Chunghwa Telecom (2412) Q4 2023 earnings summary

Executive summary

• FY2023 revenue and EPS reached six-year highs; revenue, net income and EPS exceeded the high end of guidance.

• Q4 revenue grew 4.0% YoY, while reported operating income and net income declined; excluding one-time impairments, both increased.

Financial highlights

• Q4 revenue was NT$61.86bn (+4.0% YoY), operating income NT$10.45bn (-4.6%), attributable net income NT$8.26bn (-1.7%) and EPS NT$1.06 (-1.7%).

• FY2023 revenue was NT$223.20bn (+3.0%), operating income NT$46.35bn (-1.0%), attributable net income NT$36.92bn (+1.2%) and EPS NT$4.76 (+1.2%).

• Q4 EBITDA was NT$20.38bn (-2.2% YoY); FY EBITDA was NT$86.01bn (-0.3%).

• Excluding one-time impairments, Q4 operating income and attributable net income increased 2.2% and 7.2% YoY; FY operating income rose 0.6%.

• FY2023 operating costs and expenses rose 3.6% to NT$176.21bn.

Outlook and guidance

• FY2024 revenue guidance is NT$228.54–230.19bn (+2.4% to +3.1% YoY); operating costs and expenses are projected at NT$183.30–184.27bn (+4.0% to +4.6%).

• FY2024 operating income is projected at NT$45.23–46.50bn (-2.4% to +0.3%); net income at NT$35.66–37.20bn and EPS at NT$4.60–4.80.

• FY2024 EBITDA guidance is NT$85.67–86.95bn, with a 37.5%–37.8% margin versus 38.5% in 2023.

• FY2024 PP&E acquisition is forecast at NT$34.02bn; cash-basis capex guidance includes mobile NT$9.59bn (-14.0%) and non-mobile NT$24.43bn (+24.7%).