Chunghwa Telecom (2412) Q2 2024 earnings summary

Executive summary

• Achieved record-high Q2 2024 revenue of NT$54.12 billion, the highest since 2018, driven by mobile, broadband, and ICT growth, and maintained #1 industry position with expanding market share.

• Mobile market revenue share rose to 40.5% and subscriber share to 37.7%, with postpaid ARPU leading industry growth for six consecutive quarters.

• Video platform subscriptions surpassed three million, boosted by exclusive Olympic Games broadcast.

• Strategic investments in AI Data Centers, CHT AI Factory, and GPU Cloud target enterprise AI transformation and future growth.

• Subsidiary CHT Security and International Integrated Systems Inc. are set to become publicly traded in 2H24.

Financial highlights

• Q2 2024 revenue reached NT$54.12 billion, up 1.2% year-over-year; H1 2024 revenue up 1.3% to NT$109.06 billion.

• Net income for Q2 2024 was NT$9.82 billion, down 1.0% year-over-year; EPS was NT$1.27.

• EBITDA for Q2 2024 was NT$21.81 billion, down 1.7% year-over-year; EBITDA margin at 40.31%.

• Free cash flow in H1 2024 increased 14.1% year-over-year to NT$19.05 billion; CapEx declined 12.8% to NT$10.27 billion.

• Operating margin was 22.0%, down from 22.9% a year ago; cash flow from operating activities increased 3.0% to NT$29.32 billion.

Outlook and guidance

• Q2 and H1 2024 results met or exceeded internal forecasts for revenue, net income, EPS, and EBITDA.

• Positive outlook for both consumer and enterprise business groups in H2 2024, with ICT business expected to achieve full-year forecast.

• Management remains confident in long-term value creation through strategic execution and market expansion.