Chunghwa Telecom reports results for Q4 and FY 2024

Chunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Fourth Quarter and Full Year of 2024

TAIPEI, Taiwan, R.O.C. — Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (“Chunghwa” or “the Company”) today reported its un-audited operating results for the fourth quarter of 2024. 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.)

Fourth Quarter 2024 Financial Highlights

• Total revenue increased by 5.6% to NT$ 65.35 billion.
• Consumer Business Group revenue increased by 2.2% to NT$ 37.33 billion.
• Enterprise Business Group revenue increased by 10.2% to NT$ 23.96 billion.
• International Business Group revenue decreased by 2.3% to NT$ 2.50 billion.
• Total operating costs and expenses increased by 6.0% to NT$ 53.83 billion.
• Operating income increased by 11.5% to NT$ 11.65 billion.
• EBITDA increased by 5.9% to NT$ 21.59 billion.
• Net income attributable to stockholders of the parent increased by 9.0% to NT$ 9.00 billion.
• Basic earnings per share (EPS) was NT$1.16.
• Revenue, operating income, income before tax, and EPS are all in line with our guidance.

Full Year 2024 Financial Highlights

• Total revenue increased by 3.1% to NT$230.03 billion.
• Consumer Business Group revenue increased by 2.1% to NT$ 139.98 billion.
• Enterprise Business Group revenue increased by 3.3% to NT$ 75.40 billion.
• International Business Group revenue increased by 8.0% to NT$ 9.92 billion.
• Total operating costs and expenses increased by 4.0% to NT$ 183.27 billion.
• Operating income increased by 1.1% to NT$ 46.88 billion.
• EBITDA increased by 0.6% to NT$ 86.50 billion.
• Net income attributable to stockholders of the parent increased by 0.8% to NT$ 37.21 billion.
• Basic earnings per share (EPS) was NT$4.80.
• Operating income, income before tax, and EPS all exceeded the high-end target of our full-year guidance.

“Chunghwa delivered an outperforming result in 2024, achieving a seven-year high in fullyear revenue and surpassing the high-end of our profitability guidance,” stated Mr. Chih-Cheng Chien, Chairman and CEO of Chunghwa Telecom. “With a precise strategic focus, we delivered stable and healthy growth across all business segments during the quarter. We maintained our leading position in Taiwan’s mobile market with a 40.3% revenue share and a 37.9% subscriber share. Our 5G postpaid subscription growth continued to contribute to mobile monthly fee uplift and resulted in a 38.8% 5G subscriber market share in Taiwan. Additionally, our successful cross-tier upgrade promotion for fixed broadband services resulted in the doubled 1 Gbps subscriber net-adds as over 70% of the promotion adopters chose 300 Mbps and above, including the 1Gbps service offering.”

“Regarding our three business groups, the Consumer Business Group maintained its growth momentum in both revenue and profit, resulting from subscription increase and popularity of individual and home-centric services. Subscribers to our multiple-play packages increased by 57% year-over-year, while subscriptions to our video services reached a record high with a 15.2% year-over-year increase. Consumer cybersecurity also enjoyed a 22% subscriber increase year over year. Our Enterprise Business Group performed impressively, with a robust 24.1% year-over-year growth in ICT business revenue, mainly contributed by the growth in IDC, cloud, and cybersecurity revenue, increasing by 62%, 46%, and 56% year over year, respectively. For innovative achievement, in the fourth quarter, we successfully developed Taiwan’s first 5G unmanned vehicle solution for smart harbor inspections, capable of operating across land, sea, and sky. We expect to extend the solution to firefighting and coast patrollingrelated projects. For international business, our International Business Group led our overseas subsidiaries to achieve remarkable success in 2024 by providing ICT solutions to high-tech companies and the PCB industry in Japan, the United States, and Southeast Asia,” said Mr. RongShy Lin, President of Chunghwa Telecom.

“To monetize our technology capabilities, in the fourth quarter, we team up with NTT Corporation to showcase an ultra-low-latency immersive video program via IOWN APN, paving a new way for innovative virtual viewing solutions. Meanwhile, as the only telco in Taiwan capable of offering Open RAN testing, we successfully helped Taiwanese vendors go global and secure international funding. We also plan to roll out commercial services for OneWeb and SES by mid-2025 to boost satellite-related revenues,” added Mr. Lin.

“Our ESG efforts received global acknowledgment as we retained the position in the 2024 Dow Jones Sustainability World Index, won The Asset ESG Corporate Jade Award, and were named in Newsweek’s “World’s Most Trustworthy Companies 2024,” affirming our commitment to sustainability. Looking ahead to 2025, we are confident in maintaining our leading position across all key benchmarks in the industry,” Mr. Chien added.

Revenue

Chunghwa Telecom’s total revenues for the fourth quarter of 2024 increased by 5.6% to NT$ 65.35 billion.

Consumer Business Group’s revenue increased by 2.2% to NT$ 37.33 billion. Mobile service revenue of CBG +3.0% YoY due to 5G migration as well as continued growth of postpaid subscribers. Fixed broadband revenue increased by 2.8% YoY due to the successful speed upgrade strategy. In addition, sales revenue rose on year mainly due to better sales of smartphones. CBG’s income before tax for the fourth quarter of 2024 increased 0.77 billion year-over-year, primarily due to the strong performance of our core business and a one-time impairment loss recognized last year.

Enterprise Business Group’s revenue increased by 10.2% to NT$ 23.96 billion, primarily driven by a robust 24.1% year-over-year growth in ICT business revenue. In the fourth quarter, major growth drivers, such as IDC, cloud, and cybersecurity services, delivered strong revenue growth by 62%, 46% and 56%, respectively., fueled by both their projects and recurring revenues. However, despite the ongoing 5G migration and fixed broadband speed upgrades demand that continued to increase related service revenues, the decline of mobile voice revenue and fixed voice revenue remained to lead to a relatively flat year-over-year performance in our EBG’s core business, which further dragged down its income before tax as well on a year-over-year basis.

International Business Group’s revenue dipped slightly by 2.3% to NT$2.5 billion, mainly due to the decline in international voice revenue. However, as our robust IDC business grew and its demand continued to increase, IBG’s income before tax increased year-over-year.

Total revenue for the full year of 2024 increased by 3.1% to NT$230.03 billion, mainly due to continued strong performance in ICT, mobile, and broadband services.

Operating Costs and Expenses

Total operating costs and expenses for the fourth quarter of 2024 increased by 6.0% to NT$ 53.83 billion, mainly due to increasing cost of goods, ICT project cost driven by the growing ICT business, as well as the higher manpower cost, professional service fees and electricity expenses. Total operating costs and expenses for 2024 increased by 4.0% to NT$ 183.27 billion.

Operating Income and Net Income

Income from operations for the fourth quarter of 2024 increased by 11.5% to NT$ 11.65 billion. The operating margin was 17.83%, as compared to 16.90% in the same period of 2023. Net income attributable to stockholders of the parent increased by 9.0% to NT$ 9.00 billion. Basic earnings per share was NT$1.16.

Income from operations for 2024 increased by 1.1% to NT$ 46.88 billion. The operating margin was 20.38%, compared to 20.77% for 2023. Net income attributable to stockholders of the parent increased by 0.8% to NT$ 37.21 billion. Basic earnings per share was NT$4.80.

Cash Flow and EBITDA

Cash flow from operating activities, as of December 31st , 2024, increased by 6.2% year over year to NT$ 79.17 billion.

Cash and cash equivalents, as of December 31st, 2024, increased by 7.3% to NT$ 36.28 billion as compared to that as of December 31st, 2023.

EBITDA for the fourth quarter of 2024 was NT$ 21.59 billion, increasing by 5.9% year over year. EBITDA margin was 33.04%, as compared to 32.95% in the same period of 2023.

EBITDA for 2024 increased by 0.6 % to NT$ 86.50 billion, and EBITDA margin was 37.60%, compared to 38.53% for 2023.

Business Highlights

Mobile

As of December 31st, 2024, the number of mobile subscribers slightly decreased by 0.1% to 13.12 million. In the fourth quarter, total mobile service revenue increased by 1.7% year-overyear to NT$ 16.88 billion, while mobile post-paid ARPU excluding IoT SIMs decreased 0.7% year over year to NT$ 552.

Fixed Broadband/HiNet

As of December 31st, 2024, the number of broadband subscribers increased by 0.6% to 4.43 million. The number of HiNet broadband subscribers increased by 1.3% to 3.74 million. In the fourth quarter, total fixed broadband revenue grew 2.9% year over year to NT$ 11.45 billion, while ARPU increased 1.7% to NT$793.

Fixed line

As of December 31st, 2024, the number of fixed-line subscribers was 8.89 million.