Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q2 2019 Earnings Presentation
16 slides from Chunghwa Telecom's earnings presentation, Jul 31, 2019
Slide 1: 2Q 2019 Operating Results
2Q 2019 Operating Results July 31, 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 • 92.8% share by subs (10.32 mn subs) Capitalize and remain at the forefront of digital • 83.8% share by minutes – #1 DLD convergence trends • 82.3%
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Mobile Service Revenue Strategy Billion 18 0% Expand IoT services over NB-IoT 16 -2% 14 and Cat-M1 network (before IFRS 15 adoption) -4% 12 -6% Offer diversified rate plans and revenue 10 YoY growth rate -8% 8 6 -10% product portfolio to satisfy customer -12% 4 de
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 710 703 707 702 705 high-speed upload service 5,000 4,250 4,225 4,267 4,201 4,231 600 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 2Q 2019 grew 15.3% YoY movies, drama and TV series for SVOD Revenue for 2Q 2019 grew 9.3% YoY Leverage the existing broadband and 4G Revenue from advertisement for 2Q 2019 mobile subscriber base to grow MOD
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy IDC revenue for 1H 2019 grew 18.8% Leverage our advantage on network YoY infrastructure, IDC, CDN, ect. to expand Cloud revenue for 1H 2019 grew ICT business 20.9% YoY Deploy nationwide NB-IoT/Cat M1 dual Information security revenue for 1H network to
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q2 2019 Q2 2018 % H1 2019 H1 2018 % Revenues 50.11 53.66 (6.6) 101.44 107.29 (5.5) Operating Costs and 39.80 41.60 (4.3) 80.72 84.21 (4.1) Expenses Income from 10.30 12.05 (14.5) 20.71 23.00 (10.0) Operations Net Income2 8.57
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q2 2019 Q2 2018 H1 2019 H1 2018 % % Domestic Fixed 15.92 16.40 (2.9) 31.71 32.16 (1.4) Local 6.51 7.01 (7.1) 12.97 13.95 (7.0) DLD 0.56 0.62 (10.0) 1.11 1.23 (10.2) Broadband Access 4.51 4.59 (1.7) 9.01 9.18 (1.9) MOD 0.90 0.82 9.3 1.78 1.5
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q2 2019 Q2 2018 % H1 2019 H1 2018 % Operating Costs 32.27 33.19 (2.8) 65.75 67.64 (2.8) Operating Expenses 7.53 8.41 (10.4) 14.97 16.57 (9.6) Marketing 5.44 6.33 (14.0) 10.79 12.37 (12.8) General and Administrative 1.14 1.17 (2.6) 2.31
Slide 13: Financials: Cash Flow
Financials: Cash Flow Consolidated Growth Growth (NT$bn) Q2 2019 Q2 2018 % H1 2019 H1 2018 % Net Cash Flow from 15.96 17.12 (6.8) 29.18 24.45 19.3 Operating Activities CapEx 5.82 6.82 (14.7) 10.32 11.21 (8.0) Free Cash Flow 10.14 10.30 (1.6) 18.86 13.24 42.5 Cash and Cash Equivalents at the end of p
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q2 2019 Q2 2019 Achieving H1 2019 2019 Achieving (NT$bn) (A) （E） % (A) (E) % Revenues 50.11 53.52 ~ 53.96 92.9 ~ 93.6 101.44 220.56 ~ 222.91 45.5 ~ 46.0 Operating Costs and 39.80 42.84 ~ 42.84 92.9 ~ 92.9 80.72 177.84 ~ 178.25 45.3 ~ 45.4 Expenses Income f
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% 10.5% – 4G 40 10.2% 10.2% 10% – IDC/ Cloud 35 29.0 – Service Platforms Capex as % of Revenue 30 28
Slide 16: Q&A
Q&A