Chunghwa Telecom (2412) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached NT$55.61 billion, up 3.6% year-over-year, marking a seven-year high, driven by strong ICT and mobile business performance across all segments.

• Maintained industry leadership in 5G penetration and subscriber growth, with 5G subscriber market share at 38.8% and overall mobile market share at 37.8%.

• Expanded international presence with a new European subsidiary in Frankfurt/Germany and joined the IoT World Alliance.

• Advanced ESG initiatives, including SBTi Net-Zero verification for 2045 and full carbon footprint certification for all service centers.

• Deployed advanced technologies such as IOWN, LEO satellites, and AIDC, achieving over 90% OneWeb LEO satellite coverage in Taiwan.

Financial highlights

• Q3 2024 revenue was NT$55.61 billion, up 3.6% year-over-year; net income declined 1% to NT$9.01 billion; EPS was NT$1.16.

• EBITDA for Q3 2024 was NT$21.26 billion, down 0.5% year-over-year, with an EBITDA margin of 38.23%.

• Free cash flow for the first nine months increased 8.7% year-over-year to NT$33.72 billion; CapEx declined 15.1% to NT$16.04 billion.

• Cash and cash equivalents totaled NT$31.22 billion as of September 2024.

• Operating income decreased 0.8% to NT$11.38 billion; operating margin at 20.5%.

Outlook and guidance

• Q3 and nine-month 2024 results outperformed or met guidance, with revenue, net income, and EPS exceeding internal forecasts.

• Management remains confident in continued value creation and sector leadership, supported by new management and advanced network initiatives.

• Strategic focus on high-margin products, operational efficiency, and expanding 5G and bundled services to drive future growth.