Chunghwa Telecom (CHT) Q4 Earnings & Revenues Fall Y/Y

A generic image of money and a calculator
Credit: Shutterstock photo

Chunghwa Telecom Co. Ltd.CHT announced disappointing financial results in the fourth quarter of 2016. Quarterly total revenue was at approximately $1,834 million, down 3.7% year over year. Fourth-quarter net income came in at around $243 million, down 12.3% year over year. Net earnings per American Depository Share (ADS) were 31 cents, down 16.2% year over year.

Operating income was $311 million, down 12.7% year over year. Operating costs decreased 5.7% year over year to $1,506.6 million. Operating margin declined 17% from 18.2% in the year-ago quarter.

The fourth quarter of 2016 EBITDA was $566.5 million, down 7.9% year over year. Quarterly EBITDA margin came in at 35%, down from 36.2% in the prior-year quarter. During the reported quarter, Chunghwa generated around $1,053.5 million of cash from operations, up 15.7% year over year. Cash and cash equivalents as of 2016 increased 6% year-over-year to $1,007.6 million.

Chunghwa is the largest telecom operator in Taiwan. In future, management expects to enter into the mainland China telecom market where it will face intense competition from China Mobile Ltd. CHL , China Unicom (Hong Kong) Ltd. CHU and China Telecom Corp. Ltd. CHA . Chunghwa Telecom currently carries a Zacks Rank #5 (Strong Sell).

Segment-wise Revenues

The Mobile Communications segment accounted for approximately $891.4 million of the total fourth-quarter 2016 revenues, down 8.7% year over year. The Internet segment contributed around $239 million, increasing 9.4%. The Domestic Fixed-line Communications segment recorded $557.7 million in revenues, down 8.1%. The International Fixed-line Communications segment generated $108.3 million, down 8.8%. Other Business registered the remaining $35.8 million, down 43.2%.

In the fourth quarter of 2016, Mobile VAS (value added services) revenues grossed approximately $328.8 million, up 3.4% year over year, wherein mobile Internet VAS (largest contributor) revenues increased 4.8% year over year. Mobile voice revenues were decreased 12.3% to $279.5 million. Smart device sales revenues slumped 17.6% to $273.8 million.

Subscriber Statistics as of Dec 31, 2016

The total broadband subscriber base was over 4.473 million, out of which the FTTx subscriber base was around 3.48 million, accounting for 77.8% of the total broadband subscriber base. Over 1.14 million broadband subscribers signed up for 100 Mbps or higher speed connections, up 11.1% year over year. HiNet subscriber base totaled 3.76 million.

Mobile subscriber base was 10.79 million, down 3.5% year over year. Mobile Internet subscriber base was 6.85 million, up 14.8% year over year. 4G wireless subscribers base stands at 6.71 million. The International/Domestic Fixed-line subscriber base was 10.94 million.


For 2017, Chunghwa expects total revenue to increase 0.5% year over year to NT$231.16 billion. Operating costs are expected to increase 2.8% to NT$186.46. Income from operations is expected to be NT$44.66 billion, down 7.1% year over year. Non-operating income is estimated at NT$1.03 billion, reflecting a substantial 19.8% decline from 2016. Income before income tax and net income are expected to be NT$45.69 billion (down 7.4%) and NT$36.89 billion (down 7.8%), respectively. Earnings per share are expected to be NT$4.75. EBITDA is projected at NT$ 77.91 billion, down 3.3%. Capital expenditure is expected to rise a substantial 29% year over year to NT$30.28.

Chunghwa Telecom Co., Ltd. Price, Consensus and EPS Surprise

Chunghwa Telecom Co., Ltd. Price, Consensus and EPS Surprise | Chunghwa Telecom Co., Ltd. Quote

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks - absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Chunghwa Telecom Co., Ltd. (CHT): Free Stock Analysis Report

China Telecom Corp Ltd (CHA): Free Stock Analysis Report

China Unicom (Hong Kong) Ltd (CHU): Free Stock Analysis Report

China Mobile (Hong Kong) Ltd. (CHL): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics

Earnings Stocks

Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More