Chunghwa Beats Zacks Estimates – Analyst Blog

Chunghwa Telecom Co. Ltd. (CHT) has declared fourth quarter 2009 financial results. Quarterly total revenue was $1,584 million, up 2.6% year-over-year. This was also better than the Zacks Consensus Estimate of $1,540 million. Despite facing increased competition and an extremely challenging economic environment, the company was able to raise its subscriber base for both high-speed broadband and mobile businesses.

 

Fourth quarter 2010 net income was $328.6 million, up 24.6% year-over-year. Quarterly EPADR (Earning per American Depository Receipt) was 43 cents, also up 24.6% year-over-year. Quarterly EPADR of 43 cents was significantly above the Zacks Consensus Estimate of 36 cents. This was mainly due to prudent cost management resulting in massive improvement in operating profit.

 

Total operating expenses in the fourth quarter were $1,178 million, down 0.4% year-over-year. Quarterly EBITDA increased 4.4% year-over-year to $685 million and operating profit increased 12.7% year-over-year to $409 million. In the reported quarter, EBITDA margin was 43.3% compared to 42.6% in the year-ago quarter. Operating profit margin was 25.7% compared to 23.4% in the year-ago quarter.

 

During full fiscal 2009, Chunghwa generated $2,396 million of cash from operations, down 16% year-over-year. This was primarily because of the increased pension fund contributions. Capital expenditure during full fiscal 2009 was $791 million, down 15.4% year-over-year. At fiscal-end 2009, Chunghwa had $2,272 million of cash and cash equivalents on its balance sheet, down 9.9% year-over-year.

 

 

Mobile Communications segment accounted for $679 million of total fourth quarter revenue, up 1.6% year-over-year. Internet segment accounted for $198.5 million, up 9.5% year-over-year. Domestic Fixed-line Communications segment generated $573.5 million, down 0.2% year-over-year. International Fixed-line Communications segment accounted for $114.7 million, down 6.1% year-over-year. Non-telecom Business segment generated the rest $18.3 million, up 8% year-over-year.

 

 

Total broadband subscriber base was 4.31 million. Out of this, the FTTx subscriber base was 1.64 million, a net addition of 568,000 clients in 2009. ADSL subscriber base was 2.67 million, a net reduction of 575,000 clients in 2009. Total number of ADSL and FTTx customers with a service speed greater than 8 Mbps reached 2.0 million, representing 46.8% of total broadband subscribers at the end of 2009, compared to 36.9% at the end of 2008. HiNet subscriber base was 4.07 million, a net reduction of 35,000 clients in 2009.

 

Mobile subscriber base was 9.27 million, up 3.6% year-over-year. Out of this, 3G wireless subscriber base was 4.73 million, up 32.9% year-over-year. International/Domestic Fixed-line subscriber base was 12.45 million.