Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q3 2018 Earnings Presentation
16 slides from Chunghwa Telecom's earnings presentation, Oct 31, 2018
Slide 1: 3Q 2018 Operating Results
3Q 2018 Operating Results October 31, 2018 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 • 93.1% share by subs (10.51mn subs) • 84.0% share by minutes Capitalize and remain at the forefront of digital – #1 DLD convergence trends • 82.9% s
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider 4G Penetration Strategy Continue to enhance mobile network Thousand 4G Subs as % of Total Subs quality to satisfy customers Expand IoT services over NB-IoT subscriber and Cat-M1 network Offer diversified rate plans and product portfolio to satisfy customer demands
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 717 716 711 710 703 high-speed upload service 5,000 4,264 4,253 4,236 4,250 4,225 600 Leverage Big Data capability for 400 2,500 390 372 357 338 320 200 precision
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Continue to enrich content, including Subscription for Q3 2018 grew 32.3% movies, drama, TV series and cartoons for YoY SVOD Leverage the existing broadband and 4G Revenue for Q3 2018 grew 37.0% YoY mobile subscriber base to grow MOD As of 3Q18, accumulated rev
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Own 80% market share in clean pipe Leverage our advantage on network network/information security service and infrastructure, IDC, CDN, ect. to expand 55% market share in PKI-based identity ICT business service Leverage nationwide NB-IoT/Cat M1 IDC rev
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Jan-Sep Jan-Sep Q3 2018 Q3 2017 Growth 2018 2017 Growth (NT$bn) (Upon the adoption of (Before the adoption of % (Upon the (Before the % IFRS 15) IFRS 15) adoption of adoption of IFRS 15) IFRS 15) Revenues 52.71 56.42 (6.6) 160.00 166.63 (4.0) Oper
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2018 Q3 2017 % 2018 2017 % Domestic Fixed 16.50 17.77 (7.2) 48.74 51.54 (5.4) Local 6.89 7.58 (9.1) 20.84 22.39 (6.9) DLD 0.61 0.68 (10.0) 1.84 2.00 (7.9) Broadband Access 4.55 4.65 (2.3) 13.73 14.06 (2.4) MOD 0.85 0.62 3
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Jan-Sep Jan-Sep Q3 2018 Q3 2017 Growth 2018 2017 Growth (NT$bn) (Upon the (Before the adoption of IFRS adoption of IFRS % (Upon the (Before the % 15) 15) adoption of adoption of IFRS 15) IFRS 15) Operating Costs 34.43 35.66 (3.4) 102.07 105.35 (3.1) Operatin
Slide 13: Financials: Cash Flow
Financials: Cash Flow Consolidated Jan-Sep Jan-Sep Q3 2018 Q3 2017 Growth 2018 2017 Growth (NT$bn) (Upon the adoption of (Before the adoption of % (Upon the (Before the % IFRS 15) IFRS 15) adoption of IFRSadoption of IFRS 15) 15) Net Cash Flow from 21.76 19.36 12.4 46.21 45.93 0.6 Operating Activiti
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Jan-Sep Q3 2018 Q3 2018 Achieving 2018 Achieving (NT$bn) (A) （ E） % 2018 (E) % (A) Revenues 52.71 58.13 ~ 58.42 90.2 ~ 90.7 160.00 231.47 ~ 232.97 68.7 ~ 69.1 Operating Costs and 42.28 45.29 ~ 45.87 92.2 ~ 93.3 126.49 182.07 ~ 184.24 68.7 ~ 69.5 Expenses I
Slide 15: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2018: NT$33.1bn NT$ bn Continue to focus on core businesses 50 for future investments 20% – FTTx 45 14.3% 11.9% 12.1% 10.8% 10.2% 10.0% 40 10% – 4G 33.1 35 1.4 – IDC/ Cloud Capex as % of Revenue 27.0 – Service Platfor
Slide 16: Q&A
= CChunghwaTelecom Q&A