Chunghwa Telecom Anticipates Robust Growth in 2024 with Increased Revenue and Strategic Investments

Chunghwa Telecom, a leading telecommunications company in Taiwan, has revealed its optimistic outlook for the fiscal year 2024.
Chunghwa Telecom 5G businessTaipei, Taiwan-based Chunghwa Telecom expects a notable surge in revenue in 2024, projecting an increase ranging from NT$5.34 billion to NT$6.99 billion, equivalent to a percentage growth of 2.4 percent to 3.1 percent as compared with 2023. This would bring the anticipated total revenue for 2024 to a range of NT$228.54 billion to NT$230.19 billion, compared to the consolidated total revenue of 2023.

One of the key drivers for this projected growth is an anticipated uptick in capital expenditure (Capex) for the year 2024. The company foresees a substantial increase of NT$3.04 billion, reaching a total Capex of NT$34.02 billion.

Chunghwa Telecom has attributed the upswing to investments, including substantial contributions to 5G deployment to maintain a competitive edge, expansion of internet data centers, new submarine cable construction, and the elimination of energy-intensive equipment to align with environmental, social, and governance (ESG) practices.

The financial performance for the fourth quarter of 2024 has already demonstrated positive results, with total revenues increasing by 4.0 percent to NT$61.86 billion. Notably, the Consumer Business Group experienced a 4.4 percent increase in total revenue, reaching NT$36.54 billion.

The growth in mobile service revenue was particularly impressive, registering a 5.3 percent year-on-year increase. This boost is attributed to a stable transition to 5G technology and an uptick in postpaid subscriber growth.

The Enterprise Business Group also contributed to the overall positive performance, with a 2.5 percent increase in revenue, totaling NT$21.74 billion. This growth is mainly attributed to increased revenue from mobile services, information and communication technology (ICT) business, and sales revenue, Chunghwa Telecom said.

Looking back at the full year of 2023, Chunghwa Telecom experienced a 3.0 percent increase in total revenue, reaching NT$223.20 billion. This growth is attributed to the expanding core business segments, including mobile, ICT, and broadband services.

However, despite the overall positive trajectory, the company reported a 4.6 percent decrease in income from operations for the fourth quarter of 2023, amounting to NT$10.45 billion. The operating margin also saw a decline from 18.4 percent in the same period of 2022 to 16.9 percent.

Net income dipped by 1.7 percent to NT$8.26 billion, with basic earnings per share reported at NT$1.06. Excluding one-time impairments related to the phase-out of the 3G network, the financial performance may vary.

Chunghwa Telecom has over 3 million 5G subscribers.

Shui-Yi Kuo, Chairman and Chief Executive Officer of Chunghwa Telecom, has emphasized the company’s commitment to maintaining an industry lead, backed by the most extensive infrastructure, largest network capacity, highest speed, and best-quality 5G network.