Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — Q2 2019 Earnings Presentation
16 slides from Taiwan Mobile's earnings presentation, Jul 25, 2019
Slide 1: Taiwan Mobile Co., Ltd. 2Q19 Results Summary
Taiwan Mobile Co., Ltd. 2Q19 Results Summary July 25, 2019 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation, including all forward-looking information, is subject to change without notice, whether as a result of new information, future events or otherwise, and Taiwan Mobile Co., Ltd. (the “Company”) undertakes no obligation to update or revise the
Slide 3: Business Overview
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Slide 4: Stabilization in Telecom Market
Stabilization in Telecom Market Telecom Revenue YoY Change 14% 7% -1% -5% -6% Telecom Market -3% -7% -5% -7% 2 Small Players -9% 2Q18 3Q18 4Q18 1Q19 2Q19 2Q19 Spectrum Yield Mobile Service Revenue (Mobile Service Revenue/Spectrum Amortization) CHT TWM TWM FET IFRS Pre-IFRS NT$mn IFRS Pre-IFRS 2Q19 1
Slide 5: Versatility
Versatility 2Q19 results +65% YoY +14% YoY # of iPhone bundle plan Cloud service revenue +6ppts YoY +35% YoY % of non-handset bundle plan IoT connectivities 1.1% Record low +70% YoY Postpaid churn rate ICT service revenue 5
Slide 6: Resilience in Pay-TV Business
Resilience in Pay-TV Business 2Q19 Basic TV Subscribers 2Q19 Penetration Rate DTV Broadband (‘000) Subscribers YoY(%) TFNM 559 -2.7% 48.7% 44.8% 41.9% 41.8% Kbro 1,145 -3.7% 25.6% 27.0% 30.4% CNS 1,134 -4.7% TBC 739 -2.6% 11.8% DTV BB Top 4 MSO 3,577 -3.6% TFNM Kbro CNS TBC Pre-IFRS 16 D&A EBIT (NT$
Slide 7: momo’s Dominance in B2C Market
momo’s Dominance in B2C Market E-commerce platform net income comparison (NT$mn) 1Q18 1Q19 309 396 138 105 121 100 17 20 49 1Q18 1Q19 7 (59) (45) (112) (303) (472) momo EHS Books.com. KuoBrothers friday Ruten PChome PCstore Note: 2Q19 financial statements are not yet available. (928) Revenue (NT$mn)
Slide 8: Financial Overview
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Slide 9: Performance by Business
Performance by Business Revenue Pre-IFRS16 EBITDA NT$bn Telecom CATV momo Total1 Telecom CATV momo Total1 2Q19 16.38 1.54 11.82 29.61 6.14 0.78 0.44 7.46 % of 55% 5% 40% 100% 82% 10% 6% 100% total 2Q19 -5% -3% 23% 4% -12% -3% 8% -11% YoY 1Q19 -10% -3% 15% -1% -11% -3% 17% -9% YoY 2Q19 YoY (Reported)
Slide 10: Results Summary
Results Summary 2Q19 1H19 NT$bn % of full % of 2Q Amount YoY Amount YoY year guidance guidance Revenues 29.61 4% 99% 59.49 1% 48% Operating Costs (21.49) 10% 99% (43.17) 5% 48% Operating Expenses (3.80) -5% 92% (7.76) -5% 46% Operating Income 4.33 -13% 103% 8.55 -12% 50% Non-op. Income (0.10) -11% 6
Slide 11: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 2Q19 1Q19 2Q18 NT$bn 2Q19 1Q19 2Q18 Total Assets 153.60 155.21 151.41 Liabilities 89.18 82.53 90.77 Current Assets 27.10 28.60 29.48 Current Liabilities 49.76 39.41 48.18 - Cash & Cash Equivalents 6.77 7.84 7.62 - ST Debts 8.70 13.60 9.77 - Receivable & Contract Assets 1
Slide 12: Cash Flow Analysis
Cash Flow Analysis NT$bn 2Q19 1Q19 2Q18 Operating 7.07 8.44 7.51 Investing (1.37) (2.09) (0.28) Financing (6.76) (6.02) (7.28) NT$bn 2Q19 1Q19 2Q18 Pre-IFRS 16 Operating1 6.12 7.47 7.51 Cash CAPEX2 (1.38) (2.02) (1.69) Free Cash Flow2 4.74 5.45 5.82 1. “Lease expenses” previously under operating act
Slide 13: Event Updates
| 832 XH X | Event updates 13
Slide 14: Awards and Recognition
Awards and Recognition Honored with the 2019 “Annual CSR Survey – Telecom Service Industry” award and “Outstanding Solutions – Public Welfare ” award from Global Views Monthly. Ranked among the top 5% of listed companies in the “Corporate Governance Evaluation” conducted by the Taiwan Stock Exchange
Slide 15: Key Message
Key Message TWM started seeing improved fundamentals with June operating results stabilized compared with a year ago. Joining forces with digital leaders, including momo and AppWorks companies, to offer compelling service bundles will prove to be our winning strategy. Looking forward, as we approach
Slide 16: Q&A
Q&A 16