Chunghwa Telecom Reports Operating Results for 1Q 2007 and F发布时间：2018-10-06 12:31 浏览次数：AG集
Revenue Growth and Cost Controls Bolster Q1 Profit
TAIPEI, Taiwan, April 30 /Xinhua-PRNewswire-FirstCall/ -- Chunghwa Telecom Co., Ltd (TAIEX: 2412; NYSE: CHT) ("Chunghwa" or "the Company"), today reported operating results for the first quarter of fiscal year 2007. All figures were prepared in accordance with US GAAP unless otherwise stated.
Financial Highlights for 1Q07:
-- Total revenue increased year-over-year by 1.7% to NT$45.78 billion
-- Internet and data revenue rose 8.9% year-over-year to NT$12.18 billion
-- Mobile revenue increased 0.7% year-over-year to NT$18.07 billion
-- Net income totaled NT$11.15 billion, a year-over-year increase of
-- Earnings per share (EPS) were NT$1.15, or NT$11.53 per ADS
-- Net cash flow from operations decreased 17.6% year-over-year to
Total revenues for the first quarter of fiscal year 2007 increased year-over-year by 1.7% to NT$45.78 billion, of which 32.3% was from fixed-line services, 39.5% was from mobile services and 26.6% was from Internet and data services, with the remainder attributed to other revenues. Positive revenue growth was driven by strong Internet and data revenue growth, sustained mobile revenue growth, and a moderated decline in fixed-line revenue. 8.9% year-over-year Internet and data services revenue growth came on the heels of continued broadband subscriber growth and broadband speed upgrades. Mobile revenue increased 0.7% in the first quarter to $NT18.07 billion. This year-on-year increase was driven primarily by 13.4% mobile VAS revenue growth, a 2.8% increase in outgoing usage minutes, as well as a slower than expected fixed-to-mobile traffic decline. Fixed-line revenue decreased by 3.7%, the result of a 4.5% local revenue decrease due to mobile and broadband substitution and a 9.4% domestic long distance revenue decrease due to mobile substitution and VoIP. The decline in fixed-line revenue was partially offset by a 2.6% increase in International long distance revenue, primarily attributable to the launch of customized international calling cards for foreign workers and the continued increase in wholesale revenue.
Costs and Expenses
For 1Q 2007, total operating costs and expenses decreased year-over-year by 5.6% to NT$30.56 billion. This decrease was mainly due to excluding the one-off ERP cost incurred in 1Q 2006. Moreover, depreciation and amortization costs have continued to decrease, and were down by 3.1% year-over-year to NT$9.92 billion in 1Q 2007.
EBITDA and Net Income
EBITDA for 1Q 2007 increased 9.9% year-over-year to NT$25.14 billion. The EBITDA margin was 54.9% compared to 50.8% in the first quarter of 2006. Net income for 1Q 2007 was NT$11.15 billion, a year-over-year increase of 19.6%. The increase in net income was mainly due to the exclusion of the one-off ERP cost incurred in 1Q 2006.
Capital expenditures totaled NT$4.90 billon for 1Q 2007, a 21.9% decrease compared to the same period last year. The decrease in capital expenditures was due primarily to a NT$1.88 billion decrease in mobile spending.
Net cash flow from operations was NT$15.65 billion, as compared to NT$18.99 billion in 1Q 2006. As of March 31, 2007, the Company's cash and cash equivalents totaled NT$79.08 billion.
Businesses Performance Highlights
Internet and Data Services
-- Chunghwa added 48,000 new HiNet subscribers over the quarter to bring
the total number of Internet subscriptions to 4.35 million at the end
of March 2007, an increase from 4.30 million at the end of December
-- Broadband subscriptions, including ADSL and FTTB subscribers,
increased to 4.11 million at the end March 31, 2007. 20,000 new ADSL
subscribers and 58,000 new FTTB subscribers were added during the
-- Data revenue was up 9.1% year-over-year, and can primarily be
attributed to Chief Telecom, which was consolidated from 3Q 2006, and
contributed NT$126 million in 1Q 2007. 1Q 2007 was the first quarter
in which MOD service revenue was reported in the data revenue
category of the income statement as a result of its regulation under
the Telecommunications Act. Prior to 2007, MOD service revenue was
reported under 'other revenue.' As of the end of March 2007, Chunghwa
had 285,111 MOD subscribers.
-- As of March 31, 2007, Chunghwa had 8.56 million mobile subscribers,
up 0.82% from December 31, 2006.
-- Chunghwa remained the leading mobile operator in Taiwan. According to
statistics published by the NCC, at the end of February 2007 the
Company's 2G revenue and 2G subscriber market share were 36.0% and
-- Chunghwa added 340,000 3G subscribers during 1Q 2007, bringing the
total number of 3G subscribers to 1.28 million. At the end of the
quarter, 3G ARPU was 63% higher than that of 2G ARPU.
-- Mobile VAS revenue for the quarter represented 6.47% of total mobile
revenue, compared to 5.75% in 1Q 2006.
-- As of the end of March 2007, the Company maintained its market
leading fixed-line market position, with fixed-line subscribers
totaling 13.08 million, down by 0.29% compared to 4Q 2006.
Forecast for fiscal year 2007 (based on ROC GAAP)
-- Total revenue to be NT$182.22 billion,
-- Operating costs and expenses to be NT$126.16 billion,
-- Income before income tax to be NT$56.34 billion,
-- Net income to be NT$44.45 billion, and
-- Earnings per share to be NT$4.60.
Financial statements and additional operational data can be found on the Chunghwa Telecom website at http://www.cht.com.tw/ir/filedownload .
About Chunghwa Telecom
Chunghwa Telecom (TAIEX: 2412; NYSE: CHT) is the leading telecom service provider in Taiwan. Chunghwa Telecom provides fixed-line, mobile and Internet and data services to residential and business customers in Taiwan.
Note Concerning Forward-looking Statements
Except for statements in respect of historical matters, the statements made in this press release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of Chunghwa Telecom to be materially different from what may be implied by such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, among other things: extensive regulation of telecom industry; the intensely competitive telecom industry; our relationship with our labor union; general economic and political conditions, including those related to the telecom industry; possible disruptions in commercial activities caused by natural and human induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases, such as SARS; and those risks identified in the section entitled "Risk Factors" in Chunghwa Telecom's Form F-1 and F-3 filed with the U.S. Securities and Exchange Commission in connection with our ADR public offering.
The financial statements included in this press release were prepared and published in accordance with U.S. GAAP. Investors are cautioned that there are many differences between ROC GAAP and U.S. GAAP. As a result, our results under U.S. GAAP and ROC GAAP may in many events be substantially different.
The forward-looking statements in this press release reflect the current belief of Chunghwa Telecom as of the date of this press release and we undertake no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.