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Chunghwa Telecom Earlier Issued 2020 Guidance, Co. Sees Sales NT$214.10B-NT$215.29B; Says 'The increase in revenue is expected to be driven by increases in ICT project revenues, Application VAS revenues, handset sales revenue and MOD revenue'

For 2020, the Company expects total revenue to increase by NT$ 6.58~NT$7.77 billion, or 3.2%~3.7%, to NT$214.10~NT$215.29 billion as compared to the un-audited consolidated total revenue of 2019. The increase in

Benzinga · 01/21/2020 14:52

For 2020, the Company expects total revenue to increase by NT$ 6.58~NT$7.77 billion, or 3.2%~3.7%, to NT$214.10~NT$215.29 billion as compared to the un-audited consolidated total revenue of 2019. The increase in revenue is expected to be driven by increases in ICT project revenues, Application VAS revenues, handset sales revenue and MOD revenues, which are expected to offset the decrease in voice revenue resulted from continuing VoIP substitution and the decline of mobile service revenue owing to market competition.

Operating costs and expenses for 2020 are expected to increase by NT$ 8.77~NT$9.09 billion, or 5.3%~5.5%, to NT$175.51~NT$175.83 billion as compared to the prior year. The increase is expected to be attributable to the increase of ICT project costs, cost of goods sold and amortization expense of 5G concession and related costs following the launch of 5G services.

Income from operations is expected to decrease by NT$ 2.16~NT$0.45 billion, or 5.3%~1.1%, year over year. Income before income tax and net income attributable to stockholders of the parent are expected to be NT$39.38~NT$41.28 billion and NT$30.91~NT$32.47 billion, respectively, representing year-over-year decreases of NT$2.40~ NT$0.50 billion and NT$1.90~ NT$0.34 billion, respectively. Net earnings per share for 2020 is expected to decrease by NT$0.24~NT$0.04 to NT$3.99~NT$4.19, as compared to the prior year.

Acquisition of Material Assets in 2020 is expected to increase by NT$52.54 billion as compared to the prior year, which is expected to be attributable to the acquisition of 5G licenses, the expansion of 5G network, strategic investments in IP-based Public Switched Telephone Network and the upgrade of MOD platform and the increase of related equity investments led by the expansion of our business deployment.