Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q4 2018 Earnings Presentation
17 slides from Chunghwa Telecom's earnings presentation, Jan 30, 2019
Slide 1: 4Q 2018 Operating Results
4Q 2018 Operating Results January 30, 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 • 93.0% share by subs (10.45mn subs) • 83.9% share by minutes Capitalize and remain at the forefront of digital – #1 DLD convergence trends • 82.9% 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 (before IFRS 15 adoption) -2% 20 and Cat-M1 network -4% YoY growth rate 15 Offer diversified rate plans and revenue -6% 10 -8% 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 716 711 710 703 707 high-speed upload service 5,000 4,253 4,236 4,250 4,225 4,267 600 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 Accumulated subscription for 2018 grew movies, drama, TV series and cartoons for 25.5% YoY SVOD Accumulated revenue for 2018 grew Leverage the existing broadband and 4G 27.7% YoY mobile subscriber base to grow MOD subscribe
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy IDC revenue for 4Q18 grew 16.7% Leverage our advantage on network YoY infrastructure, IDC, CDN, ect. to expand Accumulated IDC revenue for 2018 ICT business grew 22.4% YoY Deploy nationwide NB-IoT/Cat M1 dual Continue acquiring Fintech projects network
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Q4 2018 Q4 2017 2018 2017 Growth Growth (NT$bn) (Upon the adoption of (Before the adoption of % (Upon the adoption of (Before the adoption of % IFRS 15) IFRS 15) IFRS 15) IFRS 15) Revenues 55.46 60.88 (8.9) 215.46 227.51 (5.3) Operating Costs and
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q4 2018 Q4 2017 2018 2017 % % Domestic Fixed 18.02 19.60 (8.1) 66.75 71.14 (6.2) Local 6.73 7.21 (6.6) 27.57 29.60 (6.9) DLD 0.59 0.65 (9.9) 2.43 2.65 (8.4) Broadband Access 4.58 4.63 (1.0) 18.30 18.68 (2.0) MOD 0.82 0.70 17.4 3.26 2.55 27.
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Q4 2018 Q4 2017 2018 2017 Growth Growth (NT$bn) (Upon the adoption of (Before the adoption of % (Upon the adoption of (Before the adoption of % IFRS 15) IFRS 15) IFRS 15) IFRS 15) Operating Costs 37.46 41.48 (9.7) 139.53 146.84 (5.0) Operating Expenses 7.99
Slide 13: Financials: Cash Flow
Financials: Cash Flow Consolidated Q4 2018 Q4 2017 2018 2017 Growth Growth (NT$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) Net Cash Flow from 20.11 25.00 (19.6) 66.32 70.93 (6.5) Operating Activities CapEx 9.
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q4 2018 Q4 2018 Achieving 2018 2018 Achieving (NT$bn) (A) （E） % (A) (E) % Revenues 55.46 63.61 ~ 64.33 86.2 ~ 87.2 215.46 231.47 ~ 232.97 92.5 ~ 93.1 Operating Costs and 45.45 51.31 ~ 51.73 87.9 ~ 88.6 171.94 182.07 ~ 184.24 93.3 ~ 94.4 Expenses Income fro
Slide 15: 2019 Forecast
2019 Forecast Consolidated Growth (NT$bn) 2019（E） 2018 % Revenues 220.56 ~ 222.91 215.46 2.4 ~ 3.5 Operating Costs and Expenses 177.84 ~ 178.25 171.94 3.4 ~ 3.7 Income from Operations 42.69 ~ 44.63 43.62 (2.1) ~ 2.3 Net Income2 34.11 ~ 35.68 35.52 (4.0) ~ 0.5 EPS 4.40 ~ 4.60 4.58 (4.0) ~ 0.5 EBITDA
Slide 16: 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 50 for future investments 20% – FTTx 45 13.3% 13.1% 10.8% 11.9% 10.2% 40 10% – Mobile broadband 35 – IDC/ Cloud Capex as % of Revenue 29.0 – Service Platfor
Slide 17: Q&A
Q&A