Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q3 2017 Earnings Presentation
18 slides from Chunghwa Telecom's earnings presentation, Oct 27, 2017
Slide 1: 3Q 2017 Operating Results
3Q 2017 Operating Results October 27, 2017 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 • 93.4% share by subs (10.80mn subs) • 84.1% share by minutes Capitalize and remain at the forefront of digital – #1 DLD convergence trends • 82.6% s
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Mobile Internet Adoption Strategy Mobile Internet Subs as % of Postpaid Subs Continue raising threshold for Thousand 76.6% 79.5% 81.7% unlimited data usage to move 7000 72.3% 74.8% 85% towards tier-pricing and fair usage subscriber 6000 80% 5000 6,996 7,233 7,340
Slide 6: Fixed Broadband and Internet Services
Fixed Broadband and Internet Services Performance Strategy Broadband Access Revenue Leverage network capability to offer high- ARPU NT$ NT$ mn 716 718 721 717 717 speed upload service 4,278 4,289 4,307 4,264 4,264 Leverage Big Data capability for precision 5,000 600 marketing and precision network c
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Subscription grew 8.9% YoY for Q3 Continue to enrich content, including movies, drama, TV series and cartoons for 2017 SVOD Revenue grew 4.5% YOY for Q3 2017 Leverage the existing broadband and 4G mobile subscriber base to grow MOD Household Using Television ra
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Strategy Enhancement Leverage our advantage on network Offer one-stop end-to-end cloud infrastructure, IDC, CDN, etc. to surveillance service to our major expand ICT business accounts Launch highest-rated cloud IDC to Enhance IoT platform with cloud further explore busines
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2017 Q3 2016 % 2017 2016 % Revenues 56.42 58.52 (3.6) 166.63 171.66 (2.9) Operating Costs and 43.99 47.02 (6.4) 130.33 133.48 (2.4) Expenses Income from 12.42 11.49 8.0 36.27 38.15 (4.9) Operations Net Inco
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2017 Q3 2016 % 2017 2016 % Domestic Fixed 17.77 18.74 (5.2) 51.54 54.82 (6.0) Local 7.58 7.94 (4.6) 22.39 23.91 (6.4) DLD 0.68 0.73 (6.7) 2.00 2.18 (8.1) Broadband Access 4.65 4.75 (2.0) 14.06 14.29 (1.6) MOD 0.62 0.59 4.
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2017 Q3 2016 % 2017 2016 % Operating Costs 35.66 38.52 (7.4) 105.35 108.87 (3.2) Operating Expenses 8.33 8.50 (1.9) 24.98 24.61 1.5 Marketing 6.27 6.45 (2.8) 18.71 18.46 1.3 General and Administrative 1.12 1.11 1.2 3.
Slide 13: Financials: Cash Flow and EBITDA Margin
Financials: Cash Flow and EBITDA Margin Consolidated Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2017 Q3 2016 % 2017 2016 % Net Cash Flow from 19.32 13.38 44.4 45.89 33.28 37.9 Operating Activities CapEx 6.90 5.49 25.6 16.59 12.31 34.8 Free Cash Flow 12.42 7.89 57.5 29.30 20.97 39.7 Cash and Cash Equiv
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Jan-Sep Jan-Sep Q3 2017 Q3 2017 Achieving Achieving 2017 (NT$bn) (A) （E） % 2017 2017 % (E) (A) (E) Revenues 56.42 58.21 96.9 166.63 168.92 98.6 231.16 Operating Costs 43.99 46.35 94.9 130.33 135.10 96.5 186.45 and Expenses Income from 12.42 11.85 104.8 36.
Slide 15: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2017: NT$30.3 bn NT$ bn Continue to focus on core businesses 50 for future investments 45 20% – FTTx 14.4% 40 10.8% 10.2% 13.1% 10.0% – 4G – IDC/ Cloud 7.2% 10% 35 32.6 30.3 – Service Platforms Capex as % of Revenue 0
Slide 16: Q&A
Q&A
Slide 17: Reference
Reference
Slide 18: Regulatory Update (2017/4/1~2020/3/31)
Regulatory Update (2017/4/1~2020/3/31) Years Target Business Applicable Services X factor in Formula : △CPI - X effect 1. The three year Broadband access monthly fee (exclude tariff reduction 1 ADSL and >100Mpbs service) 3.19% plan is applicable from April 1. 2017 to March 31, 2020 and applied SMP 2