CHT(US:CHT)2021-05-06 15:20Financial Data and Key Metrics Changes - Total revenues increased by 4.1% year-over-year in Q1 2021, driven by ICT project revenue and handset sales [12] - Operating costs and expenses rose by 3.7% year-over-year, primarily due to higher ICT project costs [13] - Net income increased by 6.4%, and EBITDA margin improved to 41.09% from 40.18% in the same period of 2020 [12][14] Business Line Data and Key Metrics Changes - Mobile business maintained a revenue market share of 39% and subscriber share of approximately 60% [7] - Broadband ARPU increased by 3% year-over-year, with a 58% year-over-year increase in subscribers adopting speeds of 300 Mbps or higher [8][9] - ICT project revenue grew by 20% year-over-year, with IDC revenue increasing by 40% and cybersecurity revenue up by 31% [11] Market Data and Key Metrics Changes - 5G subscriber growth exceeded internal targets, with a goal of 2 million subscribers by year-end [5] - Taiwan ranked first in 5G upload speeds and second in download speeds globally according to Opensignal [6] Company Strategy and Development Direction - The company aims to enhance 5G deployment and user experience, with a focus on expanding its ICT capabilities [6][11] - Plans to roll out higher-speed broadband services to further increase ARPU and solidify market leadership [9] Management Comments on Operating Environment and Future Outlook - Management remains optimistic about year-over-year growth in mobile service revenue despite challenges from COVID-19 [8] - The company expects to maintain an upward trend in broadband business and is focused on enhancing ICT project profit margins [11][18] Other Important Information - The company budgeted $43.1 billion in CapEx for 2021, focusing on 5G network construction, IDC, and submarine cables [14] - Cash and cash equivalents increased by 81.4% year-over-year to $30.06 billion, primarily due to corporate bond issuance [13][14] Q&A Session Summary Question: What is the ARPU lift for 5G adopters compared to 4G? - Management noted that postpaid mobile subscribers are seeing an upsell, with 5G users adopting higher price plans [17] Question: What is the fiber-to-the-home penetration rate? - The fiber-to-the-home penetration rate is approximately 85% [17] Question: What industries are the major customers for ICT projects? - Major customers include government agencies and research institutions, with a focus on increasing project profit margins [18] Question: What is the average data usage for 5G subscribers compared to 4G? - Average 5G users consume about 33 GB, compared to 24 GB for average mobile data users [23] Question: What is the expected return on investment for the ICT business? - Management aims to increase profit margins and has been selective in choosing ICT projects [26] Question: What is the reason for the increase in CapEx for 2021? - The increase is primarily due to the acceleration of 5G network deployment and demand for IDC and cloud services [36] Question: How many 5G base stations have been deployed so far? - Over 6,300 5G base stations have been completed, with a target of more than 10,000 by year-end [42] Question: How will government subsidies affect the income statement? - Government subsidies will be recorded as deferred revenue and amortized over the useful life of the 5G base stations [44]