Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q1 2019 Earnings Presentation
18 slides from Chunghwa Telecom's earnings presentation, Apr 29, 2019
Slide 1: 1Q 2019 Operating Results
1Q 2019 Operating Results April 29, 2019 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 • 92.9% share by subs (10.38mn subs) Capitalize and remain at the forefront of digital • 85.5% share by minutes – #1 DLD convergence trends • 84.3% s
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Mobile Service Revenue Strategy Billion 25 0% Expand IoT services over NB-IoT -2% 20 and Cat-M1 network (before IFRS 15 adoption) -4% 15 Offer diversified rate plans and revenue -6% YoY growth rate -8% 10 product portfolio to satisfy customer -10% 5 -12% demands 0
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 711 710 703 707 702 high-speed upload service 5,000 4,236 4,250 4,225 4,267 4,201 600 Leverage Big Data capability for 400 2,500 precision marketing and precision
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Continue to enrich content, including Subscription for 1Q 2019 grew 20.2% YoY movies, drama, TV series and cartoons for Revenue for 1Q 2019 grew 15.7% YoY SVOD Revenue from advertisement for 1Q 2019 Leverage the existing broadband and 4G grew 25.2% YoY mobile s
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy IDC revenue for 1Q 2019 grew 69.0% Leverage our advantage on network YoY infrastructure, IDC, CDN, ect. to expand IoT revenue for 1Q 2019 grew 68.0% ICT business YoY Deploy nationwide NB-IoT/Cat M1 dual Information security revenue for 1Q network to pr
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated 2018 2017 Growth Growth (NT$bn) Q1 2019 Q1 2018 % (Upon the adoption of (Before the adoption of % IFRS 15) IFRS 15) Revenues 51.33 53.63 (4.3) 215.48 227.51 (5.3) Operating Costs and 40.93 42.62 (4.0) 171.95 180.71 (4.8) Expenses Income from 10.40
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q1 2019 Q1 2018 2018 2017 % % Domestic Fixed 15.79 15.76 0.2% 66.75 71.14 -6.2% Local 6.46 6.94 -6.9% 27.57 29.60 -6.9% DLD 0.55 0.61 -10.5% 2.43 2.65 -8.4% Broadband Access 4.50 4.59 -2.1% 18.30 18.68 -2.0% MOD 0.89 0.77 15.7% 3.26 2.55 27
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated 2018 2017 Growth Growth (NT$bn) Q1 2019 Q1 2018 % (Upon the adoption of (Before the adoption of % IFRS 15) IFRS 15) Operating Costs 33.48 34.45 (2.8) 139.55 146.84 (5.0) Operating Expenses 7.45 8.17 (8.9) 32.40 33.87 (4.3) Marketing 5.36 6.05 (11.5) 24.08 25
Slide 13: Financials: Cash Flow
Financials: Cash Flow Consolidated 2018 2017 Growth Growth (NT$bn) Q1 2019 Q1 2018 % (Upon the adoption of (Before the adoption of % IFRS 15) IFRS 15) Net Cash Flow from 13.23 7.32 80.6 66.37 70.93 (6.4) Operating Activities CapEx 4.49 4.39 2.3 28.55 26.88 6.2 Free Cash Flow 8.74 2.93 197.7 37.82 44
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q1 2019 Q1 2019 Achieving 2019 Achieving (NT$bn) (A) （E） % (E) % Revenues 51.33 52.43 ~ 52.72 97.4 ~ 97.9 220.56 ~ 222.91 23.0 ~ 23.3 Operating Costs and 40.93 42.08 ~ 42.14 97.1 ~ 97.3 177.84 ~ 178.25 23.0 ~ 23.0 Expenses Income from 10.40 10.34 ~ 10.57 9
Slide 15: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2019: NT$29.0 bn NT$ bn Continue to focus on core businesses for future investments 50 20% – FTTx 45 11.9% 13.2% 13.1% – 4G 40 10.2% 8.8% – IDC/ Cloud 8.2% 10% 35 29.0 – Service Platforms Capex as % of Revenue 30 28.6
Slide 16: Regulation Update
Regulation Update
Slide 17: Telecommunications Management Act Draft Update
Telecommunications Management Act Draft Update Key Areas Reduce the entry barrier to the telecom markets by changing the original concession/approval system to the registration system General market players shall have only ordinary obligations to minimum necessary extent, dominant market players wil
Slide 18: Q&A
Q&A