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Taiwan Mobile Co., Ltd. — Earnings Release 2014
Mar 16, 2015
52277_rns_2015-03-16_d1783c21-2f0e-466e-9953-7c164365c956.pdf
Earnings Release
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Press Release
March 10, 2015
TWM announced February consolidated revenue of NT$9.47bn. EBITDA was NT$2.33bn with an operating income of NT$1.25bn and net income of NT$1.15bn. EPS was NT$0.42. For the first two months of 2015, TWM reported a consolidated revenue of NT$20.05bn, an EBITDA of NT$4.97bn, an operating income of NT$2.83bn and a net income of NT$2.37bn. EPS for the first two months was NT$0.87.
Rosie Yu, Chief Financial Officer and Spokesperson of TWM, stated that, in February, consolidated revenue to increase 7% compared to the same period last year driven by increases in the 4G and momo businesses. However, 4G-related costs and expenses also increased. Overall, cumulative net income for January and February reached 70% of the first quarter earnings forecast.
Taiwan Mobile Consolidated Results (Unaudited)
| NT$mn | Feb. 2015 | Feb. 2014 | Jan.-Feb. 2015 | Jan.-Feb. 2014 |
|---|---|---|---|---|
| Revenue | 9,466 | 8,864 | 20,046 | 18,808 |
| Operating Revenue1 | 7,477 | 7,164 | 15,394 | 15,045 |
| Handset Sales Revenue | 1,989 | 1,700 | 4,652 | 3,763 |
| EBITDA | 2,332 | 2,399 | 4,974 | 5,085 |
| Operating income | 1,247 | 1,516 | 2,826 | 3,324 |
| Pre-tax income | 1,196 | 1,472 | 2,699 | 3,390 |
| Net income | 1,155 | 1,196 | 2,369 | 2,737 |
| EPS (NT$) | 0.42 | 0.45 | 0.87 | 1.02 |
Note 1: Derived from deducting handset sales revenue from the total revenue
IR contact:
Shirley Chu Rosie Yu Senior Director of Investor Relations Chief Financial Officer and Spokesperson Tel: 8862-6636-3159 Tel: 8862-6638-3909 Email: [email protected] Email: [email protected] 13F, No.88, Yan Chang Rd., Xinyi Dist. Taipei City 110, Taiwan
Taiwan Mobile Co., Ltd.
4Q14 Results Summary January 29, 2015
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The information contained in this presentation, including all forwardlooking information, is subject to change without notice, whether as a result of new information, future events or otherwise, and Taiwan Mobile Co., Ltd. (the “Company”) undertakes no obligation to update or revise the information contained in this presentation. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is the information intended to be a complete statement of the Company, markets or developments referred to in this presentation.
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Business Overview
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4G User Penetration Rate[1 ]
Mobile Service Revenue[2 ]
Unit: NT$mn
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+0.5% YoY
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Non-voice Revenue[2 ]
25% YoY
Unit: NT$mn
Note 1: 4G postpaid user number as % of postpaid installed base 2: Based on IFRS – Residual Value Method, i.e. excluding revenue adjustments under the current bundle sales accounting policy
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Sub base
4Q14 ARPU
YoY growth
Analogue TV 1% $493
Cable Internet 5% $545
DTV 35% $133
Blended ARPU * $806 +2% YoY
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- Calculation based on total cable TV revenue excluding content agency revenue
| momo (Unit: NT$bn) |
4Q14 | YoY | 2014 | YoY |
|---|---|---|---|---|
| Total Revenue | 6.33 | 13% | 23.90 | 16% |
| - Online Shopping | 4.11 | 24% | 14.98 | 30% |
| - TV Home Shopping & Others | 2.22 | -2% | 8.92 | -1% |
| EBITDA 0.39 29% 1.56 50% |
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| EBITDA margin 6.1% +0.8ppts 6.5% +1.5ppts |
Note: momo announced the sale of its cosmetics stores and department store operations on March 28, 2014 and August 30, 2013, respectively. The related operating results of the aforementioned business lines were reclassified retroactively as discontinued operations and thus were not included in the table above.
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Financial Overview
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| NT$bn | Revenue | Revenue | Revenue | Revenue | EBITDA | EBITDA | EBITDA | EBITDA |
|---|---|---|---|---|---|---|---|---|
| Telecom | CATV | momo | Total | Telecom | CATV | momo | Total | |
| 4Q14 | 22.22 | 1.61 | 6.33 | 30.19 | 5.96 | 0.86 | 0.39 | 7.26 |
| % of total |
74% | 5% | 21% | 100% | 83% | 12% | 5% | 100% |
| 4Q14 YoY |
4% | 2% | 13% | 6% | -8% | 6% | 29% | -5% |
| 3Q14 YoY |
-3% | 2% | 23% | 3% | -4% | 5% | 113% | 1% |
Note: The combined total of telecom, CATV and momo does not equal the consolidated total of each account due to other revenue and minor adjustments / eliminations.
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| NT$mn | 4Q14 | YoY |
as % of 4Q14 Guidance |
2014 Full-year |
YoY |
|---|---|---|---|---|---|
| Revenue | 30,194 | 6% | 100% | 112,624 | 4% |
| Cost | (21,456) | 14% | 98% | (75,098) | 8% |
| Operating expenses | (4,618) | 1% | 101% | (17,815) | 0% |
| Operating income | 4,120 | -18% | 106% | 19,711 | -6% |
| Net non-operating items | (68) | -89% | 12% | (846) | -49% |
| Income before tax | 4,052 | -9% | 121% | 18,865 | -3% |
| Net income | 3,047 | -14% | 105% | 15,005 | -4% |
| EPS (NT$) | 1.11 | -16% | 105% | 5.56 | -4% |
| EBITDA | 7,256 | -5% | 102% | 31,295 | 1% |
| EBITDA margin | 24.03% | 27.79% |
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| NT$bn | 4Q14 | 3Q14 | 4Q13 | 4Q14 | 3Q14 | 4Q13 |
|---|---|---|---|---|---|---|
| Total Assets | 153.54 | 146.66 | 138.35 Liabilities |
87.03 | 89.39 | 79.83 |
| Current Assets | 32.83 | 28.71 | 29.49 Current Liabilities |
53.47 | 55.14 | 58.61 |
| - Cash & Cash Equivalents | 7.90 | 6.99 | 7.95 - ST Debts |
26.70 | 28.17 | 34.00 |
| - Accounts Receivable | 15.02 | 14.77 | 14.63 - Other Current Liabilities |
26.77 | 26.97 | 24.60 |
| - Inventories | 3.21 | 3.31 | 3.78 Non-Current Liabilities |
33.56 | 34.25 | 21.23 |
| - Other Current Assets | 6.69 | 3.64 | 3.12 - Long-Term Borrowings |
27.98 | 28.98 | 16.79 |
| Non-current Assets | 120.70 | 117.95 | 108.86 - Other Non-current Liabilities |
5.58 | 5.28 | 4.43 |
| - Long-term Investment | 5.07 | 2.51 | 4.19 | |||
| - Property and Equipment | 47.07 | 47.24 | 42.99 | |||
| - Concession | 39.10 | 39.37 | 32.75 Shareholders' Equity |
66.51 | 57.27 | 58.52 |
| - Other Non-current Assets | 29.46 | 28.83 | 28.93 - Paid-in Capital |
34.21 | 34.21 | 34.21 |
| 4Q13 - Capital Surplus - Legal Reserve |
14.72 | 12.49 | 12.46 | |||
| 4Q14 | 3Q14 | |||||
| 21.54 | 21.54 | 19.26 | ||||
| Current Ratio | 61% | 52% | 50% - Un-appropriated Earnings |
4.83 | 4.83 | 6.61 |
| Net Debt to Equity | 70% | 88% | 73% - Treasury Shares |
(29.72) | (31.08) | (31.08) |
| Net Debt to EBITDA (x) | 1.49 | 1.61 | 1.38 - Non-controlling Interest |
6.25 | 3.16 | 1.09 |
| ROE (annualized) | 20% | 28% | 25% - Retained Earnings & Others* |
14.68 | 12.11 | 15.97 |
- Including accumulated profits and other equity items
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| NT$bn | 4Q14 | 3Q14 | 2014 | 2013 |
|---|---|---|---|---|
| Operating Cash Flow | 7.23 | 7.59 | 28.34 | 24.83 |
| Investing Cash Flow | (10.23) | (3.66) | (19.66) | (42.37) |
| Financing Cash Flow | 3.90 | (2.94) | (8.74) | 19.29 |
| NT$bn | 4Q14 | 3Q14 | 2014 | 2013 |
| Cash CAPEX | (4.07) | (3.59) | 14.70 | 12.01 |
| Free Cash Flow | 3.16 | 4.00 | 13.63 | 12.82 |
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2015 Guidance & Event Updates
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| NT$bn | 2015F | 2014A | YoY |
|---|---|---|---|
| Revenue | 125.23 | 112.62 | 11% |
| EBITDA | 32.94 | 31.29 | 5% |
| D&A Expense | (13.99) | (11.58) | 21% |
| Operating Income | 18.95 | 19.71 | -4% |
| Non-operating Expense | (1.48) | (0.85) | 75% |
| Net Income | 13.91 | 15.01 | -7% |
| EPS* (NT$) | 5.05 | 5.56 | -9% |
- EPS is based on total share counts of 2.756bn for 2015 and 2.698bn for 2014.
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Capex Guidance
The board today (January 29, 2015) approved a NT$13.9bn capex for 2015, including NT$9.8bn for mobile, NT$1.7bn for fixed-line, NT$0.9bn for CATV and NT$1.5bn for momo and other subsidiaries.
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Regulatory Update NCC has approved TWM’s 5MHz spectrum purchase from Ambit on January 7, 2015, making TWM the owner of the largest contiguous 20MHz on the 700 frequency band. With the same total 4G spectrum holding of 35MHz, TWM’s license cost is NT$6.6bn lower than that of the other competitor.
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Awards and Recognition
− Named a recipient of “The Best of Asia: Icon on Corporate Governance” award for the second year in a row (2013~2014)
− Received the international renowned Swiss SGS Qualicert certification for its quality direct stores channel and customer service system for the second year in a row (2013~2014)
− Received the following four awards from the Taiwan Institute for Sustainable Energy Research: “Taiwan’s Top 10 Role Model Company of Sustainability”, the “Integrity and Transparency Award”, the “Role Model Award for Community Service and Outreach” and the “2014 Taiwan’s Top 50 Corporate Sustainability Report Award – Gold Award in Telecom Sector”
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Taiwan Mobile will be reaping the benefits of the 4G LTE service in 2015 from the extra spectrum acquired on the 700 frequency band and more spectrum to be freed up on the 1800 frequency band.
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Q & A
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