#Taiwan #Taipei #financial results #2024 #Chunghwa Telecom

Chunghwa Telecom's Stunning Financial Performance for 2024

On January 23, 2025, Chunghwa Telecom Co., Ltd. (listed on TAIEX as 2412 and NYSE as CHT) announced its un-audited financial results for both the fourth quarter and the entire year of 2024. The report reveals a remarkable growth trajectory for the company, as it navigates through the ever-evolving telecommunications landscape.

Fourth Quarter Highlights

Chunghwa’s financial data indicates a robust total revenue of NT$ 65.35 billion for the fourth quarter, marking an increase of 5.6% compared to the same quarter the previous year. Particularly noteworthy was the performance of the Enterprise Business Group, which saw revenue climb by a stellar 10.2% to NT$ 23.96 billion, largely driven by a substantial 24.1% growth in ICT business revenues. This sector has increasingly benefitted from the integration of cutting-edge technologies like cloud services and cybersecurity.

In contrast, the International Business Group faced challenges, with revenues declining by 2.3% to NT$ 2.50 billion, primarily due to decreasing international voice revenues. However, this was offset by the overall positive trend in the other divisions, allowing for a net income attributable to parent shareholders of NT$ 9.00 billion, which represents an increase of 9.0% year-over-year.

Full Year Performance

For the entire year of 2024, Chunghwa recorded a total revenue of NT$ 230.03 billion, reflecting a 3.1% growth. Revenue from its Consumer Business Group increased by 2.1%, driven by its successful mobile subscription growth and the rising popularity of bundle packages. The company also capitalized on the demands of the growing ICT market, with notable increases in cloud, IDC, and cybersecurity services.

Moreover, Chunghwa Telecom also reported an EBITDA of NT$ 86.50 billion for 2024, just slightly up by 0.6% from 2023. The incremental rise came despite mounting operational expenses that grew by 4% to NT$ 183.27 billion for the year, driven by an increase in manpower costs and higher expenses associated with ICT projects.

Strategic Initiatives and Innovations

Chunghwa’s leadership attributes their success to a focused strategic vision, with Chairman and CEO Mr. Chih-Cheng Chien emphasizing their commitment to delivering comprehensive services across all segments. The company’s mobile sector maintains its dominance in the Taiwanese market, with a substantial 40.3% revenue share, as they continue to strengthen their 5G offerings.

Notably, the company has developed Taiwan’s first 5G unmanned vehicle solution aimed at smart harbor inspections, showing prospects for expansion into additional areas such as firefighting and coast patrol projects. In a strategic partnership with NTT Corporation, Chunghwa showcased an ultra-low-latency immersive video service, marking a promise for innovative viewing solutions in the telecommunications arena.

Looking Ahead

As Chunghwa Telecom gears up for 2025, they anticipate a further increment in total revenue ranging from NT$ 232.74 to NT$ 233.74 billion. There’s also cautious optimism, as operating costs are projected to surge due to ongoing investments in their infrastructure and technology improvements. The focus remains on bolstering their competitive edge, particularly in the evolving realms of AI, 5G, and sustainable practices.

Furthermore, Chunghwa Telecom has also garnered recognition for their ESG efforts, securing a place in the 2024 Dow Jones Sustainability World Index and receiving multiple awards for their commitment to responsible corporate governance and sustainability practices.

Conclusion

With a proven track record for performance and innovation, Chunghwa Telecom is well-positioned to maintain its leadership in Taiwan’s telecommunications sector. The company is not only focused on delivering value to its shareholders but also committed to enhancing sustainable practices and innovative technological solutions, ensuring long-term growth and stability in a competitive market.