Chunghwa Telecom Co. Ltd.
) declared mixed financial results for the first quarter of 2014.
Quarterly total revenue came in at approximately $1,817 million,
recording a drop of 2.8% year over year. The first-quarter 2014
net income came in at around $336.6 million, up a considerable
10.9% year over year. Net earnings per ADR were 43 cents
compared with 40 cents in the year-ago quarter.
Quarterly operating income stood at $392.7 million, up 5.9%
year over year. Quarterly operating costs were $1,424 million, up
5.9% year over year. Operating margin was 21.6% compared with
19.8% in the year-ago quarter.
The first-quarter 2014 EBITDA was $668.9 million, up 13.7%
year over year. Quarterly EBITDA margin came in at 36.8% against
34% in the prior-year quarter. During the reported quarter,
Chunghwa generated around $320.1 million of cash from operations,
up 13.7% year over year. Capital expenditure was around $190.4
million, down 23.4% year over year.
Segment wise Revenue
The Mobile Communications segment accounted for approximately
$907.8 million of the total first-quarter 2014 revenue, down 1.4%
year over year. The Internet segment contributed $202.3 million,
up 1.9% year over year. The Domestic Fixed-line Communications
segment recorded $566 million in revenues, down 5% year over
year. The International Fixed-line Communications segment
generated $125.4 million, down 0.5% year over year. Other
Business registered the remaining $15.5 million, down 43.6% year
In the first quarter of 2014, Handset sales revenues stood at
$277.9 million, down 7.4% year over year. Internet VAS revenues
were $22.1 million, up 3.3% year over year.
Subscriber Statistics as of Mar 31, 2014
The total Broadband subscriber base was nearly 4.53 million,
out of which the FTTx subscriber base was around 2.99 million,
accounting for 66% of the total broadband subscriber base. 1.19
million Broadband subscribers signed up for 60Mbps or higher
speed connections, up 23.2% year over year. HiNet
subscriber base was 3.78 million, up 0.1% year over year.
Mobile subscriber base stood at 10.78 million, up 4.1% year
over year. Mobile Internet subscriber base was 4.29 million, up
by a significant 49.5% year over year. Chunghwa currently
commands 35.6% of the mobile Internet market share in Taiwan. In
the reported quarter, the company added a net of 1.42 million
mobile Internet subscribers. The International /Domestic
Fixed-line subscriber base stood at 11.51 million.
Fiscal 2014 Financial Guidance
Total revenue in fiscal 2014 is estimated at NT$228.23
billion, up 0.1% year over year. Operating costs and expenses are
projected to be NT$ 184.7 billion, up 2.4% year over year.
Operating income is likely to be NT$ 43.53 billion, down 8.5%
year over year. EBITDA is forecasted to be NT$ 77.1 billion, down
3.4% year over year. EBITDA margin is likely to be 33.8% compared
with 35% in fiscal 2013. Earnings per share are projected to be
NT$4.62, down 10.1% year over year.
Other Stocks to Consider
Currently, Chunghwa holds a Zacks Rank #3 (Hold). Other
better-ranked stocks in the telecom industry include
Shenandoah Telecommunications Co.
Nippon Telegraph and Telephone Corp.
). While Shenandoah carries a Zacks Rank #1 (Strong Buy), both
Nippon and BCE have a Zacks Rank #2 (Buy).
BCE INC (BCE): Free Stock Analysis Report
CHUNGHWA TELECM (CHT): Free Stock Analysis
NIPPON TELE-ADR (NTT): Free Stock Analysis
SHENANDOAH TELE (SHEN): Free Stock Analysis
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