Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q4 2019 Earnings Presentation
17 slides from Chunghwa Telecom's earnings presentation, Jan 22, 2020
Slide 1: 4Q 2019 Operating Results
4Q 2019 Operating Results January 22, 2020 © Chunghwa Telecom 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 © Chunghwa Telecom
Slide 4: Chunghwa Telecom Overview
Chunghwa Telecom Overview Strong Market Position (a) Operational Strategies Domestic Fixed Streamline services and strengthen – #1 Local profitability • 92.5% share by subs (10.19 mn subs) Capitalize and remain at the forefront of digital • 83.6% share by minutes – #1 DLD convergence trends • 82.1%
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 -4% and Cat-M1 network (before IFRS 15 adoption) 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 707 713 702 705 703 high-speed upload service 5,000 4,267 4,201 4,231 4,192 4,254 600 Leverage Big Data capability for 400 2,500 310 294 280 269 261 200 precision
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Continue to enrich content, including Subscription for 4Q 2019 grew 3.6% YoY movies, drama and TV series for SVOD Revenue for 4Q 2019 grew 10.6% YoY Leverage the existing broadband and 4G Revenue from advertisement for 4Q 2019 mobile subscriber base to grow MOD
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Consolidated ICT revenue got back to Leverage our advantage on network the year-over-year growth trajectory in infrastructure, IDC, CDN, ect. to expand 2019 ICT business As of FY 2019, accumulated IDC Deploy nationwide NB-IoT/Cat M1 dual revenue grew 0
Slide 9: Financials Overview
Financials Overview © Chunghwa Telecom
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q4 2019 Q4 2018 % 2019 2018 % Revenues 55.23 55.49 (0.5) 207.52 215.48 (3.7) Operating Costs and 45.20 45.46 (0.6) 166.74 171.95 (3.0) Expenses Income from 9.98 10.23 (2.4) 40.70 43.64 (6.8) Operations Net Income2 7.80 8.41 (
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q4 2019 Q4 2018 2019 2018 Domestic Fixed 18.39 17.99 2.3 65.73 66.60 (1.3) Local 6.31 6.73 (6.2) 25.73 27.57 (6.7) DLD 0.54 0.59 (8.0) 2.20 2.43 (9.5) Broadband Access 4.52 4.58 (1.4) 17.98 18.30 (1.8) MOD 0.92 0.82 12.0 3.60 3.26 10.6 Mobi
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q4 2019 Q4 2018 % 2019 2018 % Operating Costs 37.18 37.47 (0.8) 135.94 139.55 (2.6) Operating Expenses 8.02 7.99 0.6 30.80 32.40 (5.0) Marketing 5.72 5.90 (3.1) 22.10 24.08 (8.2) General and Administrative 1.32 1.15 15.8 4.76 4.60 3.4 R
Slide 13: Financials: Cash Flow
Financials: Cash Flow Consolidated Growth Growth (NT$bn) Q4 2019 Q4 2018 % 2019 2018 % Net Cash Flow from 23.55 20.16 16.8 72.39 66.36 9.1 Operating Activities CapEx 7.81 9.21 (15.1) 24.17 28.56 (15.4) Free Cash Flow 15.74 10.95 43.7 48.22 37.80 27.6 Cash and Cash Equivalents at the end of period 34
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q4 2019 Q4 2019 Achieving 2019 2019 Achieving (NT$bn) (A) （ E） % (A) (E) % Revenues 55.23 60.35~61.38 90.0~91.5 207.52 220.56~222.91 93.1~94.1 Operating Costs and 45.20 49.55~49.84 90.7~91.2 166.74 177.84~178.25 93.5~93.8 Expenses Income from 9.98 10.79~11
Slide 15: 2020 Forecast
2020 Forecast Consolidated Growth (NT$bn) 2020（E） 2019 % Revenues 214.10~215.29 207.52 3.2~ 3.7 Operating Costs and Expenses 175.51~175.83 166.74 5.3~ 5.5 Income from Operations 38.54~ 40.25 40.70 (5.3)~(1.1) Net Income2 30.91~ 32.47 32.81 (5.8)~(1.1) EPS 3.99~ 4.19 4.23 (5.8)~(1.1) EBITDA 74.91~ 76
Slide 16: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2020: NT$30.7 bn NT$ bn Continue to focus on core businesses 50 for future investments 20% – FTTx 45 13.3% 14.3% 11.9% 11.7% 10.2% – 5G 40 10% 30.7 35 – IDC/ Cloud Capex as % of Revenue 28.6 27.0 0% 30 23.5 1.1 24.2 1
Slide 17: Q&A
Q&A © Chunghwa Telecom