Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q3 2015 Earnings Presentation
16 slides from Chunghwa Telecom's earnings presentation, Oct 29, 2015
Slide 1: 3Q 2015 Operating Results
3Q 2015 Operating Results October 29, 2015 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) Mobile Performance Domestic Fixed Mobile market shares continued to grow – #1 Local • 94.1% share by subs (11.23 mn subs) 39.0% • 85.6% share by minutes 38.1% – #1 DLD 38.0% • 82.2% share by minutes 36.6% – #1 Broadband access 37.0% 37.1% • 75.8%
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Performance VAS Performance Strategy Focusing on 4G service promotion NT$ mn 48.4% 48.5% 48.8% and mobile internet subscriber 45.6% 47.3% expansion 941 892 VAS as %of Mobile 953 Service Revenue 40% 1,046 Further upgrading mid-to-low tier VAS reve nue 8,000 1,012 3
Slide 6: Fixed Broadband and Internet Services
Fixed Broadband and Internet Services Performance Strategy Leveraging network capability to offer high- Broadband Access Revenue NT$ mn 701 709 713 710 714 ARPU NT$ speed upload service Leveraging Big Data capability for precision 5,000 3,978 4,074 4,136 4,135 4,194 600 marketing and precision netwo
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Subscriber market share Continuing to enrich local contents (CATV+IPTV) YoY remained at and VOD programs around 20.5% in Q2 2015 Optimizing MOD cost structure Household TV Usage rate increased Leveraging the existing broadband to 67.8% from 61.9% YoY for Q3 sub
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Information security and cloud service Leveraging our advantage on network revenue doubled YoY for the first infrastructure, IDC, CDN, etc. to expand three quarters in 2015 ICT business Personal Cloud (Hami+) subscribers Offering ICT total solutions by
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2015 Q3 2014 % 2015 2014 % Revenues 56.18 56.14 0.1 169.57 166.97 1.6 Operating Costs and 42.09 44.96 (6.4) 130.46 131.54 (0.8) Expenses Income from 14.04 11.17 25.7 39.02 35.40 10.2 Operations Net Income2
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2015 Q3 2014 % 2015 2014 % Domestic Fixed 17.91 18.08 (0.9) 53.21 52.46 1.4 Local 8.50 8.98 (5.4) 25.35 26.88 (5.7) DLD 0.80 0.84 (5.1) 2.36 2.50 (5.4) Broadband Access 4.81 4.76 1.0 14.47 14.28 1.3 MOD 0.53 0.65 (18.8) 1
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2015 Q3 2014 % 2015 2014 % Operating Costs 33.89 36.46 (7.0) 106.30 106.50 (0.2) Operating Expenses 8.20 8.50 (3.5) 24.16 25.04 (3.5) Marketing 6.18 6.68 (7.4) 18.19 19.27 (5.6) General and Administrative 1.10 1.00 11
Slide 13: Cash Flow & EBITDA Margin
Cash Flow & EBITDA Margin Consolidated Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2015 Q3 2014 % 2015 2014 % Net Cash Flow from 17.34 18.41 (5.8) 47.26 42.45 11.3 Operating Activities CapEx 5.15 7.88 (34.6) 15.47 20.97 (26.2) Free Cash Flow 12.19 10.53 15.8 31.79 21.48 47.9 Cash and Cash Equivalents a
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q3 2015 Q3 2015 Achieving Jan-Sep Jan-Sep Achieving (NT$bn) (A) （E） % 2015 (A) 2015 (E) % 2015(E) Revenues 56.18 57.78 97.2 169.57 168.83 100.4 231.09 Operating Costs 42.09 46.32 90.9 130.46 133.97 97.4 185.92 and Expenses Income from 14.04 11.43 122.8 39.
Slide 15: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2015: NT$30.7bn NT$ bn Continue to focus on core businesses 50 for future investments 45 15.0% 16.0% 14.4% 20% – 4G 13.3% 12.6% 40 36.4 9.1% 10% – FTTx 33.3 32.6 35 0.6 1.6 30.7 – Service Platforms Capex as % of Reven
Slide 16: Q&A
Q&A