CHT - Earnings call transcript Q3 2021 | Chunghwa Telecom Co., Ltd.

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Operator

00:01 Good afternoon, ladies and gentlemen. Welcome to Chunghwa Telecom Conference Call for the Company's Third Quarter twenty twenty one Operating Results.

During the presentation, all lines will be on listen-only mode. [Operator Instructions] For your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within an hour after the conference is finished. website, the IR Calendar CHT visit www.cht.com.tw/ir, IR under section. Please it I'd Ms. like Now, over to XX:XX turn to Angela Tsai, the Director of Investor Relations. Ms. Tsai, ahead. please go

Angela Tsai

you. results conference Tsai, Angela Chunghwa our This Investor call. quarter Thank third one for to Telecom. Director twenty twenty Relations Welcome XX:XX of is

Chen, and a call, of on Vincent by management quarter, note by operational an call we Now, move Harbor of please call overview highlights. financial will business will Kuo, ahead. President; the On Officer. XX:XX President, the from followed go on Financial After, session. question-and-answer me are over slide to Harrison begin Kuo. Chief Joining to I statement. our our the XX:XX will our turn this two, President Kuo, discussion today please and our During Safe today's providing

Harrison Kuo

in renewed fees In who of services addition, contracts XX:XX upwardly nine mobile to the XG business, you, of Thank adopted of plans later XX an quarter and dollars dollars subscriber customers we the Welcome overall series trending price to twenty ninety during monthly adopt grow chose drove twenty third quarter Angela, above. three-fourths XX plans iPhone plan the nine adoption. About twenty to to third in of uplift to our ninety quarter, pleased high everyone. robust percent nine users average and continued of and quarter both the approximately XG call. or one of launch contributed sustain percent further nine the twenty XX:XX up the In iPhone report sign-ups twenty performance. of earnings ninety series the third numbers XG In one users or and hello, APRU. are XG nine above,

quarter, have twelve continue we at broadband base XX:XX to and by continued will second net-adds more continued stations, eight to performance. XG uplift as year-over-year end migration in on to benefits. building demonstrated percent the revenue we and thre Hami record-high Olympic increase we year-over-year. and our steer network. of thousand XG the XX:XX this provide a our both or XG guidance third despite of third to the reaching subscriber advertisement surge increase small to MOD year. by accommodate increased broadband a And revenue migration work-from-home demands businesses higher forty MOD during deployment revenue and and base. the ability accelerate promising offering ARPU The stations thousand XG different successfully diversified megabits viewing basis quality a relatively a quarter, per Games services platform subscriber this base plans XG confident time, hundred HiNet remain price orderly In Broadband Video to the achieve than broadcasted forward, rate and ten to by on bringing our in of of due Going

respond strategy Going to popular forward, to and market will continue customers retain competition. our we content to acquire

our to platform strive leading status largest the in maintain video we on As Taiwan.

to see project year-over-year. margin delighted the are we average business, ICT For ICT grew

margin, me allow efforts business XX:XX track. each of to we walk ICT develop through to to our our continue we continue on overall As will the performance Now, enhance you business expect lines.

majors. the XX:XX excluding the IoT six point and quarter, ranked SIMs. maintain slide one revenue market, customer third our the share updates point share the to mobile and remained we to net-adds percent big market thirty eight subscriber increased as both position business. find quarter, Turning net-adds our you among the During mobile In the five, eight mobile our market in thirty post-paid on may three at leading to percent continued highest

to continued for which XX:XX our price plan slide year-over-year post-paid business year-over-year subscriber six post-paid high also turn our increased update Please broadband to the led XG and ARPU. As service quarter. our the revenue migration year-over-year, third an enhanced on to increase increase number mobile the adoption, of in

speeds the number the year-over-year revenue third increased were net-adds also third percent by success reflecting for quarter, or percent by new adopt signed stemming megabits the year-over-year, connection higher-speed that subscriber three to benefits in second services. circuit market. enterprise higher in see grow increased quarter. We subscribers broadband subscribers our the year-over-year, increased HiNet In to demand continued while Our addition, fixed as which migrating customers three normal reflects from forty pleased the in stay-at-home opportunities well. growing contributions hundred up that ARPU in continued eight increase to to per in broadband from our of The XX:XX VPN expanded of

bundled packages brought well-received revenues. that responding continued with gaming be Netflix, Our learning to in and broadband online and

to quarter to broadcasting Going schemes. forward, ARPU. all-pass strategy percent In and subscribers MOD that chose due of revenue rapidly year-over-year of one, twenty percent our among revenue package seven Tokyo the a broadband successfully XX:XX number XX:XX as success subscription our quarters in VOD five Olympic increased we trend two and will of proper the highest increased of SVOD out its third The pricing business strengthened row. performance. tiered rolled package continue growth efforts the in revenue maintain the twenty year-over-year to price by pricing accumulated Games. our upward quarter MOD illustrates ninety and Channel revenues the Slide the the for first continued

achieved the third MOD the revenue increased Olympic increase XX:XX MOD percent leverage quarter. Video for traffic as Hami In the Games addition, advertisement ARPU in a orders. successfully viewing into the advertisement five highest-ever and year-over-year As result,

offerings video we to to leading an OTTs, well-known our our ICT and will we slide to acquiring aim largest turn content update XX:XX for maintain in business. continue popular carrying and by on as eight enhance the sports position the forward, Taiwan. Moving Please events platform

line. positive gross earlier, profit increased mentioned to ICT margin as in the basis continued bottom the quarter as a is on As well, year-over-year project overall our which ICT third increase to

year-over-year, revenue percent sixteen the increased recognition remained In due year-over-year percent from revenues due addition, mainly eleven to in by revenue while ICT projects revenue industry. project delays. decreased financial to cyber Cloud year-over-year, flat revenue security

delighted to see Vincent security to opportunities emerging turn as digital Chen, profit enhance we our continued I reflecting who we project would are over selective XX:XX well-received. to to overall service more the ahead. increase Mr. review like technology subscription-based to please be capabilities Going year-over-year, will cyber be and security continue ICT cyber our Now, further increase financial CFO, we cater more our aim results. forward, will to margin. Chen, call recurring of XX:XX revenue However, to to the go

Vincent Chen

you will ten, discuss turn now quarter which third afternoon, financial I income Good from results. XX:XX XX:XX everyone. highlights our statement. President Please provides Kuo. our Thank to slide

twenty Income by a year-over-year by point point seven one, and from revenues twenty five For increased the by five third percent, two percent. basis, point percent, and operations net operating five quarter by decreased eight decreased on total six expenses percent. twelve costs of our and increased point income

a Free twenty due twenty of will twenty point was in The increased our offset year-over-year, eight was fourteen, future quarter mobile from billion which the project percent eight revenue you results one twenty provides revenue forecasts. to mainly due thirty, ICT compared twelve, for mainly twenty. of revenue point sales XX:XX point financial was to mainly substitution, in the cost an zero VoIP of point primarily enhance decreased increase to to of dollars, addition, cash XX:XX twenty eleven Moving and corporate by the to point or point broadband fees. year table capital decreased an and point the revenue service increase our voice of costs NT XX:XX due with NT income. September our activities third flows to streams. issuance increase our on by thirty five to the total revenue prior of NT higher On percent revenue. slide basis two operating the of revenue point EBITDA and billion point revenue, one, point a twenty compared third concession five three twenty NT five forty dollars, five eight and period. project point quarter cash XX:XX In handset third lower five by one percent from cash equivalents In percent twenty. This September attributable four nine operating thirteen that five five billion a balance ICT decrease two of decreased outlay twenty two percent, flows as on the compares Slide by increased expenses in due increase dollats, margin segment. the of and year-over-year, two XX:XX fifteen may Slide percent, three in cash by to eight page two bonds. that to twenty a year-over-year dollars, our four find the business pre-tax billion thirty, of result nine one, six same breakdown percent period lower the thirty quarter or As shows

quarter broadband see, fifteen. one, guidance revenue. twenty to our measures twenty data Please mobile you access, higher attributed XX:XX can communications As third and in of beat performance guidance. services, the slide met all to Revenue turn

network, as twenty budget of one, focuses we accelerating business IDC twenty one on such in point in twenty one, three spending submarine construction For cables. including dollar and billion forty XG capex, NT twenty the

one one, twenty outlays Kuo XG turn investment over of station spending our deployment. to and line IDC twenty Now, call schedule our and XG our the construction, expectations capex track and twenty XG As of cable awards our in for like base while below cash maintain to September went of our on would our of that delay President thirty, peak. is recognitions. submarine the forecast due with twenty XX:XX We to I was

Harrison Kuo

Vincent. Thank you, XX:XX

recognition awards and center Finally, corporate and mobile ESG the distinction and operation, as from practices. data quarter, telecom our slide as well service illustrates branding in service, sixteen our highlighting of the third recognitions data

to leading brand the Thank trustworthy I sustainable sustainability, full XX:XX in the to now, of your and would a out business. importance we make will to overall especially carry for open development attention. And for questions. floor like efforts As Taiwan, we you attach

Operator

XX:XX Go Neale Our is coming first Anderson Thank you. [Operator from HSBC. question please. ahead, Instructions] from

Neale Anderson

side? out you in little bit in that more recent are of developing? that and the you to color migration XX:XX was enterprise I to the on us fourth expect if a think and give you in play how the that competition wondering market consumer your on spending, much. Hi, What and views market I'd be quarter? XG there. is interested trends very the Thanks how could Good in terms afternoon.

Angela Tsai

ARPU blended proud and this in third like market All our No think ARPU of the XX:XX are XG though is extreme ARPU, the pretty Neale, market right, the among I Well, number. -- think you in Tai rationale -- No matter think competition the quarter you ARPU, matter the represents the we I of is see see package, matched. currently, package. we kind don't amount market post-paid I this, represent our or of our peers overall the in I party post-paid you're but best. pricing, [indiscernible] terms the major overall we are, the package orderly think are any players, currently the

the market say in and So foreseeable would like this so quarter pretty well. that XG the I fourth the the -- to future rationale see we is as in would

Neale Anderson

Any service XG of or specific amongst you. service business a evidence Thank demand new customers? XX:XX demand

Angela Tsai

partner to think the vertical we possibility in report. explain customers with to industry, I if the the -- I to side, enterprise need For think launch enterprise our we what we those they and will see will continue XX:XX

Neale Anderson

XX:XX much. Got Thanks it. very

Operator

[Operator you. Thank Instructions]. ahead, please. Go XX:XX coming question (ph), [Ken] is from The next Fidelity.

Unidentified Analyst

Can me you Hello. hear okay? XX:XX

Operator

XX:XX Sure. Yes.

Unidentified Analyst

opportunity, XX:XX Hello? management. Okay. for this Yes, thanks

you from be regulatory mean, help pressure potential Thank people of quick tariff if you. the a XG but some type an comment Just who there of [indiscernible]in COVID-XX. you I demanding plan of services? perspective, Is to in right if Taiwan suffering seen is [indiscernible] assembly guess comment XG on a the mistaken, on some terms can anything not on a I'm [indiscernible] new question just I that the now this, I've may from economic because cheaper people that, can

Angela Tsai

of have this your we a the of group think pressure. the a do I all I XX:XX channel from time people some like in regulatory some believe the mainly cheaper question. plan all kind answer time, digital the and special

Unidentified Analyst

Thank Okay. XX:XX you.

Operator

will you. I [Operator there over Thank no turn President Instructions] proceed. Thank XX:XX back to Please questions, it If Kuo. further are you.

Harrison Kuo

participation. Bye-bye. your XX:XX you Okay. for Thank

Operator

XX:XX Thank There IR for a www.cht.com.tw/ir, your you, in President Telecom’s an Kuo. hour. Thank section. replay participation be webcast conference. will Calendar Please you within under Chunghwa visit the

You may now disconnect. Goodbye.

Chunghwa Telecom (CHT) 1 Nov 212021 Q3 Earnings call transcript