CHT(US:CHT)2022-05-03 19:31Financial Data and Key Metrics Changes - Total revenues increased by 2.4% year-over-year in Q1 2022, while operating costs and expenses rose by 1.7% mainly due to increased personnel expenses and depreciation from 5G network deployment [14] - Income from operations increased by 4.6%, and net income rose by 2.5%, with EPS increasing by TWD0.02 to TWD1.16 compared to the same quarter last year [14] - EBITDA margin improved to 41.51% from 41.08% in the prior year period [14] Business Line Data and Key Metrics Changes - Mobile subscriber numbers, excluding IoT SIMs, increased by 0.7% year-over-year, with mobile service revenue up by 4.9% year-over-year [5][4] - Fixed broadband revenue grew by 4.4% year-over-year, driven by higher speed service adoption, with ARPU increasing by 3.5% year-over-year [7] - Enterprise Business Group revenue increased by 2.1% due to growth in mobile and fixed broadband revenues [10] Market Data and Key Metrics Changes - The mobile market in Taiwan remained steady, with Chunghwa Telecom maintaining a 39.1% revenue market share and a 36% subscriber market share [4] - The number of fixed broadband subscribers and high LAN subscribers continued to grow year-over-year, reflecting Chunghwa's leading market share [6] Company Strategy and Development Direction - The company aims to package and deliver more customer-centric services focusing on media, sports, gaming, and virtual reality applications to expand opportunities in the consumer market [8] - The International Business Group is focusing on growing demand for IDC, cloud, and ICT services, with a strategy to cater to global clients [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a leading market position despite potential changes in the competitive landscape [4] - The company remains positive about the full-year performance of its Enterprise ICT business, despite a decrease in project revenue recognition [11] Other Important Information - Chunghwa Telecom received several awards for its ESG practices and innovative digital applications, affirming its leading status in the telecom sector [17] Q&A Session Summary Question: Growth in International Business - The International Business Group has reorganized its revenue structure, and the company expects continued growth from global accounts, with a positive outlook on revenue growth [19][22] Question: Enterprise Business Growth - The Enterprise Business Group includes various revenue streams such as satellite communication and undersea cable sales, with expectations for growth [23][24] Question: 5G ARPU Increase - The company does not disclose specific numbers regarding the net increase in ARPU after accounting for handset subsidies, but acknowledges a significant increase [26][29] Question: 5G Penetration Target - The target for 5G penetration by the end of the year is set at 30%, with innovative applications expected to drive this growth [30][32] Question: Impact of Promotions and COVID-19 - Promotions are not expected to affect ARPU significantly, and the company believes that COVID-19 will not severely impact business performance due to the steady nature of the telecom industry [33][34]