Chunghwa records 4.1% revenue increase in 1Q21

5 May 2021

Taiwan’s Chunghwa Telecom has published its latest financial results, with the company reporting a total turnover of TWD50.10 billion (USD1.79 billion) for the first quarter of 2021, a 4.1% year-on-year increase. Revenues from the company’s mobile operations increased by 4.0% against 1Q20, to reach TWD23.44 billion in the first quarter of this year, ‘mainly due to the increase in handset sales revenue, which was offset by the decrease in mobile service revenue resulted from the impact of COVID-19 and VoIP substitution’. Internet business revenue for 1Q21 rose 1.6% y-o-y to TWD7.63 billion, while domestic fixed revenue improved by 4.8% to TWD15.40 billion ‘mainly due to the increase of ICT project revenue, which was offset by the decrease of local and DLD service revenue primarily driven by the increased mobile and VoIP substitution’. International fixed communications revenue decreased by 2.9%, however, to TWD2.17 billion.

With regards to other key financial metrics, Chunghwa reported that EBITDA in 1Q21 increased by 6.4% against the corresponding period of 2020, reaching TWD20.58 billion, while total operating costs and expenses rose by 3.7%, to TWD38.99 billion; the latter increase was attributed mainly to higher ICT project costs and cost of goods sold. Meanwhile, Chunghwa reported a net profit of TWD8.82 billion for the first quarter of 2021, compared to TWD8.28 billion a year earlier.

In terms of operational highlights, Chunghwa reported a 3.3% annualised increase in its mobile subscriber base, which totalled 11.38 million as of 31 March 2021. Of note, the company said it ‘continued to excel in growing numbers of high-priced 5G sign-ups as well as total 5G sign-ups’, and while it stopped short of giving an official figure, it did note that it had exceeded its internal target for the quarter, while also saying it remained on track to reach two million 5G subscribers by end-2021. Chunghwa’s 5G infrastructure rollout was also said to have continued apace, with the operator reporting that by the end of 1Q21 it had 6,300 base stations in operation, putting it ahead of its construction schedule, which envisages having 10,000 5G base stations by the end of this year.

Meanwhile, with Chunghwa having continued to execute a strategy of encouraging FTTx migration, it noted that as of 31 March 2021 the number of FTTx accesses on its books had increase to 3.62 million, representing 83.5% of its total fixed broadband user base, which stood at 4.339 million, down marginally from 4.388 million in 1Q20. Chunghwa also sought to highlight the increase in subscribers taking faster fixed broadband speeds, with the telco noting that 1.80 million customers were signed up to a plan offering download speeds of 100Mbps or higher as of end-March 2021, up 10.9% y-o-y, while the number of customers on plans offering speeds of 300Mbps or higher was said to have risen by 58% y-o-y. Fixed voice access maintained a downward trend though, falling to 9.84 million as of 31 March 2021, compared to 10.09 million a year earlier.

Commenting, Chunghwa’s chairman and CEO, Chi-Mau Sheih, said: ‘Our achievements this quarter mark an excellent start to 2021 with solid operational and financial performance … We are pleased to report stable financial and operating results in the first quarter of 2021. Our operating income, net income and EPS, all outperformed our guidance during the quarter, primarily driven by our strong execution upon our growth strategy of enhancing profitability.’

Taiwan, Chunghwa Telecom