Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q1 2020 Earnings Presentation
16 slides from Chunghwa Telecom's earnings presentation, Apr 30, 2020
Slide 1: 1Q 2020 Operating Results
1Q 2020 Operating Results April 30, 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 • 92.4% share by subs (10.12 mn subs) Capitalize and remain at the forefront of digital • 84.2% share by minutes – #1 DLD convergence trends • 83.0%
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 702 705 703 713 715 high-speed upload service 5,000 4,201 4,231 4,192 4,254 4,246 600 Leverage Big Data capability for 400 2,500 200 precision marketing and precis
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Continue to enrich content, including Subscription for 1Q 2020 grew 1.8% YoY movies, drama and TV series for SVOD Revenue for 1Q 2020 grew 2.9% YoY Leverage the existing broadband and 4G Revenue from advertisement for 1Q 2020 mobile subscriber base to grow MOD
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Cloud revenue grew 26.9% YoY for Leverage our advantage on network 1Q20 infrastructure, IDC, CDN, ect. to expand ICT streaming revenue continued to ICT business grow Deploy nationwide NB-IoT/Cat M1 dual network to provide high-efficiency and quality Io
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q1 2020 Q1 2019 % 2019 2018 % Revenues 48.15 51.33 (6.2) 207.52 215.48 (3.7) Operating Costs and 37.62 40.93 (8.1) 166.75 171.95 (3.0) Expenses Income from 10.53 10.40 1.2 40.66 43.64 (6.9) Operations Net Income2 8.32 8.36 (0
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q1 2020 Q1 2019 2019 2018 % % Domestic Fixed 14.69 15.75 (6.7) 65.73 66.60 (1.3) Local 6.11 6.42 (4.8) 25.73 27.57 (6.7) DLD 0.50 0.55 (8.1) 2.20 2.43 (9.5) Broadband Access 4.50 4.50 0.1 17.98 18.30 (1.8) MOD 0.91 0.89 2.9 3.60 3.26 10.6 M
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth 2019 2018 Growth (NT$bn) Q1 2020 Q1 2019 % % Operating Costs 30.39 33.48 (9.2) 135.95 139.55 (2.6) Operating Expenses 7.23 7.45 (2.9) 30.80 32.40 (5.0) Marketing 5.08 5.36 (5.1) 22.10 24.08 (8.2) General and Administrative 1.21 1.17 3.4 4.76 4.60 3.3
Slide 13: Financials: Cash Flow
Financials: Cash Flow Consolidated Growth Growth (NT$bn) Q1 2020 Q1 2019 % 2019 2018 % Net Cash Flow from 13.33 13.22 0.8 72.43 66.36 9.1 Operating Activities CapEx 3.73 4.49 (17.0) 24.17 28.56 (15.4) Free Cash Flow 9.6 8.73 10.0 48.26 37.80 27.6 Cash and Cash Equivalents at the end of period 16.59
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q1 2020 Q1 2020 Achieving 2020 Achieving (NT$bn) (A) （E） % (E) % Revenues 48.15 50.47 ~ 50.69 95.0~95.4 214.10~215.29 22.4~22.5 Operating Costs and 37.62 40.70 ~ 40.79 92.2~92.4 175.51~175.83 21.4~21.4 Expenses Income from 10.53 9.67~9.99 105.4~108.9 38.54
Slide 15: 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 for future investments 50 20% – FTTx 45 11.9% 13.2% 11.7% 14.3% – 5G 40 8.8% 7.7% 10% – IDC/ Cloud 35 30.7 – Service Platforms Capex as % of Revenue 28.6 1.
Slide 16: Q&A
Q&A ©-chunghwatelecom