Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q2 2018 Earnings Presentation
16 slides from Chunghwa Telecom's earnings presentation, Jul 30, 2018
Slide 1: 2Q 2018 Operating Results
2Q 2018 Operating Results July 30, 2018 TSE: 2412 NYSE: CHT
Slide 2: Disclaimer
Disclaimer STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION The unaudited financial information under T-IFRSs in this presentation is preliminary and subject to adjustments and modifications. Adjustments and modifications to the financial statements may be identified during the course of the audi
Slide 3: Business Overview
Business Overview
Slide 4: Chunghwa Telecom Overview
Chunghwa Telecom Overview Strong Market Position (a) Operational Strategies Domestic Fixed Streamline services and strengthen – #1 Local profitability • 93.2% share by subs (10.58mn subs) • 84.1% share by minutes Capitalize and remain at the forefront of digital – #1 DLD convergence trends • 83.1% s
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Mobile Internet Adoption Strategy Mobile Internet Subs as % of Postpaid Subs Continue to enhance mobile network Thousand quality with precision construction 8,028 8,245 8,307 8,483 8,964 subscriber 7000 90% Offer diversified product portfolio to 6000 81.7% 82.9% 5
Slide 6: Fixed Broadband and Internet Services
Fixed Broadband and Internet Services Performance Strategy Broadband Access Revenue Leverage network capability to offer ARPU NT$ NT$ mn 717 717 716 711 710 high-speed upload service 5,000 4,264 4,264 4,253 4,236 4,250 600 Leverage Big Data capability for 400 2,500 200 precision marketing and precis
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Continue to enrich content, including Subscription for Q2 2018 grew 32.9% movies, drama, TV series and cartoons for YoY SVOD Leverage the existing broadband and 4G Revenue for Q2 2018 grew 32.5% YoY mobile subscriber base to grow MOD subscribers In H1, accumula
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Obtain Advanced Metering Leverage our advantage on network Infrastructure (AMI) project from infrastructure, IDC, CDN, ect. to expand Taipower to establish more than 50 ICT business thousand NB-IoT metering connections Leverage nationwide NB-IoT/Cat M1
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Q2 2018 Q2 2017 H1 2018 H1 2017 Growth Growth (NT$bn) (Upon the adoption of (Before the adoption of % (Upon the adoption of (Before the adoption of % IFRS 15) IFRS 15) IFRS 15) IFRS 15) Revenues 53.66 55.67 (3.6) 107.29 110.21 (2.6) Operating Cost
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q2 2018 Q2 2017 H1 2018 H1 2017 % % Domestic Fixed 16.44 16.99 (3.2) 32.24 33.76 (4.5) Local 7.01 7.43 (5.6) 13.95 14.81 (5.8) DLD 0.62 0.67 (7.0) 1.23 1.32 (6.8) Broadband Access 4.59 4.67 (1.8) 9.18 9.41 (2.4) MOD 0.82 0.62 32.5 1.59 1.23
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Q2 2018 Q2 2017 H1 2018 H1 2017 Growth Growth (NT$bn) (Upon the (Before the adoption of IFRS adoption of IFRS % (Upon the adoption of (Before the adoption of % 15) 15) IFRS 15) IFRS 15) Operating Costs 33.20 35.08 (5.4) 67.64 69.70 (2.9) Operating Expenses 8
Slide 13: Financials: Cash Flow
Financials: Cash Flow Consolidated Q2 2018 Q2 2017 H1 2018 H1 2017 Growth Growth (NT$bn) (Upon the adoption of (Before the adoption of % (Upon the (Before the adoption of IFRS adoption of IFRS % IFRS 15) IFRS 15) 15) 15) Net Cash Flow from 17.24 15.92 8.3 24.56 26.57 (7.6) Operating Activities CapEx
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q2 2018 Q2 2018 Achieving H1 2018 2018 Achieving (NT$bn) (A) （E） % (A) (E) % Revenues 53.66 55.80 ~ 56.06 95.7 ~ 96.2 107.29 231.47 ~ 232.97 46.1 ~ 46.4 Operating Costs and 41.60 43.35 ~ 43.92 94.7 ~ 95.9 84.21 182.07 ~ 184.24 45.7 ~ 46.3 Expenses Income f
Slide 15: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2018: NT$33.1bn NT$ bn Continue to focus on core businesses 50 for future investments 20% – FTTx 45 14.3% 10.8% 11.9% 10.2% 10.5% 40 8.8% 10% – 4G 33.1 35 1.4 – IDC/ Cloud Capex as % of Revenue 27.0 – Service Platform
Slide 16: Q&A
Q&A