Chunghwa Telecom Co., Ltd. (NYSE:CHT)

First Quarter 2020 Financial Results

• Total revenue decreased by 6.2% to NT$ 48.15 billion.Chunghwa Telecom's total revenues for the first quarter of 2020 decreased by 6.2% to NT$ 48.15 billion.
  
• Basic earnings per share (EPS) was NT$1.07.

Mr. Chi-Mau Shieh, Chairman and CEO of Chunghwa Telecom, stated, "With the coronavirus outbreak, we have experienced a challenging start to 2020. We entered this crisis in a position of strength, and we were able to remain our leading market position in Taiwan. Although the pandemic had a negative impact on our enterprise business and international roaming revenue during the quarter, it brought growth opportunities for our emerging businesses and IPTV/MOD services."

"In the first quarter, both MOD subscriber numbers and revenue increased year over year. We continued to enrich our IPTV/MOD service by introducing more attractive content, and with more than 2.08 million subscribers as of March 31, 2020, remaining the largest video platform in Taiwan. In our broadband business, we continued to encourage our subscribers to migrate to higher-speed fiber plans, and as of the end of March, the number of subscribers signing up for a connection speed of 300Mbps or higher increased by 82.6% year over year, and we expect to maintain this growth in the future. Moreover, we were glad to see that our in-house developed services further drove the increase in streaming revenue in our ICT business."

"As the COVID-19 pandemic continues worldwide, we are doing our utmost to protect the health and safety of our employees and customers. While continuing to monitor the fluid situation, we remain focused on our long-term growth strategy and leveraging our core strengths to maintain market leadership. We believe that, with our leading 5G spectrum resources, cutting-edge ICT technology, and strong market position, we will maintain our ability to deliver sustainable value for our shareholders."

Fourth Quarter 2019 Financial Results

• Total revenue decreased by 0.5% to NT$55.23 billion.
• Basic earnings per share (EPS) was NT$1.01.

Mr. Chi-Mau Sheih, Chairman and CEO of Chunghwa Telecom, stated, "During the fourth quarter of 2019, we not only maintained our leading market position but also saw a slight uptick in market share in terms of both mobile revenue and subscriber number, which we believe a solid foundation for the upcoming 5G service development. Our fixed broadband ARPU also increased, where subscribers continued to migrate to higher-speed fiber services. Another driver of growth this quarter was in MOD business, where our highest-priced package of our free-to-choose-channel plans remained the most popular choice. ICT business revenue increased and back to growth trajectory as well due to recognition of some large projects and we see streaming revenue from ICT projects continued to grow."

"We believe we are well positioned to capture the growth opportunities of 2020. The first phase of the 5G spectrum auction was completed recently, and we plan to launch 5G services in the third quarter of 2020. In our fixed broadband business, we will maintain our strategy of migrating customers to higher speed services to capture incremental ARPU. In IPTV, we will continue to leverage popular sporting events, such as the upcoming Tokyo Olympic Games, to grow both subscriptions and revenue. Finally, in ICT, we remain committed to expanding our in-house developed services, which we believe will continue to grow as a healthy contributor to our consolidated revenue in 2020. Going forward, we remain focused on investing in our core businesses and on leveraging our competitive advantages to generate shareholder value." concluded Mr. Sheih.

2020 Guidance

For 2020, the Company expects total revenue to increase by 3.2~3.7%, to NT$214.10~NT$215.29 billion as compared to the un-audited consolidated total revenue of 2019. Operating costs and expenses are expected to increase by 5.3%~5.5%, to NT$175.51~NT$175.83 billion as compared to the prior year.  Income from operations is expected to decrease by 5.3%~1.1% to NT$38.54~NT$40.25 billion, year over year. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$39.38~NT$41.28 billion and NT$30.91~NT$32.47 billion, respectively. Basic earnings per share is expected to be NT$3.99~NT$4.19. Acquisition of Material Assets in 2020 is expected to increase by NT$52.54 billion to NT$81.26 billion as compared to the prior year.

TAIPEI, Jan. 21, 2020 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its guidance for 2020 on a consolidated basis. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs").

Mr. Chi-Mau Sheih, Chairman and CEO of Chunghwa Telecom, stated, "In 2020, we believe we are well positioned to capture the growth opportunities. The leading market position of our mobile business provides us with a strong foundation for the upcoming deployment of 5G. The first phase of the 5G spectrum auction was completed recently, and we plan to launch 5G services in the third quarter of 2020. In our broadband segment, we will maintain our strategy of migrating customers to higher speed services to capture incremental ARPU. In IPTV, we will continue to leverage popular sports events, such as the upcoming Tokyo Olympic Games, to grow both subscriptions and revenue, which we expect to be further supported by increasing advertisement revenue in line with our growing subscriber base. Finally, in ICT, we remain committed to expanding our in-house developed services to demonstrate our ICT capabilities and expect the overall ICT revenue continue to increase as a meaningful driver to consolidated revenue. Going forward, we remain focused on investing in our core businesses and on leveraging our competitive advantages to generate shareholder value."

For 2020, the Company expects total revenue to increase by NT$ 6.58~NT$7.77 billion, or 3.2%~3.7%, to NT$214.10~NT$215.29 billion as compared to the un-audited consolidated total revenue of 2019. The increase in revenue is expected to be driven by increases in ICT project revenues, Application VAS revenues, handset sales revenue and MOD revenues, which are expected to offset the decrease in voice revenue resulted from continuing VoIP substitution and the decline of mobile service revenue owing to market competition.

Operating costs and expenses for 2020 are expected to increase by NT$ 8.77~NT$9.09 billion, or 5.3%~5.5%, to NT$175.51~NT$175.83 billion as compared to the prior year. The increase is expected to be attributable to the increase of ICT project costs, cost of goods sold and amortization expense of 5G concession and related costs following the launch of 5G services.

Income from operations is expected to decrease by NT$ 2.16~NT$0.45 billion, or 5.3%~1.1%, year over year. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$39.38~NT$41.28 billion and NT$30.91~NT$32.47 billion, respectively, representing year-over-year decreases of NT$2.40~ NT$0.50 billion and NT$1.90~ NT$0.34 billion, respectively. Net earnings per share for 2020 is expected to decrease by NT$0.24~NT$0.04 to NT$3.99~NT$4.19, as compared to the prior year.

Acquisition of Material Assets in 2020 is expected to increase by NT$52.54 billion as compared to the prior year, which is expected to be attributable to the acquisition of 5G licenses, the expansion of 5G network, strategic investments in IP-based Public Switched Telephone Network and the upgrade of MOD platform and the increase of related equity investments led by the expansion of our business deployment.   

Third Quarter 2019 Financial Results

• Total revenue decreased by 3.5% to NT$ 50.85 billion.
• Basic earnings per share (EPS) was NT$1.04.

Mr. Chi-Mau Sheih, Chairman and CEO of Chunghwa Telecom, stated, "We are glad to see that the overall mobile market was relatively stable during the third quarter, which helped us maintain our leading position by both mobile revenue and market share in Taiwan. Attributable to the launch of the iPhone 11 and certain popular mobile plans, the number of net new users turned positive, and the number of subscribers who signed up for NT$999 or higher-priced bundle plans increased significantly. In our broadband business, revenue dropped slightly due to a decrease in the number of total broadband subscribers, which was partially offset by our customers' continued migration to higher-speed fiber services. The impact of the subscriber decrease was further mitigated by our broadband and MOD bundled package, which enhanced customer stickiness. "

"Our MOD/IPTV business continued to outperform during the quarter. We remained the largest video platform in Taiwan, reaching 2.09 million subscribers, and IPTV revenue reached NT$902 million, representing a 5.9% increase year over year. With our free-to-choose channel package plan, which was launched in September, 75% of these new users chose the highest-priced package, and we expect that the revenue contribution will be reflected in the fourth quarter. As we move forward, in order to further enhance overall MOD/IPTV performance, we will continue enriching our content by introducing OTT services and popular sports events such as the upcoming Tokyo Olympic Games. As for our ICT business, both enterprise customer revenue and ICT revenue increased year over year in the third quarter due to our constant efforts of enhancing ICT initiatives and project acquisitions. We are delighted to announce that we once again obtained the AMI project from the Taiwan Power Company during the quarter to strengthen our IoT deployment and the long-term revenue creation. Going forward, despite intense competition, we are confident that we will be able to maintain our leading position in the industry by providing excellent services, and we will continue our investment in our core businesses."

Second Quarter 2019 Financial Results

• Total revenue decreased by 6.6% to NT$ 50.11billion.
• Basic earnings per share (EPS) was NT$1.10.

Mr. Chi-Mau Shieh, Chairman and CEO of Chunghwa Telecom, stated, "Even though the market remained competitive during the second quarter of 2019, we were able to maintain our leading position in terms of mobile revenue and subscriber number in Taiwan. To offset the down-sell triggered by the 499 plan last year, we continued to migrate our subscribers to higher value plans, and we saw continuous increase of iPhone users. In our broadband business, we experienced a slight subscriber loss in the first half of this year due to cable competition. However, we also noticed that our subscribers continued to migrate to higher-speed fiber services. Going forward, we will remain focused on providing multi-service, home-centric digital plans to attract more subscribers."

"This was another robust quarter for our MOD/IPTV business. We continued to be the largest video platform in Taiwan, reaching 2.08 million subscribers. We also introduced a flexible package plan, which allows our customers to make their own packages fully based on their preferences, and expect to help us further increase our subscriber base, enhance current customer stickiness, and differentiate ourselves from our competitors. To seek more opportunities and to maximize revenue in our ICT business, we will focus on selected verticals. We have acquired several Fintech projects in the financial industry to leverage our advantages in the IDC and information security business, and we aim to develop our AI- and IoT-related capabilities to enhance overall ICT performance. We are confident in the strength of our business and our ability to further fuel our sustainable development for our shareholders in the years to come," Mr. Shieh concluded.

Second Quarter 2019 Financial Results

• Chunghwa Telecom's total revenues for the second quarter of 2019 decreased by 6.6% to NT$ 50.11 billion.
• Basic earnings per share (EPS) was NT$1.10.

Mr. Chi-Mau Shieh, Chairman and CEO of Chunghwa Telecom, stated, "Even though the market remained competitive during the second quarter of 2019, we were able to maintain our leading position in terms of mobile revenue and subscriber number in Taiwan. To offset the down-sell triggered by the 499 plan last year, we continued to migrate our subscribers to higher value plans, and we saw continuous increase of iPhone users. In our broadband business, we experienced a slight subscriber loss in the first half of this year due to cable competition. However, we also noticed that our subscribers continued to migrate to higher-speed fiber services. Going forward, we will remain focused on providing multi-service, home-centric digital plans to attract more subscribers."

"This was another robust quarter for our MOD/IPTV business. We continued to be the largest video platform in Taiwan, reaching 2.08 million subscribers. We also introduced a flexible package plan, which allows our customers to make their own packages fully based on their preferences, and expect to help us further increase our subscriber base, enhance current customer stickiness, and differentiate ourselves from our competitors. To seek more opportunities and to maximize revenue in our ICT business, we will focus on selected verticals. We have acquired several Fintech projects in the financial industry to leverage our advantages in the IDC and information security business, and we aim to develop our AI- and IoT-related capabilities to enhance overall ICT performance. We are confident in the strength of our business and our ability to further fuel our sustainable development for our shareholders in the years to come," Mr. Shieh concluded.

TAIPEI, Taiwan, May 8, 2019 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today announced that, due to the promotion of the former President Mr. Chi-Mau Sheih to Chairman & CEO of the Company, the board of directors has appointed Mr. Shui-Yi Kuo, Chief Financial Officer and Senior Executive Vice President, as the new President of the Company, effective today. Mr. Kuo will remain Chief Financial Officer until a successor has been identified. In addition, because the current internal auditing officer, Mr. Fu-Kuei Chung, retires on June 30, 2019, the board of directors has appointed Mr. Min-Gume Cheng, current vice president of the Data Communication Business Group, as his successor.

Chunghwa's new President, Mr. Shui-Yi Kuo, has been with the Company since 2001. Prior to Chunghwa, he served in the auditing and business consulting group at Arthur Anderson Taiwan. Since his time at Chunghwa, Mr. Kuo has served as special assistant to the Chairman and assisted in the design of employee incentive plans, such as the Employee Stock Ownership Trust, during the privatization of the Company. He also served as Assistant Vice President of the planning development and investment department, Vice President of the accounting department, President of Chunghwa's subsidiary Light Era, Vice President and President of the investment department, Senior Executive Vice President of Investment and Chief Financial Officer. Mr. Kuo has extensive experience in the business operations, finance, and performance management of Chunghwa's strategic investment companies, and been in responsible for the spin-offs of Chunghwa Precision Test Tech. Co., Chunghwa Leading Photonics Tech and CHT Security, as well as the public listings on TPEx of subsidiaries Chief Telecom and KingwayTek Technology.

Chunghwa's new internal auditing officer Mr. Min-Gume Cheng has been with the Company since 1982 where he has served as Vice President of the human resources department, Vice President of the Mobile Communication Business Group, and Vice President of the Data Communication Business Group, where he gained extensive experience in administrative and technical management. Mr. Cheng's prudent and rigorous work ethic is well suited for supervising the execution of the auditing process and creating value for the Company and shareholders alike.

Chunghwa Chairman Mr. Sheih commented that he has full confidence in the professional competence and execution capabilities of the Chunghwa Telecom team to execute the Company's strategic transformation plan and laying a strong foundation for the Company's long-term growth.

Mr. Sheih and Mr. Kuo both have long tenures at Chunghwa Telecom and are internally promoted professional managers. Their extensive knowledge in telecom business and technologies, and in accounting and corporate finance, complement each other well and will provide a smooth management transition. In the backdrop of decreasing operating profits, global telecom companies are actively seeking additional growth momentum through business partnerships, M&A, and other investments. The Company remains confident that under the leadership of Mr. Sheih and Mr. Kuo, Chunghwa Telecom will continue to excel in the coming wave of 5G competition and further solidify its leading position in the domestic telecom industry.

First Quarter 2019 Financial Results

• Total revenue decreased by 4.3% to NT$51.33 billion.
• Basic earnings per share (EPS) was NT$1.08 vs last years basic earnings per share (EPS) of NT$1.13.

Mr. Chi-Mau Shieh, Chairman and CEO of Chunghwa Telecom, stated, "During the first quarter of 2019, our operating income, net income and EPS met guidance thanks to strengths in our emerging business and core business. In the mobile sector, while other service providers rolled out low-price unlimited mobile data plans, we were able to maintain both stable pricing as well as market share in terms of mobile revenue and subscriber base. We continued to migrate our customers to higher price plans, and we saw the continuation of subscribers migrating to higher-speed fiber services in our broadband business as well. We launched our smart speakers last week, which enables our customers to enjoy smart home and other AI related services while further increasing their stickiness to our network."

"This was another robust quarter for our MOD business. We continued to be the largest video platform in Taiwan with more than 2 million subscribers. In January, our regulator approved us to freely package MOD channels in order to meet customer demand, which we believe benefits our business in the long term. Our ICT services revenue also grew, and we are fully prepared and optimistic for the upcoming 5G service launch. Above all, we remain committed to leveraging our core strengths and market advantages to maximize value to our shareholders in the face of potential changes to the competitive landscape. To take our business to the next level and to return to a growth trajectory, we rolled out a customer-centric value creation transformation plan this year to strengthen our core businesses, deploy emerging services, optimize our cost structure, and further enhance our fundamentals, which include a next generation network, IT infrastructure, and human resource planning. We believe strongly in our business, our strategy, and ability to execute." Mr. Shieh concluded.

Fourth Quarter 2018 Financial Results

• Total revenue decreased by 8.9% to NT$55.46 billion.
• Basic earnings per share (EPS) was NT$1.09 vs last years NT$1.12.

Mr. Yu Cheng, Chairman and CEO of Chunghwa Telecom, stated, "Competition in the overall market for the fourth quarter of 2018 remained intense, but we were pleased to see successful consolidation of our customer base in major segments. In our mobile business, we kept our leading market position in mobile subscribers and mobile revenue with market share of 36.3% and 37.8%, respectively. To maximize growth of mobile subscribers and mobile revenue, we will offer diversified rate plans and product portfolio to satisfy differing customer demands and encourage greater sign-ups of higher price plans in 2019. For the broadband and the MOD segment, we also maintained our leading market position in Taiwan with 4.5 million and more than 2 million subscribers respectively in the fourth quarter. We expect continued growth of MOD subscribers with our high quality content, such as the exclusive Netflix 4K streaming introduced in January."

"In 2019, we aim to enhance overall business performance by making our research, sales and service distribution more efficient. In particular, we expect our ICT business will rebound as we develop more ICT-focused solutions with our advantages in capabilities of cloud operations, big data analysis, and block-chain technologies. We also aim to further expand our IDC business, which reported an increase in revenue and traffic volume in 2018, by continuing the third phase of construction of the highest rated data center in Banqiao. We remain committed to diversifying our growth drivers and solidifying our industry leadership in 2019 and in the years to come," Mr. Cheng concluded.

2019 Guidance

For 2019, the Company expects total revenue to increase by 2.4~3.5%, to NT$220.56~NT$222.91 billion as compared to the un-audited consolidated total revenue of 2018. Operating costs and expenses are expected to increase by 3.4%~3.7%, to NT$177.84~NT$178.25 billion as compared to the prior year. Income from operations is expected to decrease by 2.1%~ increase by 2.3% to NT$42.69~NT$44.63 billion, year over year. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$43.82~NT$45.76 billion and NT$34.11~NT$35.68 billion, respectively. Basic earnings per share is expected to be NT$4.40~NT$4.60. Acquisition of Material Assets in 2019 is expected to increase by NT$4.64 billion as compared to the prior year.

TAIPEI, Taiwan, Jan. 29, 2019 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412,NYSE: CHT) ("Chunghwa" or "the Company") today reported its guidance for 2019 on a consolidated basis. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs").

Mr. Yu Cheng, Chairman and CEO of Chunghwa Telecom, stated, "Despite intense competition in the overall market in 2018, we saw successful consolidation of our customer base in major segments. In 2019, we aim to enhance overall business performance by making our research, sales and service distribution more efficient and we are confident in our ability to maintain our strong growth momentum. In our mobile and broadband businesses, we will continue to pursue our proven strategy of guiding subscribers to higher-end plans and further improve margins. In the IPTV space, we will continue to grow our subscriber base and introduce high quality content to further enhance revenues. Furthermore, as we continue to leverage our advantage on network infrastructure, cloud technologies and big data analysis, as well as IoT platform deployment, we expect additional growth and opportunities in our ICT business. Though we face intense competition, we take the opportunity of industry tailwinds and favorable policies to establish competitive advantages to generate sustainable stakeholder value."

For 2019, the Company expects total revenue to increase by NT$ 5.10~NT$7.45 billion, or 2.4%~3.5%, to NT$220.56~NT$222.91 billion as compared to the un-audited consolidated total revenue of 2018. The increase in revenue is expected to be driven by increases in ICT project revenues, Application VAS revenues, and MOD revenues, which are expected to offset the decrease in voice revenue resulted from continuing VoIP substitution and the decline of mobile service revenue owing to market competition.

Operating costs and expenses for 2019 are expected to increase by NT$ 5.90~NT$6.31 billion, or 3.4%~3.7%, to NT$177.84~NT$178.25 billion as compared to the prior year. The increase is expected to be attributable to the increase of ICT project costs.

Income from operations is expected to decrease by NT$ 0.93 billion, to an increase by NT$1.01 billion, or -2.1%~2.3%, year over year. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$43.82~NT$45.76 billion and NT$34.11~NT$35.68 billion, respectively. Net earnings per share for 2019 is expected to be NT$4.40~NT$4.60.

Acquisition of Material Assets in 2019 is expected to increase by NT$4.64 billion as compared to the prior year, which is expected to be attributable to the increase of related equity investments led by the expansion of our business deployment. Disposal of Material Assets is expected to be driven by the disposal of common shares of China Airlines.  

First Quarter 2018 Financial Results

• Total revenue decreased by 1.7% to NT$53.63 billion.
• Basic earnings per share (EPS) was NT$1.13.

Mr. Yu Cheng, Chairman and CEO of Chunghwa Telecom, stated, "The first quarter of 2018 was a highly competitive quarter, resulting in a slight decrease in revenues year over year. However, we are pleased with our operational progress, which establishes a firm foundation for a robust year ahead. Our solid market leading position is underscored by a 36.3% market share in mobile subscribers and a 37.9% market share in mobile revenue. At the same time, we maintained the lowest mobile service revenue decline among three major telecoms in Taiwan despite an increasingly competitive landscape."

"We are also pleased with solid progress in our other segments. In broadband business, the subscriber net-adds turn positive for the first quarter of 2018, which is encouraging. The number of users signing up for, or upgrading to, connection speeds of 100Mbps or higher grew by 10.7% year over year to 1.32 million in the first quarter as a result of broadband subscribers consistently migrating to our higher-speed, higher-value fiber services. Furthermore, our IPTV/MOD platform became the largest video platform in Taiwan in the first quarter with 1.7 million subscribers, representing a 27.4% increase year over year, driving a 25.2% year-over-year growth in IPTV revenue. We look forward to further growing this segment by facilitating the overall TV operational environment and leveraging popular contents, such as international sport events, including eSport."

"Going forward, we remain focused on market share consolidation and margin expansion to meet the guidance. With our competitive advantages in network infrastructure, IDC, and CDN, which are the fundamentals to drive innovative services in the digital economy, we will be able to further consolidate our market leading position." Mr. Cheng concluded.

TAIPEI, Taiwan, Jan. 30, 2018 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its guidance for 2018 on a consolidated basis. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs").

Mr. Yu Cheng, Chairman and CEO of Chunghwa Telecom, stated, "We are pleased with our strong solid financial and operating performance in 2017, during which our full year income from operations, net income and EBITDA exceeded guidance. In 2018, although we expect to continue to face intense competition, we are confident in our ability to maintain our strong growth momentum. In our mobile and broadband businesses, we will continue to pursue our proven strategy of guiding subscribers to higher-end plans and further improve margins. In the IPTV space, we will continue to grow our subscriber base and enrich digital content to further enhance revenues. Furthermore, as we continue to leverage our advantage on network infrastructure, IDC and CDN, as well as IoT platform deployment, we expect additional growth and opportunities in our ICT business. Though we face intense competition, we take the opportunity of industry tailwinds and favorable policies to establish competitive advantages to generate sustainable stakeholder value. "

For 2018, the Company expects total revenue to increase by 1.7~2.4% to NT$231.47~NT$232.97 billion as compared to the un-audited consolidated total revenue of 2017. The increase in revenue is expected to be driven by increases in ICT project revenues, smart device sales, mobile VAS revenues, and IPTV revenues, which are expected to offset a decrease in voice revenue.

Operating costs and expenses for 2018 are expected to increase by 0.7%~1.9% to NT$182.07~NT$184.24 billion as compared to the prior year. The increase is expected to be attributable to the growth of ICT projects, smart device sales, mobile value-added services, and the IPTV business. Expenses associated with the adjustment of employees' compensation and 4G license amortization expenses are also expected to increase.

Income from operations is expected to increase by NT$ 0.44~NT$4.11 billion, or 0.9%~8.8%, year over year. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$48.11~NT$51.89 billion and NT$37.25~NT$40.31 billion, respectively. Net earnings per share for 2018 is expected to be NT$4.80~NT$5.20.

Capex for the acquisition of property, plant and equipment in 2018 is expected to increase by NT$6.05 billion to NT$33.06 billion as compared to the prior year, which is expected to be attributable to the enhancement of FTTx coverage and mobile network quality. Disposal of Material Assets is expected to be driven by the disposal of common shares of China Airlines.  

Second Quarter 2017 Financial Results

• Total revenue decreased by 0.9% to NT$55.67 billion.
• Basic earnings per share (EPS) was NT$1.35.

Mr. Yu Cheng, Chairman and CEO of Chunghwa Telecom, stated, "The second quarter of 2017 was another quarter of stable financial and operating performance, during which we experienced in-line revenue and better-than-expected profits. In our mobile business, we maintained our leadership position with 37.3% market share in mobile subscribers and 37.2% market share in mobile revenue, as well as the lowest churn rate in the market. Additionally, we effectively executed our strategy to enhance subsidy efficiency by re-allocating resources to guide mobile subscription toward high-end plans with the goal of increasing the number of new, high-end customers and ARPU. In our broadband segment, we were encouraged to experience a small quarter-over-quarter increase in the number of broadband subscribers. We remain focused on strengthening our high speed service adoption and have bundled the high-quality IPTV service that will carry OTT service in the near future to drive subscriber growth. Additionally, we continued to showcase applications developed on our IoT platform in smart cities projects in Taiwan. Going forward, we remain committed to building upon our competitive advantages, offering reliable, customized and comprehensive ICT solutions to our enterprise customers and establishing a comprehensive ecosystem in this sector."

Mr. Cheng continued, "While there were challenges in the market, we remain confident in our ability to solidify our market leadership position and create incremental shareholder value. Looking ahead, we will continue to leverage our expertise in cutting-edge communications technology, our deep marketing resources, as well as our effective operational strategies and strong execution capabilities to strengthen our user acquisition, diversify our product offerings and develop new initiatives in our innovative business lines."

Fourth Quarter 2016 Financial Results

• Total revenue decreased by 6.2% to NT$58.35 billion.
• Basic earnings per share (EPS) was NT$1.00

Mr. Yu Cheng, Chairman and CEO of Chunghwa Telecom, stated, "We continued to see stable financial and operating performance in the fourth quarter and full year of 2016. In our mobile business, we defended our market leading position with 10.8 million mobile subscribers as of the end of 2016, or 37.3% market share, despite the fierce competition in this arena. We managed to maintain the lowest customer churn rate, primarily attributable to our entire team's streamlined marketing efforts. Furthermore, our ICT business witnessed strong growth momentum with a 42% year-over-year increase in revenue for information security and cloud service as well as a 43% increase in IoT service revenue for the full year 2016."

Mr. Cheng continued, "Looking ahead, we expect total revenues for the full year of 2017 to increase to NT$231.16 billion, mainly driven by growth in mobile value-added services, smart device sales and our enterprise ICT business. As the intense competition in the industry is expected to continue, we will further streamline our marketing activities, strengthen diversified digital convergence services, as well as develop new opportunities in innovative business lines, including ICT, IoT and MOD/OTT. We believe we are on the right track to fortify our market leading position and drive further growth and value to our stakeholders."

TAIPEI, Taiwan, Jan. 24, 2017 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its guidance for 2017 on a consolidated basis. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs").

Mr. Yu Cheng, Chairman and CEO of Chunghwa Telecom stated, "We continued to experience stable financial and operating results for the full year of 2016. Looking at 2017, although we expect to continue facing intense competition, we are confident in maintaining our market leadership in all major business lines and further foster innovative service offerings for both retail and enterprise customers. For the full year 2017, we expect total revenues to increase year over year. For our mobile business, we will continue to streamline and optimize our marketing activities as well as reinforce subscriber retention. For our broadband business, by leveraging our big data analysis capability and offering diversified digital convergence services, we can further enhance our users' experience and stickiness. Meanwhile, we see great opportunities for our ICT business in 2017 with the growing ubiquity of IoT and aim to boost its development by capitalizing on our market superiority in integrated network infrastructure, IDC and CDN capabilities. By leveraging the government's digital content economy development policy and relaxation of relevant regulations, we will continue to enrich diversified digital content as well as enhance our MOD platform functionality. As we execute upon our marketing and business development strategies during 2017, we remain committed in realizing continued growth and value for our stakeholders going forward."

For 2017, the Company expects total revenue to increase by NT$1.15 billion, or 0.5%, to NT$231.16 billion as compared to the un-audited consolidated revenue of 2016. The increase in revenue is expected to be mainly driven by the expansion of mobile value added service, smart device sales, and enterprise ICT business. Although voice revenue will decline in 2017 due to VoIP substitution and market competition, the Company is confident that it will be offset by the revenue contribution from its above mentioned growth businesses.

Operating costs and expenses for 2017 are expected to increase by NT$5.00 billion, or 2.8%, to NT$186.46 billion as compared to the prior year. The increase is mainly attributable to the expansion of ICT projects, mobile Internet services, value-added services and smart device sales. Expenses associated with the enhancement of digital content and 4G license amortization expenses are also expected to increase.

Income from operations is expected to decrease by NT$ 3.40 billion, or 7.1%, year over year. Non-operating income is expected to decrease by NT$0.25 billion year over year, mainly due to the decline in interest income and other income. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$45.69 billion and NT$36.89 billion, respectively, representing decrease of NT$3.65 billion and NT$3.14 billion, respectively. Net earnings per share for 2017 is expected to decrease by NT$0.41 to NT$4.75, as compared to the prior year.

Capex for acquisition of property, plant and equipment in 2017, including deferred projects from 2016, is expected to increase by NT$6.80 billion to NT$30.28 billion as compared to the prior year. The Company will focus on the enhancement of fiber broadband network construction as well as the expansion of mobile network.

Third Quarter 2016 Financial Results

• Total revenue increased by 4.2% to NT$58.52 billion.
• Basic earnings per share (EPS) was NT$1.24

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "We are glad to report top-line growth of 4.2% year-over-year for the quarter. Our mobile business retained its leading market position with 6.23 million 4G subscribers as of September 30th, and over 37% market share for overall mobile subscribers, despite the increased market competition in Taiwan. Additionally, our channel marketing efforts helped us maintain the lowest postpaid subscriber churn rate among our peers. We are confident in our mobile strategy. By introducing the Big 4G plan two quarters ago, we helped the market move towards tiered pricing plans, and we expect the market to return to the growth territory eventually. In our ICT business, we continued to witness strong growth in the third quarter, supported by our competitive advantages in network infrastructure, IDC and CDN. Our highest-rated cloud IDC is also enabling us to further expand IDC business opportunities and to boost our development in this segment."

Dr. Tsai continued, "In the third quarter, although we continued to experience the increased competition, we believe we are on the right track to further develop our business. By continuing to execute our highly effective marketing and business expansion strategies, and by leveraging our vast integrated telecom network, we are confident we can maintain our market leadership position in all of our major businesses."

Second Quarter 2016 Financial Results

• Total revenue decreased by 1.3% to NT$56.20 billion
• Basic earnings per share (EPS) was NT$1.43

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "Continued focus on streamlining our expansion efforts, operations and expense controls enabled us to outperform our guidance for operating income, net income and EPS during the second quarter of 2016. Our mobile internet revenue grew by 6.6% year over year, as our 4G subscriber base expanded to 5.7 million as of the end of June. Additionally, our competitive advantages in offering scalable, reliable, and comprehensive ICT solutions to enterprise customers, resulted in continued solid enterprise adoption of our ICT services during the quarter."

Dr. Tsai continued, "Moving forward, we will continue to execute upon our expansion strategies surrounding our core growth areas including 4G adoption, ICT expansion, and enterprise cloud growth in Taiwan. In addition to the introduction of the Big 4G plans in April, we are focusing more on channel marketing to retain customers and increase their contribution. Lastly, we are extremely proud to have begun operation at our CHT Taipei IDC, one of the four highest-rated data centers in the world. This cutting-edge IDC will significantly strengthen CHT's cloud-based business capabilities by connecting Asia Pacific companies looking for high-speed, reliable data access connections to the rest of the world. We are confident that these new initiatives will continue to strengthen our leadership position and further boost our growth momentum going forward."

First Quarter 2016 Financial Results

• Total revenue increased by 0.8% to NT$56.94 billion 
• Basic earnings per share (EPS) was NT$1.50

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "Chunghwa Telecom continues to make solid strides in growing our 4G, ICT and enterprise businesses, as well as maintaining control of our operational costs and expenses, as evidenced by our financial and operating results in the first quarter of 2016. First, we were able to boost our profitability at a faster pace than our peers, with EPS increasing by 11.9% year over year. Second, on the mobile side, we grew mobile internet revenue by 8.7% year over year, and accumulated 5.21 million 4G subscribers by the end of the first quarter, propelling our market share to reach 38.6%. In addition, we led the way in deploying our 2.6G frequency band on March 24, and on top of that we also launched the new Big 4G promotion plans to cater to demands of a wide spectrum of customers from high-to low-end. We believe these initiatives will help us to improve data speeds and attract additional mobile internet customers."

Fourth Quarter 2015 Financial Results

• Total revenue increased by 4.3% to NT$62.22 billion
• Basic earnings per share (EPS) increased 17.3% to NT$1.22

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "We are pleased with our strong financial and operating results for the full year of 2015, owing to our entire team's solid execution of our expansion strategies surrounding the 4G, ICT, and enterprise businesses. Consolidated revenues reached the highest point in our company's history, and EPS saw its best performance since 2012. Additionally, we accumulated 4.4 million 4G subscribers by the end of 2015, bringing our market share to 38.2%, and we expect to add another 2 million 4G subscribers in 2016. Despite numerous headwinds in the broadband business such as intensifying cable competition and 4G substitution, we managed to grow ARPU and increase revenues by upgrading subscribers to higher speed services."

Dr. Tsai continued, "Our focus for 2016 will remain on expanding 4G, value-added and ICT services through leveraging our advantages as an integrated telecom services provider. We will continue to fortify our market leading position among Taiwanese mobile service providers through implementing our carrier aggregation ("CA") technology, which is supported by our acquisition of the 30 MHz 2.6G paired spectrum in December 2015. Supported by our comprehensive network infrastructure, marketing resources and R&D capacity, we are confident in our ability to maintain our leading market position in all our major businesses and boost growth momentum in 2016."

2016 Guidance

For 2016, the Company expects total revenue to increase by NT$1.70 billion, or 0.7%, to NT$233.49 billion as compared to the prior year. Operating costs and expenses are expected to increase by NT$4.23 billion, or 2.3%, to NT$185.53 billion as compared to the prior year. Income from operations is expected to be NT$47.75 billion. Non-operating income is expected to be NT$1.09 billion. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$48.84 billion and NT$39.98 billion, respectively. Earnings per share are expected to be NT$5.15. CAPEX including the 2015 deferred projects is expected to increase by NT$5.55 billion to NT$30.63 billion as compared to the prior year.

TAIPEI, Taiwan, January 27, 2016 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its guidance for 2016 on a consolidated basis. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs").

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "We are pleased to report impressive operating results for 2015. We will continue to strive to further enhance our performance in future periods. Entering into 2016, we will continue focusing on 4G, value-added and ICT services. We expect to add 2 million additional 4G subscribers and expand our ICT business by leveraging our advantages as an integrated telecom service provider. With our comprehensive network infrastructure, marketing resources and R&D capacity, we are confident that we will continue to maintain our leading market position in all our major businesses and boost growth momentum in 2016."

For 2016, the Company expects total revenue to increase by NT$1.70 billion, or 0.7%, to NT$233.49 billion as compared to the un-audited consolidated revenue for 2015. Expected increases in revenue are due to the on-going growth of mobile Internet and mobile value-added customers, expansion of the ICT business and continual migration of fixed broadband customers. Increased revenue contribution from these growing businesses is expected to offset the projected decrease in voice service revenue attributed to VoIP substitution and market competition.

Operating costs and expenses for 2016 are expected to increase by NT$4.23 billion, or 2.3%, to NT$185.53 billion as compared to the prior year. Expenses associated with expanding mobile Internet services, ICT projects and value-added services are expected to increase. Amortization expenses primarily resulting from the 4G license acquisition are also expected to increase.

Income from operations is expected to decrease by NT$ 2.64 billion, or 5.2%, year-over-year. Non-operating income is expected to decrease by NT$0.51 billion year-over-year mainly due to declines in investment income under the equity method and other income. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$48.84 billion and NT$39.98 billion, respectively, representing decreases of NT$3.15 billion and NT$2.84 billion, respectively. Earnings per share for 2016 is expected to decrease by NT$0.37 to NT$5.15, as compared to the prior year.

Acquisition for property, plant and equipment in 2016, including the 2015 deferred projects, is expected to increase by NT$5.55 billion to NT$30.63 billion as compared to the prior year. However, due to the Company's acquisition of the 2500MHz/2600MHz frequency band license at the cost of NT$9.96 billion in 2015, total spending in 2016 for acquisitions of material assets is expected to be NT$4.44 billion lower than that in 2015.

Third Quarter 2015 Financial Results

• Total revenue increased by 0.1% to NT$56.18 billion
• Basic earnings per share (EPS) was NT$1.52

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom commented, "In the third quarter, we maintained our strong momentum, with total revenues, operating income, and EPS all increasing year over year and outperforming our guidance. Supported by our successful promotional packages, our 4G subscriber base reached 3.56 million by the end of September, and we expect that figure to continue on its upward trajectory and exceed 4.2 million by year-end. The iPhone 6s' launch earlier this month supports our top-line growth and mobile subscriber expansion; however it also increases related expenses. Despite this expected margin impact, we remain confident in outperforming our full-year guidance."

Dr. Tsai continued, "We are currently evaluating the technology and investment efficiency for the 2.6G spectrum in advance of the auction expected to begin in November. In doing so, we hope to acquire the band which most benefits our operation and enable us to offload heavy traffic in metropolitan areas, further supporting our market-leading mobile network capabilities. Going forward, we will continue to focus on improving our network capability and customer satisfaction by strengthening customer service, offering affordable and integrated packages and increasing the speed and reliability of our network."

Second Quarter 2015 Financial Results

• Total revenue increased by 2.0% to NT$56.92 billion 
• Basic earnings per share (EPS) was NT$1.44

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom commented, "We are excited to report robust operational and financial results for the second quarter of 2015, with total revenues, operating income, pretax income, net income, and earnings per share all increased year-over-year and outperforming our guidance. The recent quarter saw the continued growth of mobile business, supported by the impressive 19.2% year-over-year growth in mobile Internet subscribers to 5.54 million."

"As we move forward, we will continue expanding our 4G customer base, which has already accumulated more than 2.9 million subscribers in July. We expect to reach 3 million 4G subscribers in early August. This growth allows us to achieve favorable economies of scale and helps us generate strong EBITDA growth for our 4G business. We launched a 4G unlimited data promotional plan for NT$988 back on April 16^th, but we allowed the plan to expire at the end of June, demonstrating our intention to move towards a tiered pricing approach. We continue to target high-end customers for 4G migration, but have also began targeting mid-to-low end customers as well. Therefore, we launched a new promotional tiered data program launched on July 1^st for this target group. In addition, we further promoted our mobile value-added services along with the promotional plans, which bundle Hami services such as mobile TV, audio, and video streaming. We expect these initiatives to help support the 4G service growth momentum and allow us to reach our 4.2 million subscriber target by the end of this year. Ultimately, we are pleased with our performance thus far in 2015, and expect the ongoing strength of our mobile and 4G services to further fortify Chunghwa's position as the leading integrated telecommunications service provider in Taiwan."

• Ericsson supplies Chunghwa Telecom`s entire core network and RAN in Taiwan`s most populated areas, including Taipei city
• Ericsson will support Chunghwa Telecom to develop strategy for enterprise customers
• Small cells to provide high-performance connectivity and best experience

Ericsson (ERIC) today announced an LTE expansion contract with Chunghwa Telecom Co. Ltd. (CHT), the largest telecom operator in Taiwan. The agreement will further boost Chunghwa Telecom`s 4G LTE coverage and capacity with the latest Ericsson mobile broadband technology, and ensure customers will be able to enjoy an enhanced 4G experience.

In response to the rapid take-up of 4G subscriptions and data traffic, Chunghwa Telecom`s LTE expansion, including small cell build-out, will address the increasing capacity demand to deliver more music, video, and value-added business services to drive revenue growth. Ericsson will continue to serve as sole supplier for the entire core network, including a multi-access Evolved Packet Core, and as a major supplier for RAN in Taiwan`s most populated areas, including Taipei city.

Lin Kuo-Feng, President of Chunghwa Telecom Mobile Business Group, says: "The rapid growth of 4G subscriptions has exceeded our expectations. We see a huge data demand, and shifting consumer behavior to more data-centric services. We are pleased to keep leveraging Ericsson`s global practices to offer the best-of-breed mobile network, advance user experience and to develop applications for enterprise customers."

Jan Signell, Head of Region North East Asia at Ericsson, says: "This further demonstrates our commitment to our long term strategic business relationship with Chunghwa Telecom. As a major supplier to Taiwan`s largest operator, it is our mutual interests to not only deliver a superior network to optimize customer experience, but also create new revenue opportunities for Chunghwa Telecom in the enterprise business segment."

Ericsson is today present in all high traffic LTE markets including the US, Japan, and South Korea, and is ranked first for handling the most global LTE traffic - 40 percent of the world`s mobile traffic is carried over Ericsson networks.  Ericsson is number one in LTE market share within the world`s top 100 cities. More than 220 LTE RAN and Evolved Packet Core networks have been delivered worldwide, of which 170 are live commercially.

First Quarter 2015 Financial Results

• Total revenue increased by 2.6% to NT$56.47 billion 
• Basic earnings per share (EPS) was NT$1.35 vs. last years same quarter of NT$1.32.

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "We are pleased with our operational and financial results for the first quarter of 2015, which included exceeding our total revenues, operating income, and EPS expectations. This result was driven by our continued focus on key businesses, as evidenced by the further growth of mobile VAS and mobile service revenue, with growth rates of 19.0% and 4.6%, respectively. ICT business revenue was also growing. Furthermore, we continued to expand our market share in terms of mobile subscribers and revenues, reaching 37.5% and 37.1% by the end of February, respectively. Till now, according to our internal figures, we have already accumulated over 2.0 million 4G subscribers and continue to maintain our leadership position in this premium service offering."

"As we move forward, we will continue expanding our 4G customer base, allowing us to achieve favorable economies of scale and help us to generate strong EBITDA growth for our 4G business. As part of this market share expansion strategy, we announced a short-term promotional plan with favorable pricing incentives to attract new 4G subscribers. We will also continue to offer customized and comprehensive ICT solutions to enterprise customers, as well as develop in-house big data capabilities for future commercialization. Overall, we are pleased with our performance thus far in 2015, and expect our ongoing initiatives will help to further fortify Chunghwa's position as the leading integrated telecommunications service provider in Taiwan."

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2012, 2013 AND 2014

(In Millions of New Taiwan or U.S. Dollars, Except Earnings Per Share That Are in New Taiwan or U.S. Dollars)

(Continued)

F-4

Table of Contents

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2012, 2013 AND 2014

(In Millions of New Taiwan or U.S. Dollars, Except Earnings Per Share That Are in New Taiwan or U.S. Dollars)

Fourth Quarter 2014 Financial Results

• Total revenue increased by 1.4% to NT$59.63 billion 
• Basic earnings per share (EPS) was NT$1.04 vs. last years same quarter of NT$1.21.

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "We are pleased to report our operating results for 2014. During the fourth quarter, we witnessed a rapid uptake in 4G services throughout Taiwan. As of the end of 2014, we have already taken a market leading position in 4G services, accumulating over 1.33 million 4G subscribers and obtaining 38.6% market share. In December, we introduced LTE-Advanced carrier aggregation (CA) technology for the 900MHz and 1800MHz spectrum bands to provide users higher data rates. Furthermore, our 4G network now covers every township in Taiwan and we aim to continue our build-out of the network so that we can achieve 99% population coverage island-wide by the end of 2015. In addition, our broadband market share remained stable despite intensifying competition from cable operators."

"Going forward, we aim to continue expanding our 4G subscriber base to achieve our 40% market share target as well as focusing on the development of fixed and mobile value-added services. We will also promote our customized ICT solutions to enterprise customers across various industries. We remain confident that these initiatives will help solidify Chunghwa's position as the leading integrated telecommunications service provider in Taiwan."

2015 Guidance

For 2015, the Company expects total revenue to increase by NT$4.48 billion, or 2.0%, to NT$231.09 billion as compared to the prior year period. Operating costs and expenses are expected to increase by NT$3.48 billion, or 1.9%, to NT$185.92 billion as compared to the prior year period. Income from operations is expected to be NT$45.05 billion. Non-operating income is expected to be NT$0.87 billion. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$45.92 billion and NT$37.50 billion, respectively. Earnings per share are expected to be NT$4.83. CAPEX is expected to decrease by NY$1.86 billion, or 5.7%, to NT$30.7 billion as compared to the prior year period.

TAIPEI, Feb. 13, 2015 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its guidance for 2015 on a consolidated basis. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs").

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "We are pleased to report impressive operating results for 2014. We have taken a market leading position in 4G services, and our overall mobile market share continued to increase while broadband market share remained stable despite intensifying competition from cable operators. Looking ahead for this year, we will continue promoting 4G service offerings in order to achieve our 40% subscriber market share target. We will also remain aggressive in developing fixed-line and mobile value-added services, including fiber broadband convergence services for households, digital life applications for individuals and customized ICT solutions for enterprise customers across various industries. We are confident that these initiatives will help propel future growth for the company."

For 2015, the Company expects total revenue to increase by NT$4.48 billion, or 2.0%, to NT$231.09 billion as compared to the audited consolidated revenue for 2014. Expected increases in revenue are due to on-going promotions for mobile Internet services, expansion of fixed-line and mobile value-added services, continued migration of broadband customers to higher speed services including 300Mbps service and the promotion of ICT projects for enterprise customers. Increased revenue contribution from these growing businesses is expected to offset the projected decrease in voice service revenue attributed to VoIP substitution and market competition.

Operating costs and expenses for 2015 are expected to increase by NT$3.48 billion, or 1.9%, to NT$185.92 billion as compared to the prior year period. Expenses associated with expanding the mobile Internet, MOD and fixed-line and mobile value-added services are expected to increase. Amortization expenses primarily resulting from the 4G license acquisition are also expected to increase. In addition, personnel expenses are expected to grow due to salary increases.

Income from operations is expected to increase by NT$ 0.25 billion, or 0.5%, year-over-year. Non-operating income is expected to decrease by NT$0.89 billion year-over-year mainly due to declines in interest income, foreign currency exchange gains and other income. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$45.92 billion and NT$37.50 billion, respectively, representing decreases of NT$0.64 billion and NT$1.12 billion, respectively. Earnings per share is expected to decrease to NT$4.83.

CAPEX for 2015 is expected to decrease by NT$1.86 billion, or 5.7%, to NT$30.7 billion as compared to the prior year period. The decrease is primarily due to the continuous focus on precision construction and investment, especially in businesses with the growth potential as well as the enhancement of utilization efficiency of existing equipment.

AIRPORT CITY BUSINESS PARK, ISRAEL--(Marketwired - Feb 2, 2015) - RR Media (NASDAQ: RRST), a leading provider of global digital media services, announced today that Chunghwa Telecom (CHT), the largest integrated telecom service provider in Taiwan, has teamed up with RR Media's mobile satellite services (MSS) division, Station711, to offer a complete portfolio of mobile satellite services for maritime and land customers.

The combined solution provides a complementary management and built-in control toolset as well as a versatile value-added services (VAS) suite for operations, IT and crew welfare, together with a cost-efficient Inmarsat-based service. Post- or pre-paid communications services can be added, as needed, to serve the different functions on board ship or inside the organization. 

Ching-Tsung Chang, Managing Director of Satellite Business Department, International Business Group, Chunghwa Telecom Co Ltd, said, "It is important for us to work with a dynamic and flexible global provider, which can customize services based on customers' specific requirements. With RR Media, we're able to provide tailored Virtual Network Operators (VNO) -like services, enabling local and international shipping companies and others to monitor, manage and control their entire fleet as well as empower their own users in the service chain. Moreover, we can offer a range of powerful value added services, such as remote log-in and a smart control box, integrated into the core system. We're committed to offering a local and friendly satellite mobile service to any user who needs communication at sea or on land."

"We are proud to collaborate with CHT, a leading telecom company in the region, helping them to expand their market share and enhance their customers' communications capabilities," said Kobi Ohayon, Managing Director of RR Media's Station711 Mobile Satellite Services division. "Using our platform on their existing infrastructure, we're able to incorporate sophisticated technical and management tools with innovative value-added services, with significant savings on cost and resources."

Ohayon continued, "The Far East is a key market for us and we hope to expand our presence in the region, implementing more services going forward."

Third Quarter 2014 Financial Results

• Total revenue decreased by 1.0% to NT$56.14 billion
• Basic earnings per share (EPS) was NT$1.25

Second Quarter of 2014 Financial Results

• Total revenue decreased by 0.1% to NT$55.78 billion.
• Basic earnings per share (EPS) was NT$1.37 unchanged from last years quarter. 

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "Since joining Chunghwa six months ago, we have been working tirelessly, reviewing the company's operational strategies and promoting business development, with an emphasis on 4G, fiber broadband, MOD, and the enterprise business."

"Our second quarter was very exciting, being the first 4G operator in Taiwan with our launch at the end of May, we accelerated our 4G deployment and capital expenditure investment timeline so that we could offer our customers enhanced and faster user experience, and to gain an advantage over our competitors," Dr. Tsai continued. "We are still confident that by the end of this year, we will reach our target goal of acquiring at least 40% of the 4G market, and reach more than 90% population coverage by the end of 2015, further moving towards our goal of providing Taiwan's leading full-service, digital convergence services."

"Additionally, this quarter we carefully reviewed our capital expenditures and resource allocations. We believe that capital expenditures will be lower than what we previously budgeted due to greater operational efficiencies realized from reviewing capital utilization carefully as well as improved resource integration among business lines. By improving our efficiencies through strengthened resource allocation, we will continue to better position Chunghwa Telecom for strong long-term growth."

First Quarter 2014 Financial Results

• Chunghwa Telecom's total revenues for the first quarter of 2014 decreased by 2.8% to NT$55.06 billion 
• Diluted earnings per share (NTS) was 1.31 an 11% increase over last years 1.18.

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated, "The overall goal we are putting in place is to transform our company into a full-service, digital convergence service provider. We will continue to build out our high-speed infrastructure in order to provide seamless mobile and fixed broadband services. We also plan to offer 300Mbps to 1Gbps and LTE mobile high speed broadband access services, which will help facilitate our innovative digital convergence value-added service offerings that targets the individual customer, household, and enterprise markets. In this context, we will continue strengthening our MOD services to ensure a gateway into our customers' homes.

"Our key goal for this year is focused on business development, with an emphasis on the 4G, enterprise revenue, and fiber segments. First, as many of you know, we plan to roll out 4G services in July this year. Our aim is to acquire at least 40% of the 4G market share by the end of 2014. Second, we want to further increase our enterprise revenue share by offering a total solution package to SMEs which includes ICT and cloud services. And finally, we will be offering a fiber convergence plan that combines broadband and MOD packages so that we can stimulate both fiber migration and MOD subscriptions growth.

"Moving on, our next goal is to reallocate resources so that we can enhance our operating and financial efficiency. In order to achieve this goal, we plan on investing capitals more efficiently in our build outs and controlling operating expenses while allowing for a moderate expansion in the marketing budget.

"Our final strategic goal is to leverage our existing resources to grow our business. To this end, we will focus on further monetizing our fiber network by increasing its capacity usage, which in turn will help to control Capex. We will also leverage our R&D capability to develop new and innovative products and services so that we can continue to drive growth and deliver improved returns for our shareholders."

Fourth Quarter 2013 Financial Results

• Total revenue increased by 4.6% to NT$58.82 billion 
• Basic earnings per share (EPS) was NT$1.21

"2013 was an important year for Chunghwa Telecom. In the past twelve months, not only did we outperform our competitors in growing our mobile business and upgrade many customers to higher speed services, but we also secured licenses to operate the desirable 4G bands in the domestic market," stated Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom.

Dr. Tsai continued, "Heading into 2014, our key focus is on the seamless rollout of 4G services in the second half of the year, with the aim to be not only the first 4G operator in Taiwan, but also the best 4G operator in terms of service and network quality. Even in the increasingly competitive broadband market, we will continue to attract users and drive stickiness through offering attractive promotional plans, which allow customers free upload speed migration. Lastly, we plan to launch ground-breaking 300Mbps speed services helping us to solidify our technological superiority and maintain our market leading position."

2014 Guidance

Total revenue in 2014 is expected to slightly increase by NT$0.23 billion, or 0.1%, to NT$228.23 billion compared to the unaudited consolidated revenue for 2013. Expected increases in revenue due to on-going promotions for mobile internet and growth in handset sales as well as ICT projects will likely be offset by expected the voice revenue decline and tariff reductions. Broadband revenue is expected to be flat year-over-year due to market competition.

Operating costs and expenses for 2014 are expected to increase by NT$4.21 billion to NT$184.70 billion. Costs of handset sold are expected to increase along with the promotion of mobile internet packages and customers' migration to 3G. Increase in CAPEX for the Company's fixed and mobile broadband businesses is expected to result in higher depreciation and maintenance expenses. The 4G license acquisition will also increase amortization expenses.

Non-operating income is expected to decrease by NT$0.88 billion due to declines in both interest income and gains on disposal of financial assets. Income before income tax and comprehensive income attributable to stockholders of the parent are expected to be NT$44.20 billion and NT$35.84 billion, respectively, representing decreases of NT$4.94 billion and NT$2.86 billion, respectively. Earnings per share is expected to decrease to NT$4.62.

Not counting for the 4G license payment of NT$39.08 billion, CAPEX for 2014 is budgeted to increase by NT$3.72 billion year-over-year to NT$40.13 billion, primarily due to costs associated with the build-out of the 4G network, fiber broadband, mobile network, and cloud infrastructure.

AIPEI, January 28, 2014 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. ("CHT", "Chunghwa Telecom" or the "Company", TAIEX: 2412, NYSE: CHT) today announced that its Board of Directors has appointed Dr. Rick L. Tsai as Chairman and CEO of Chunghwa Telecom, effective immediately. Dr. Tsai replaces Dr. Yen-Sung Lee, who after serving the Company for 40 years, has chosen to retire. In addition, Dr. Shu Yeh will step down from his position as Chief Financial Officer (CFO) and Executive Vice President (EVP) upon completion of a four-year secondment from the National Taiwan University. President Mu-Piao Shih will serve as interim CFO.

Dr. Rick L. Tsai most recently served as the Chairman and Chief Executive Officer of TSMC Solar and TSMC Solid State Lighting since 2011. From 2001 to 2011, he held the following successive positions in TSMC: President and Chief Operation Officer, President and Chief Executive Officer and President of New Businesses. Before joining TSMC, Dr. Tsai was based in the United States and worked for Hewlett-Packard for several years. Dr. Tsai holds a Ph.D. in material science and engineering from Cornell University and a bachelor's degree in physics from National Taiwan University.

Under Dr. Tsai's co-leadership with President Shih, Chunghwa Telecom will aggressively promote LTE and fiber broadband services, lead the domestic telecom industry in developing digital convergence and become an international telecom leader.

In addition, as previously agreed upon, Dr. Shu Yeh will step down from his position as CFO and EVP on February 1^st, 2014. Dr. Yeh was sent to Chunghwa Telecom from the National Taiwan University on secondment in 2010.

TAIPEI, January 28, 2014 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its guidance for 2014 on a consolidated basis. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs") on a consolidated basis.

"We are glad to report to you that we ended 2013 with strong operational results in both growing our mobile business and upgrading customers to higher speed services," stated Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom. "Our chief focus for 2014 is on the seamless rollout of 4G services in the second half of the year, with the aim to be not only the first 4G operator in Taiwan, but also the best 4G operator in terms of service and network quality. Facing market saturation and competition on broadband business, we will continue to support growth through offering attractive convergence plans and facilitating higher-speed migration. Lastly, we plan to launch ground-breaking 300Mbps speed services, helping us to solidify our technological superiority and maintain our market leading position."

Total revenue in 2014 is expected to slightly increase by NT$0.23 billion, or 0.1%, to NT$228.23 billion compared to the unaudited consolidated revenue for 2013. Expected increases in revenue due to on-going promotions for mobile internet and growth in handset sales as well as ICT projects will likely be offset by the expected voice revenue decline and tariff reductions. Broadband revenue is expected to be flat year-over-year due to market competition.

Operating costs and expenses for 2014 are expected to increase by NT$4.21 billion to NT$184.70 billion. Costs of handset sold are expected to increase along with the promotion of mobile internet packages and customers' migration to 3G. Increase in CAPEX for the Company's fixed and mobile broadband businesses is expected to result in higher depreciation and maintenance expenses. The 4G license acquisition will also increase amortization expenses.

Non-operating income is expected to decrease by NT$0.88 billion due to declines in both interest income and gains on disposal of financial assets. Income before income tax and comprehensive income attributable to stockholders of the parent are expected to be NT$44.20 billion and NT$35.84 billion, respectively, representing decreases of NT$4.94 billion and NT$2.86 billion, respectively. Earnings per share is expected to decrease to NT$4.62.

Not counting for the 4G license payment of NT$39.08 billion, CAPEX for 2014 is budgeted to increase by NT$3.72 billion year-over-year to NT$40.13 billion, primarily due to costs associated with the build-out of the 4G network, fiber broadband, mobile network, and cloud infrastructure.

Third Quarter 2013 Financial Results

• Total revenue increased by 2.6% to NT$56.72 billion
• EPS was $0.04 vs. last year's $0.04

Dr. Yen-Sung Lee, Chairman and CEO of Chunghwa Telecom, commented, "We are proud of the success we were able to achieve in the third quarter and very excited with the results of the recent 4G auction. Having secured 35 MHz of spectrum, the largest amount in the auction, including the highly-sought-after deployment-ready 1800 MHz spectrum, we believe we have the potential to be the first-to-market in offering 4G services throughout Taiwan in the second half of 2014. Through attraction of new users and vertical migration of existing users to higher tier data plans, mobile Internet subscriber growth continued to exceed our guidance. We further extended our market leadership in mobile, growing our mobile internet subscriber market share to 34.1%. In the smart phone segment, through the successful implementation of our promotional initiatives, we grew our smartphone penetration to 50%, necessitating we revise our year-end guidance upward. For our broadband business, we continued our initiatives for retaining customers as well as facilitating customer upgrades. In the third quarter, we were able to double revenues for our cloud business year over year, and secure several high-profile ICT projects. Our success in this young business line is a testament to our ability to leverage our core telecom infrastructure and services to expand into new markets. Going forward, we aim to quickly build out our 4G offering, deploy data centers for our cloud business, and seek innovative ways to expand market share and increase monetization of our large subscriber base."

Second Quarter 2013 Financial Results

• Total revenue increased by 2.6% to NT$55.84 billion
• Net income totaled NT$10.64 billion, representing a 7.0% decrease
• Basic earnings per share (EPS) was NT$1.37 vs. last NT$1.46

Dr. Yen-Sung Lee, Chairman and CEO of Chunghwa Telecom, commented, "During the second quarter, Chunghwa Telecom continued to expand its market leadership in terms of both revenue and market share in our key growth segments. Through aggressive promotion of our data plans and strategic targeting of the fast-growing, low-to-mid tier smartphone market, we were not only able to rapidly attract new customers, but also effectively facilitate customers' adoption of data service. Benefiting from this concerted effort, our mobile internet subscriber market share expanded to 33.5%, helping us maintain our leading position with over 3.17 million subscribers as of the end of June. In addition, our mobile data revenue outperformed our peers during the quarter and increased by 35.1% year-over-year. We believe that this growth is a testament having the right strategy and strong execution capabilities, making it possible to capitalize on these growth opportunities. We recognize the growing demand in Taiwan for faster connections across all platforms and are uniquely positioned to take advantage of this as well as the upcoming mobile broadband spectrum auctions. We believe that with our current plans and the potential for mobile broadband expansion, we will be able to continue to capitalize on the markets demand for digital convergence services, further strengthening our overall business."

SAN JOSE, CA--(Marketwired - Jul 1, 2013) - CHT Global, the U.S. subsidiary of Taiwan's Chunghwa Telecom (CHT), announces that it has signed on as a mobile virtual network operator (MVNO) of wireless carrier Sprint to provide mobile data service to enterprises and traveling business professionals. The MVNO will use Sprint's nationwide 3G & high-speed 4G LTE data networks to provide enterprises with wireless connectivity by offering mobile data hotspots on a true postpaid service plan.

Launching as CHT Global Mobility, the contract free service consists of a per device monthly access fee of $5.99 that includes 100Mb of data. Once a device's data usage exceeds 100Mb, usage will be charged per Mb as part of the enterprise's account pool with discounts awarded based upon volume thresholds reached. Enterprises have the option to purchase devices upfront in full, or through a 1 to 2 year financing plan. 

"Many of our customers don't have a good workforce mobile data solution or are paying in excess for data bundles their employees don't fully use," said Joe Yang, President and CEO of CHT Global. "We're proposing a new kind of offering where companies can flexibly and affordably provide each employee the ability to connect anytime and anywhere, while only paying for what is actually needed and used. This will help our customers keep in step with the trend and movement towards an always connected and mobile workforce."

"The Sprint Emerging & Wholesale Solutions team can help international carriers extend their brand into the U.S. to reach English and non-English speaking customers who may be coming to the U.S. for an extended period of time," said Karen Freitag, vice president - Emerging & Wholesale Solutions at Sprint. "We are pleased to have been selected to enable this offering from CHT Global and look forward to helping them deliver a successful service."

First Quarter 2013 Financial Results

• Total net revenue increased by 2.1% to NT$56.63 billion
• Net income totaled NT$9.14 billion, representing a 4.7% decrease
• Basic earnings per share (EPS) was NT$1.18 vs. last years 1.23

Dr. Yen-Sung Lee , Chairman and CEO of Chunghwa Telecom, commented, "In the first quarter this year, we were able to deliver exceptional results.  Specifically, we increased our mobile market share by adding over 388,000 mobile internet subscribers quarter over quarter and increased our mobile data revenue by 42.2% year over year, which was the most among the major telecom operators. In terms of our broadband internet business, we experienced over 81.9% year-over-year growth in the number of subscribers opting for fiber offerings with speeds of 50Mbps and higher.  Given these results, we remain confident that our strategy continues to prove successful for Taiwan's evolving telecom market."

"Looking ahead, Chunghwa Telecom will be focusing its growth effort in three major areas.  Firstly, we are focused on expanding our core CT telecom services, including fixed broadband, mobile internet and voice services.  Secondly, we aim to broaden our ICT and value-added services which are developed on top of our backbone and include corporate ICT solutions, cloud computing services, MOD as well as various mobile value-added services. Lastly, we will continue assessing future overseas business and investment opportunities that can leverage our core strengths.  We firmly believe that this strategy will enable us to expand upon our solid foundation for continuous and sustainable growth going forward."

Fourth Quarter 2012 Results

• Total net revenue increased by 2.5% to NT$56.27 billion 
• Net income totaled NT$9.11 billion, representing a 8.9% decrease
• Basic earnings per share (EPS) was NT$1.17

Third Quarter 2012 Financial Highlights

• Total net revenue decreased by 2.3% to NT$54.40 billion
• Net income totaled NT$10.2 billion, representing a 14.6% decrease
• Basic earnings per share (EPS) was NT$1.31

"We are pleased with our third quarter financial results and we remain on track to meet our full year financial guidance," commented Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer of Chunghwa Telecom. "In order to meet customer demands in today's quickly evolving digital and mobile world, we continued to leverage our full suite of telecom services to further attract subscribers and steadily increase average revenue per user ("ARPU"). In fact, recent surveys indicated that our MOD offers the highest quality TV services in Taiwan, which is reflected in our revenue growth and increasing demand from advertisers. On the mobile front, we continued to maintain our leadership with the largest customer base and highest customer loyalty in Taiwan, delivering over 51.5% year-over-year growth in mobile internet services revenue."

Second Quarter 2012 Financial Highlights

• Total net revenue was flat at NT$54.19 billion
• Mobile communications revenue increased by 10.7% to NT$24.74 billion; mobile value-added services (VAS) revenue increased by 33.6% to NT$5.04 billion; handset sales revenue increased by 34.9% to NT$6.65 billion
• Internet revenue decreased by 4.0% to NT$6.0 billion; internet VAS revenue increased by 7.5% to NT$0.72 billion
• Domestic fixed communications revenue decreased by 6.8% to NT$18.44 billion
• International fixed communications revenue increased by 0.2% to NT$3.87 billion
• Total operating costs and expenses increased by 1.9% to NT$39.75 billion
• Net income totaled NT$11.27 billion, representing a 15.2% decrease
• Basic earnings per share (EPS) was NT$1.46

Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer of Chunghwa Telecom, commented, "In spite of continued regulatory pressure and intense market competition, we were very pleased that we were able to meet our earlier guidance for the first half of 2012. In an effort to stay ahead in this evolving telecom landscape, we continue to take proactive steps in key growth areas necessary to stabilize our core business, while making notable progress in capturing new business opportunities. As an example, our mobile VAS business continued its strong growth momentum this quarter with revenue growing 33.6% year-over-year. New efforts to offer customized promotional packages catering to the varied needs of new customers as well as upgrade promotions targeting our 10 million subscribers is proving successful. Building upon our leadership as the largest integrated telecommunications company in Taiwan, we believe our comprehensive services offering and new initiatives will further extend our customer reach and strengthen our foundation in Taiwan's dynamic telecom industry."

Second Quarter 2011 Financial Highlights

• Total consolidated revenue increased by 9.6% to NT$54.42 billion
• Mobile communications revenue increased by 1.1% to NT$22.35 billion; mobile value-added services (VAS) revenue increased by 42% to NT$3.77 billion
• Internet revenue increased by 3.4% to NT$6.25 billion; internet VAS revenue increased by 13.9% to NT$0.67 billion
• Domestic fixed communications revenue increased by 14.1% to NT$19.78 billion 
• International fixed communications revenue increased by 3.9% to NT$3.86 billion
• Total operating costs and expenses increased by 12.3% to NT$39.01 billion
• Net income totaled NT$13.30 billion, representing a 2.8% increase
• Basic earnings per share (EPS) increased by 27.6% to NT$1.71