UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Chunghwa Telecom Co., Ltd. |
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(Translation of registrants name into English) | ||||
Room 110, Finance Department of Headquarters, 21-3 Hsinyi Road, Sec. 1, Taipei, Taiwan | ||||
(Address of principal executive office) |
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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: [x] Form 20-F [ ] Form 40-F | ||||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ] | ||||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ] | ||||
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: [ ] Yes [x] No | ||||
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
Chunghwa Telecom Co., Ltd. | ||
Date: April 28, 2016 | By: |
/s/Bo Yung Chen |
Name: | Bo Yung Chen | |
Title: | Chief Financial Officer | |
Exhibit No. | Description | |
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99.1 | Press Release to Report Un-audited Consolidated Operating Results for the First Quarter of 2016 | |
Chunghwa Telecom Reports Un-Audited Consolidated Operating Results
for the First Quarter of 2016
TAIPEI, Taiwan, R.O.C. April 28, 2016 Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (Chunghwa or the Company) today reported its un-audited operating results for the first quarter of 2016. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards (T-IFRSs) on a consolidated basis.
(Comparisons throughout the press release, unless otherwise stated, are made with regard to the prior year period)
First Quarter 2016 Financial Highlights
1. | Total revenue increased by 0.8% to NT$56.94 billion |
2. | Mobile communications revenue increased by 0.6% to NT$28.16 billion |
A. | Mobile value-added services (VAS) revenue increased by 7.6% to NT$10.31 billion, with mobile Internet revenue, the largest contributor to VAS revenue, increasing by 8.7% |
B. | Smart device sales revenue decreased by 2.1% to NT$7.89 billion |
3. | Internet revenue increased by 4.7% to NT$6.70 billion |
4. | Domestic fixed communications revenue increased by 1.5% to NT$17.80 billion |
5. | International fixed communications revenue decreased by 10.2% to NT$3.49 billion |
6. | Total operating costs and expenses decreased by 3.4% to NT$43.15 billion |
7. | Net income attributable to stockholders of the parent increased by 11.9% to NT$11.66 billion |
8. | Basic earnings per share (EPS) was NT$1.50 |
Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, Chunghwa Telecom continues to make solid strides in growing our 4G, ICT and enterprise businesses, as well as maintaining control of our operational costs and expenses, as evidenced by our financial and operating results in the first quarter of 2016. First, we were able to boost our profitability at a faster pace than our peers, with EPS increasing by 11.9% year over year. Second, on the mobile side, we grew mobile internet revenue by 8.7% year over year, and accumulated 5.21 million 4G subscribers by the end of the first quarter, propelling our market share to reach 38.6%. In addition, we led the way in deploying our 2.6G frequency band on March 24, and on top of that we also launched the new Big 4G promotion plans to cater to demands of a wide spectrum of customers from high-to low-end. We believe these initiatives will help us to improve data speeds and attract additional mobile internet customers.
Revenue
Chunghwa Telecoms total revenues for the first quarter of 2016 increased by 0.8% to NT$56.94
billion.
Mobile communications revenue for the first quarter 2016 increased by 0.6% to NT$28.16 billion. This was mainly due to the continual growth of mobile VAS revenue which was partially offset by the decrease in mobile voice revenue and smart device sales. The decrease in mobile voice revenue was mainly due to increased market competition and VoIP substitution.
Internet business revenue for the first quarter of 2016 increased by 4.7% year-over-year to NT$6.70 billion. The increase was primarily attributable to higher data communications revenue and application value-added service revenue.
Domestic fixed revenue for the first quarter of 2016 increased by 1.5% year-over-year to NT$17.80 billion, mainly due to the increase of the ICT project revenue which offset the decrease of local and DLD service revenue. Local and DLD service revenue decreased by 4.7% and 6.8%, respectively, mainly due to increased mobile and VoIP substitution. Broadband access revenue decreased by 0.7% to NT$4.83 billion.
International fixed revenue decreased by 10.2% to NT$3.49 billion mainly due to lower international long distance revenue because of increased market competition, which offset the increase of international data revenue.
Operating Costs and Expenses
Total operating costs and expenses for the first quarter of 2016 decreased by 3.4% year over year
to NT$43.15 billion, mainly due to the lower interconnection expenses, cost of goods sold and
depreciation expenses.
Operating Income and Net Income
Income from operations for the first quarter of 2016 increased by 17.0% to NT$13.78 billion. The
operating margin was 24.2%, compared to 20.9% in the same period of 2015. Net income attributable
to stockholders of the parent increased by 11.9% to NT$11.66 billion. Basic earnings per share was
NT$1.50.
Cash Flow and EBITDA
Cash flow from operating activities for the first quarter of 2016 decreased by 44.9% to NT$6.49
billion, which mainly resulted from the cash contributions to the pension fund as required under
the Labor Law in Taiwan.
Cash and cash equivalents as of March 31st, 2016 increased by 12.2% to NT$34.54 billion as compared to that as of March 31st, 2015.
EBITDA for the first quarter of 2016 increased by 7.8% to NT$21.92 billion and EBITDA margin was 38.5% compared to 36.0% in the same period of 2015.
Business and Operational Highlights
Broadband/HiNet
The Company continued to execute its strategy of encouraging FTTx migration. As of March 31st, 2016, the number of FTTx subscribers reached 3.41 million, accounting for 75.8% of the Companys total broadband users. Moreover, the number of subscribers signing up for speeds of 100Mbps or higher increased by 15.7% year over year, reaching more than 1.08 million.
HiNet broadband subscribers decreased by 0.5% year-over-year, totaling 3.77 million as of March 31st, 2016.
Mobile
As of March 31st, 2016, Chunghwa had 11.04 million mobile subscribers, representing a 1.5% year-over-year decrease. The Company also had 6.28 million mobile Internet subscribers, representing a 17.3% year-over-year increase.
As of March 31st, 2016, the company accumulated 5.21 million 4G subscribers.
Fixed line
As of March 31st, 2016, the Company maintained its leading position in the fixed-line market, with a total of 11.11 million subscribers.
Financial Statements
Financial statements and additional operational data can be found on the Companys website at http://www.cht.com.tw/en/ir/stockit-earningsit.html.
NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. These statements constitute
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the
U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as will, expects, anticipates, future, intends, plans,
believes, estimates and similar statements. Statements that are not historical facts, including
statements about Chunghwas beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties that could cause actual results
to differ materially from the forward-looking statements. A number of important factors could cause
actual results to differ materially from those contained in any forward-looking statement.
Investors are cautioned that actual events and results could differ materially from those
statements as a result of a number of factors including, but not limited to the risks outlined in
Chunghwas filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and
20-F, in each case as amended. The forward-looking statements in this press release reflect the
current belief of Chunghwa as of the date of this press release and Chunghwa undertakes no
obligation to update these forward-looking statements for events or circumstances that occur
subsequent to such date, except as required under applicable law.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
NON-GAAP FINANCIAL MEASURES
To supplement the Companys consolidated financial statements presented in accordance with
International Financial Reporting Standards pursuant to the requirements of the Financial
Supervisory Commission, or T-IFRSs, Chunghwa Telecom also provides EBITDA, which is a non-GAAP
financial measure. EBITDA is defined as consolidated net income (loss) excluding (i) depreciation
and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest
expense, exchange gain or loss, monetary position gain or loss and other financing costs and
derivative transactions), (iii) other income, net, (iv) income tax, (v) (income) loss from
discontinued operations.
In managing the Companys business, Chunghwa Telecom relies on EBITDA as a means of assessing its operating performance because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax (iv) other expenses or income not related to the operation of the business.
CAUTIONS ON USE OF NON-GAAP FINANCIAL MEASURES
In addition to the consolidated financial results prepared under T-IFRSs, Chunghwa Telecom
also provide non-GAAP financial measures, including EBITDA. The Company believes that the
non-GAAP financial measures provide investors with another method for assessing its operating
results in a manner that is focused on the performance of its ongoing operations.
Chunghwa Telecoms management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Companys operating results, as well as when forecasting and analyzing future periods. However, the Company recognizes that:
| these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Companys T-IFRSs financial measures; |
| these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Companys T-IFRSs financial measures; |
| these non-GAAP financial measures should not be considered to be superior to the Companys T-IFRSs financial measures; and |
| these non-GAAP financial measures were not prepared in accordance with T-IFRSs and investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principle. |
Further, these non-GAAP financial measures may be unique to Chunghwa Telecom, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Companys results to the results of other companies. Readers are cautioned not to view non-GAAP results as a substitute for results under T-IFRSs, or as being comparable to results reported or forecasted by other companies.
About Chunghwa Telecom
Chunghwa Telecom (TAIEX 2412, NYSE: CHT) is Taiwans largest integrated telecommunications services company that provides fixed-line, mobile, broadband, and internet services. The Company also provides information and communication technology services to corporate customers. In recent years, Chunghwa has been actively involved in corporate social responsibility and has won domestic and international awards and recognition. For more information, please visit our website at http://www.cht.com.tw.
Contact: Phone: Email: |
Fu-fu Shen +886 2 2344 5488 chtir@cht.com.tw |