledges the following:
- Non-GAAP measures have limitations and should be considered supplementary to T-IFRSs financial results.
- They should not be viewed in isolation or as substitutes for T-IFRSs financial measures.
- They are not necessarily superior to T-IFRSs measures and are not prepared under a comprehensive set of rules or principles.
- Non-GAAP measures may differ from those used by other companies, potentially limiting comparability.
Investors should be cautious not to consider non-GAAP results as replacements for T-IFRSs results or assume they are comparable to results reported by other companies.
