Taiwanese telco revenue decreased by 6.2 percent
The outbreak of coronavirus has been blamed for the “challenging start to 2020”, for Taiwan telecommunications company, Chunghwa.
In a statement to the media Chi-Mau Shieh chairman and CEO of Chunghwa Telecom said, the telco had entered the pandemic in a “position of strength” and it was “able to remain” in the “leading market position in Taiwan”.
“Although the pandemic had a negative impact on our enterprise business and international roaming revenue during the quarter, it brought growth opportunities for our emerging businesses and IPTV/MOD services,” he stated.
Chunghwa’s financial report shows:
- Chunghwa Telecom’s total revenues for the first quarter of 2020 decreased by 6.2 per cent to NT$48.15 billion.
- Mobile communications revenue for the first quarter of 2020 decreased by 7.9 per cent to NT$22.54 billion. This was mainly due to the decrease in handset sales revenue and the decrease in mobile service revenue resulted from market competition, VoIP substitution, as well as the impact of COVID-19 on roaming revenue.
- Internet business revenue for the first quarter of 2020 remained flat year over year at NT$7.51billion.
- Domestic fixed revenue for the first quarter of 2020 decreased by 6.7 per cent year over year to NT$14.69 billion, mainly due to the decrease of local and DLD service revenue primarily driven by the increased mobile and VoIP substitution, as well as the decrease of ICT project revenue due to a higher baseline last year.
- International fixed communications revenue decreased by 17.6 per cent to NT$2.24 billion.
- Total operating costs and expenses for the first quarter of 2020 decreased by 8.1per cent year over year to NT$37.62 billion, mainly due to lower cost of goods sold, interconnection costs, and ICT project costs
- Operating Income and Net Income
- Income from operations for the first quarter of 2020 increased by 1.2 per cent to NT$ 10.53 billion. The operating margin was 21.9 per cent, as compared to 20.3 per cent in the same period of 2019. Net income attributable to stockholders of the parent decreased by 0.4 per cent to NT$8.32 billion. Basic earnings per share was NT$1.07.
- Cash flow from operating activities for the first quarter of 2020 increased by 0.8 per cent year over year to NT$ 13.33 billion, mainly due to the decrease of income tax payment.
- Cash and cash equivalents, as of March 31 2020, decreased by 55.4 per cent to NT$16.59 billion as compared to that as of March 31 2019. The decrease was mainly attributable to the payment of concession fee for 5G frequency spectrum, which is partially offset by the increase in short-term bills payable.
- EBITDA for the first quarter of 2020 increased by 1.0 per cent to NT$19.35 billion. EBITDA margin was 40.19 per cent, as compared to 37.3 3per cent in the same period of 2019.
- The Company continued to execute its strategy of encouraging FTTx migration. As of March 31st, 2020, the number of FTTx subscribers reached 3.62 million, accounting for 82.4per cent of the Company’s total broadband users. Moreover, the number of subscribers signing up for speeds of 100Mbps or higher increased by 11.4per cent year over year, reaching 1.62 million.
- HiNet broadband subscribers decreased by 1.7 per cent year over year to 3.61 million as of March 31, 2020.
- As of March 31 2020, Chunghwa Telecom had 11.01 million mobile subscribers, representing a 4.0per cent year-over-year increase.
- As of March 31 2020, the Company maintained its leading position in the fixed-line market, with a total of 10.09 million subscribers.
“As the COVID-19 pandemic continues worldwide, we are doing our utmost to protect the health and safety of our employees and customers,” Shieh stated. “While continuing to monitor the fluid situation, we remain focused on our long-term growth strategy and leveraging our core strengths to maintain market leadership.
We believe that, with our leading 5G spectrum resources, cutting-edge ICT technology, and strong market position, we will maintain our ability to deliver sustainable value for our shareholders.”
