Technology
AudioCodes Reports Third Quarter 2024 Results
Published
2 hours agoon
By
OR YEHUDA, Israel, Nov. 6, 2024 /PRNewswire/ —
Third Quarter Highlights
Quarterly revenues decreased by 2.2% year-over-year to $60.2 million;Quarterly service revenues increased by 6.4% year-over-year to $32.5 million;GAAP results:
– Quarterly GAAP gross margin was 65.2%;
– Quarterly GAAP operating margin was 8.1%;
– Quarterly GAAP EBITDA was $5.9 million;
– Quarterly GAAP net income was $2.7 million, or $0.09 per diluted share. Non-GAAP results:
– Quarterly Non-GAAP gross margin was 65.6%;
– Quarterly Non-GAAP operating margin was 11.7%;
– Quarterly Non-GAAP EBITDA was $7.9 million;
– Quarterly Non-GAAP net income was $4.9 million, or $0.16 per diluted share.Net cash provided by operating activities was $7.9 million for the quarter.AudioCodes repurchased 332,709 of its ordinary shares during the quarter at an aggregate cost of $3.6 million.
Details
AudioCodes (NASDAQ: AUDC), a leading provider of unified communications voice, contact center and conversational AI applications and services for enterprises, today announced its financial results for the third quarter ended September 30, 2024.
Revenues for the third quarter of 2024 were $60.2 million compared to $61.6 million for the third quarter of 2023.
EBITDA for the third quarter of 2024 was $5.9 million compared to $6.4 million for the third quarter of 2023.
On a Non-GAAP basis, EBITDA for the third quarter of 2024 was $7.9 million compared to $10.1 million for the third quarter of 2023.
Net income was $2.7 million, or $0.09 per diluted share, for the third quarter of 2024 compared to net income of $4.3 million, or $0.14 per diluted share, for the third quarter of 2023.
On a Non-GAAP basis, net income was $4.9 million, or $0.16 per diluted share, for the third quarter of 2024 compared to $8.3 million, or $0.25 per diluted share, for the third quarter of 2023.
Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) expenses related to deferred payments in connection with the acquisition of Callverso Ltd; (iv) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies; (v) tax impact which relates to our Non-GAAP adjustments; and (vi) in Q1 2024 non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company’s new headquarters. A reconciliation of net income on a GAAP basis to a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
Net cash provided by operating activities was $7.9 million for the third quarter of 2024. Cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments were $88.4 million as of September 30, 2024 compared to $106.7 million as of December 31, 2023. The decrease in cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments was the result of the use of cash for the continued repurchasing of the Company’s ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during each of the first and third quarters of 2024 and purchase of property and equipment related to leasehold improvements of our new corporate headquarter in Israel, offset, in part, by cash from operating activities.
“I am pleased to report we have successfully executed against our strategic priorities this quarter, as we continue to make progress in our long-term goal of leading the voice services market for the UCaaS and CX markets. We continued our transformation to become a cloud software and services company with a higher proportion of recurring revenue vs. legacy perpetual revenues,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.
Third quarter services revenues grew 6.4% year-over-year and accounted for 53.9% of revenues, the highest on record for us. Fueling the strength of our services revenue stream as our primary growth engines were Live managed services (consisting of Live Teams and Live CX) and conversational AI. Specifically, Live Teams business grew 21% year over year and accounted for 44% of total Microsoft business compared to 37% a year ago. On conversational AI, third quarter dollar value of contracts signed increased roughly 50% vs the year ago period.
Our success in building Live managed services and recurring revenue stream has translated to strong year-over-year ARR growth of 40%, ending 3Q at $60 million ARR, up from $48 million exiting 2023. This success is owed to the trust we have built throughout the years with partners and enterprise customers in the voice services space. There is no better proof than our long-standing multi-year partnership with AT&T in North America, leveraging our expertise in providing secure voice connectivity to help their business customers onboard to Microsoft Teams. This fruitful partnership has contributed multi-millions of annual recurring revenues over the last several years.
Speaking of conversational AI, strong operational momentum continues, driven by long-term tailwind of infusing AI into UC and CX workflows in customers’ inexorable demand to drive ongoing productivity gains. Accordingly, we have seen significant pick-up in pipeline activities across our entire conversational AI suite, including Voca CIC, our AI first CX solution for Microsoft Teams, SaaS Recording solutions such as Meeting Insights and interaction recording, and Voice AI Connect.
Overall, we delivered on our business priorities in the quarter, with the strength in our Live recurring businesses buttressing the healthy overall pipeline for our major practices such as Microsoft business, CX and Conversational AI. We believe this bodes well for seeing improved top-line growth performance as we head into 2025 and beyond,” concluded Mr. Adlersberg.
Share Buy Back Program and Cash Dividend
In July 2024, the Company received court approval in Israel to purchase up to an aggregate amount of $20 million of additional ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through January 1, 2025.
On July 30, 2024, the Company declared a cash dividend of 18 cents per share. The dividend, in the aggregate amount of approximately $5.4 million, was paid on August 29, 2024, to all of the Company’s shareholders of record on August 15, 2024.
During the quarter ended September 30, 2024, the Company acquired 332,709 of its ordinary shares under its share repurchase program for a total consideration of $3.6 million.
As of September 30, 2024, the Company had $11 million available under this approval for the repurchase of shares and/or declaration of cash dividends.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company’s third quarter of 2024 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one the following numbers:
United States Participants: 888-506-0062
International Participants: +1 (973) 528-0011
The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby.
About AudioCodes
AudioCodes (NASDAQ, TASE: AUDC) is a leading innovator of intelligent cloud communications solutions. AudioCodes empowers enterprises and service providers to build and operate state-of-the-art voice networks, unified communications platforms, and AI-driven productivity tools. The cutting-edge portfolio includes cloud-native applications, advanced voice AI technologies, and comprehensive communication solutions tailored for the modern digital workplace. Trusted by global Fortune 500 companies and tier-1 operators worldwide, AudioCodes drives digital transformation through seamless integration, enhanced collaboration, and unparalleled communication experiences.
For more information, visit http://www.audiocodes.com.
Follow AudioCodes’ social media channels:
AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, Twitter, Facebook, and YouTube.
Statements concerning AudioCodes’ business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are “forward-looking statements” as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes’ industry and target markets in particular; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes’ and its customers’ products and markets; timely product and technology development, upgrades and the ability to manage changes in market conditions as needed; possible need for additional financing; the ability to satisfy covenants in the Company’s loan agreements; possible disruptions from acquisitions; the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes’ business; possible adverse impact of the COVID-19 pandemic on our business and results of operations; the effects of the current terrorist attacks by Hamas in Israel, and the war and hostilities between Israel and Hamas, and Israel and Hezbollah as well as the possibility that this could develop into a broader regional conflict involving Israel with other parties, may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; and other factors detailed in AudioCodes’ filings with the U.S. Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.
©2024 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What’s Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, VocaNom, AudioCodes One Voice, AudioCodes Meeting Insights, AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.
Summary financial data follows
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
September 30,
December 31,
2024
2023
(Unaudited)
(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 23,522
$ 30,546
Short-term and restricted bank deposits
202
212
Short-term marketable securities
24,245
7,438
Trade receivables, net
58,081
51,125
Other receivables and prepaid expenses
12,085
9,381
Inventories
33,677
43,959
Total current assets
151,812
142,661
LONG-TERM ASSETS:
Long-term Trade receivables
$ 15,856
$ 16,798
Long-term marketable securities
37,308
65,732
Long-term financial investments
3,123
2,730
Deferred tax assets
4,577
6,208
Operating lease right-of-use assets
33,207
36,712
Severance pay funds
17,132
17,202
Total long-term assets
111,203
145,382
PROPERTY AND EQUIPMENT, NET
25,236
10,893
GOODWILL, INTANGIBLE ASSETS AND OTHER, NET
38,182
38,581
Total assets
$ 326,433
$ 337,517
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables
5,479
7,556
Other payables and accrued expenses
24,066
29,943
Deferred revenues
39,390
38,820
Short-term operating lease liabilities
5,859
7,878
Total current liabilities
74,794
84,197
LONG-TERM LIABILITIES:
Accrued severance pay
$ 15,893
$ 16,662
Deferred revenues and other liabilities
18,110
17,142
Long-term operating lease liabilities
30,742
31,404
Total long-term liabilities
64,745
65,208
Total shareholders’ equity
186,894
188,112
Total liabilities and shareholders’ equity
$ 326,433
$ 337,517
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Nine months ended
Three months ended
September 30,
September 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Revenues:
Products
$ 84,647
$ 91,299
$ 27,750
$ 31,039
Services
95,975
89,525
32,493
30,552
Total Revenues
180,622
180,824
60,243
61,591
Cost of revenues:
Products
34,123
36,568
11,380
11,347
Services
29,057
28,299
9,563
9,307
Total Cost of revenues
63,180
64,867
20,943
20,654
Gross profit
117,442
115,957
39,300
40,937
Operating expenses:
Research and development, net
39,780
43,363
12,666
13,960
Selling and marketing
52,427
52,747
17,607
17,221
General and administrative
12,146
12,657
4,155
3,977
Total operating expenses
104,353
108,767
34,428
35,158
Operating income
13,089
7,190
4,872
5,779
Financial income (expenses), net
(195)
1,688
(614)
492
Income before taxes on income
12,894
8,878
4,258
6,271
Taxes on income, net
(4,358)
(3,753)
(1,579)
(2,019)
Net income
$ 8,536
$ 5,125
$ 2,679
$ 4,252
Basic net earnings per share
$ 0.28
$ 0.16
$ 0.09
$ 0.14
Diluted net earnings per share
$ 0.28
$ 0.16
$ 0.09
$ 0.14
Weighted average number of shares used in computing basic
net earnings per share (in thousands)
30,239
31,642
30,218
31,390
Weighted average number of shares used in computing diluted
net earnings per share (in thousands)
30,769
31,807
30,778
31,374
AUDIOCODES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
U.S. dollars in thousands, except per share data
Nine months ended
Three months ended
September 30,
September 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
GAAP net income
$ 8,536
$ 5,125
$ 2,679
$ 4,252
GAAP net earnings per share
$ 0.28
$ 0.16
$ 0.09
$ 0.14
Cost of revenues:
Share-based compensation (1)
274
304
99
94
Amortization expenses (2)
366
379
122
122
Lease expenses (6)
304
322
–
322
944
1,005
221
538
Research and development, net:
Share-based compensation (1)
1,642
2,090
471
649
Deferred payments expenses (3)
–
375
–
125
Lease expenses (6)
342
362
–
362
1,984
2,827
471
1,136
Selling and marketing:
Share-based compensation (1)
2,255
3,380
783
1,050
Amortization expenses (2)
33
33
11
11
Deferred payments expenses (3)
–
375
–
125
Lease expenses (6)
38
40
–
40
2,326
3,828
794
1,226
General and administrative:
Share-based compensation (1)
2,113
3,242
679
814
Lease expenses (6)
76
80
–
80
2,189
3,322
679
894
Financial expenses (income):
Exchange rate differences (4)
(754)
(1,237)
55
(767)
Income taxes:
Taxes on income, net (5)
422
1,247
–
1,023
Non-GAAP net income
$ 15,647
$ 16,117
$ 4,899
$ 8,302
Non-GAAP diluted net earnings per share
$ 0.50
$ 0.49
$ 0.16
$ 0.25
Weighted average number of shares used in computing Non-GAAP
diluted net earnings per share (in thousands)
31,534
32,870
31,480
32,576
(1) Share-based compensation expenses related to options and restricted share units granted to employees and others.
(2) Amortization expenses related to intangible assets.
(3) Expenses related to deferred payments in connection with the acquisition of Callverso Ltd.
(4) Financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.
(5) Tax impact which relates to our non-GAAP adjustments.
(6) In Q1 2024, non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company’s new headquarters.
Note: Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information.
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
Nine months ended
Three months ended
September 30,
September 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net income
$ 8,536
$ 5,125
$ 2,679
$ 4,252
Adjustments required to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
2,788
1,972
1,004
652
Amortization of marketable securities premiums and
accretion of discounts, net
885
1,027
270
315
Decrease in accrued severance pay, net
(699)
(493)
(220)
(221)
Share-based compensation expenses
6,284
9,016
2,032
2,607
Decrease in deferred tax assets, net
826
1,164
762
996
Cash financial loss (income), net
137
(397)
(17)
(65)
Decrease in operating lease right-of-use assets
4,755
6,688
1,198
2,406
Decrease in operating lease liabilities
(3,931)
(8,411)
(496)
(4,056)
Decrease (increase) in trade receivables, net
(6,014)
4,645
(2,247)
(2,294)
Decrease (increase) in other receivables and prepaid
expenses
(2,704)
1,572
(2,939)
(339)
Decrease (increase) in inventories
10,119
(8,605)
4,172
907
Increase (decrease in trade payables
(2,077)
(4,700)
377
(482)
Increase (decrease) in other payables and accrued
expenses
(594)
(6,414)
1,011
(1,480)
Increase (decrease) in deferred revenues
1,631
3,423
266
(3,020)
Net cash provided by operating activities
19,942
5,612
7,852
178
Cash flows from investing activities:
Proceeds from short-term deposits
10
5,008
4
2
Proceeds of marketable securities
9,991
3,846
9,991
3,846
Proceeds from financial investment
76
–
29
–
Proceeds from redemption of marketable securities
3,450
3,084
–
1,084
Proceeds from redemption of financial investments
–
14,094
–
3,051
Purchase of financial investments
(675)
(81)
(675)
(81)
Purchase of property and equipment
(20,768)
(5,301)
(5,505)
(2,038)
Net cash provided by (used in) investing activities
(7,916)
20,650
3,844
5,864
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
Nine months ended
Three months ended
September 30,
September 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Cash flows from financing activities:
Purchase of treasury shares
(8,340)
(11,973)
(3,586)
(9,047)
Cash dividends paid to shareholders
(10,896)
(11,399)
(5,443)
(5,681)
Proceeds from issuance of shares upon exercise of options
186
254
6
140
Net cash used in financing activities
(19,050)
(23,118)
(9,023)
(14,588)
Net increase (decrease) in cash, cash equivalents, and restricted cash
(7,025)
3,144
2,672
(8,546)
Cash, cash equivalents and restricted cash at beginning of period
30,546
24,535
20,849
36,225
Cash, cash equivalents and restricted cash at end of period
$ 23,522
$ 27,679
$ 23,522
$ 27,679
Company Contacts
Niran Baruch,
Chief Financial Officer
AudioCodes
Tel: +972-3-976-4000
Roger L. Chuchen,
VP, Investor Relations
AudioCodes
Tel: 732-764-2552
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Chunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Third Quarter of 2024
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TAIPEI, Nov. 6, 2024 /PRNewswire/ — Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (“Chunghwa” or “the Company”) today reported its un-audited operating results for the third quarter of 2024. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards (“T-IFRSs”) on a consolidated basis.
(Comparisons throughout the press release, unless otherwise stated, are made with regard to the prior year period.)
Third Quarter 2024 Financial Highlights
Total revenue increased by 3.6% to NT$ 55.61 billion.Consumer Business Group revenue increased by 2.1% to NT$ 34.43 billion.Enterprise Business Group revenue increased by 5.9% to NT$ 17.60 billion.International Business Group revenue increased by 1.4% to NT$ 2.37 billion.Total operating costs and expenses increased by 4.8% to NT$ 44.23 billion.Operating income decreased by 0.8% to NT$ 11.38 billion.EBITDA decreased by 0.5% to NT$ 21.26 billion.Net income attributable to stockholders of the parent decreased by 1% to NT$ 9.01 billion.Basic earnings per share (EPS) was NT$1.16.Operating income, net income attributable to stockholders of the parent, and EPS all exceeded our proposed guidance.
“The Company delivered solid results in this quarter highlighted by exceptional operational performance across all business segments,” stated Mr. Chih-Cheng Chien, Chairman and CEO of Chunghwa Telecom. “We have set a new record for total revenue for the same quarter over the past seven years, reinforcing our leadership in Taiwan’s mobile market with a revenue market share of 40.3% and a subscriber share of 37.8%. Our blended 5G penetration rate continued to expand to 33.5%, maintaining leadership in Taiwan. Additionally, thanks to our expansion on cross-tier upgrade promotion package to include 1Gbps service offerings, our 1 Gbps subscriber net-adds doubled during the quarter.”
“Looking into the details of our three business groups, the Consumer Business Group maintained its healthy growth trajectory, driven by 5G migration and increasing postpaid subscribers, steady fixed broadband revenue, and higher OTT revenue from our exclusive broadcast of the Paris Olympic Games. We achieved double-digit year-over-year growth in video-related revenue, driven by the increasing subscriptions to our video platforms, which have exceeded 3 million,” said Mr. Rong-Shy Lin, President of Chunghwa Telecom. “Our Enterprise Business Group performed as anticipated, driven by a robust 22% year-over-year growth in our ICT business revenue. Notably, revenue from 5G private networks and big data analysis surged significantly, fueled by the 5G O-RAN project and smart government initiatives. Furthermore, we are pleased with the performance of our International Business Group, where income before tax increased by 11% year-over-year, primarily driven by our overseas ICT business. Excitingly, our European subsidiary in Frankfurt commenced operations on July 30, and we are well-prepared to offer ICT solutions to high-tech European markets,” added Mr. Lin.
“In terms of development of advanced networks and technologies, Chunghwa Telecom continues to lead the industry by initiating the world’s first IOWN APN between Taiwan and Japan with NTT Group during the quarter. We are also the exclusive provider of OneWeb low-earth-orbit satellite, with more than 90% coverage in Taiwan by the third quarter,” Mr. Chien continued. “On the ESG front, we have received SBTi’s verification for our Net-Zero greenhouse gas emissions target, making us the first operator in Taiwan to commit to achieving Net-Zero by 2045, ahead of the world roadmap of 2050. Additionally, we have obtained carbon footprint verification for all of our service centers nationwide, distinguishing us as the only telecom company in Taiwan to achieve this milestone. We remain dedicated to leading the way in ESG best practices.”
“Our solid performance across various sectors underscores our commitment to providing high-quality, advanced, and convenient telecom services. We remain confident that our new management team will continue to drive our progress and create value for our stakeholders,” Mr. Chien added.
Revenue
Chunghwa Telecom’s total revenues for the third quarter of 2024 increased by 3.6% to NT$ 55.61 billion.
Consumer Business Group’s revenue for the third quarter of 2024 increased by 2.1% YoY to NT$ 34.43 billion. Mobile service revenue increased 3% YoY, mainly due to 5G migration and increasing postpaid subscribers, the steady growth of fixed broadband revenue, and the increase of OTT revenue generated from our exclusive broadcast of the Paris Olympic Games. Sales revenue increased 1.3% YoY mainly due to the launch of iPhone 16 series. CBG’s income before tax decreased 0.6% YoY, mainly due to the one-time broadcasting rights fee of the Paris Olympic Games.
Enterprise Business Group’s revenue for the third quarter of 2024 increased 5.9% YoY to NT$ 17.60 billion, mainly driven by our robust growth in ICT business, which saw a 22% year-over-year increase in revenue, fueled by the strong performance of our emerging services. The decline in mobile and fixed voice services offset the growth of 5G migration and speed upgrades, resulting in a slight year-over-year decrease in EBG’s mobile and fixed-line revenues in the third quarter, while income before tax also experienced a year-over-year decrease.
International Business Group’s revenue for the third quarter of 2024 increased by 1.4% to NT$ 2.37 billion, while its income before tax increased 11% YoY. The positive growth was mainly due to the vibrant demand for ICT business in the international market.
Operating Costs and Expenses
Total operating costs and expenses for the third quarter of 2024 increased by 4.8% to NT$ 44.23 billion, mainly due to higher manpower cost and the one-time broadcasting rights fee of the Paris Olympic Games.
Operating Income and Net Income
Operating income for the third quarter of 2024 decreased by 0.8% to NT$ 11.38 billion. The operating margin was 20.5%, as compared to 21.4% in the same period of 2023. Net income attributable to stockholders of the parent decreased by 1% to NT$ 9.01 billion. Basic earnings per share was NT$1.16.
Cash Flow and EBITDA
Cash flow from operating activities, as of September 30th, 2024, decreased by 0.3% year over year to NT$ 49.76 billion, mainly due to a rise in settlement of tax payments, which were deferred to Q4 last year.
Cash and cash equivalents, as of September 30th, 2024, decreased by 2.5% to NT$ 31.22 billion as compared to that as of September 30th, 2023.
EBITDA for the third quarter of 2024 was NT$ 21.26 billion, decreasing by 0.5% year over year. EBITDA margin was 38.23%, as compared to 39.84% in the same period of 2023.
Business Highlights
Mobile
As of September 30th, 2024, Chunghwa Telecom had 13.01 million mobile subscribers, representing a 0.6% year-over-year increase. In the third quarter, total mobile service revenue increased by 2% to NT$ 16.75 billion, while mobile post-paid ARPU excluding IoT SIMs maintained stable and flat year over year at NT$ 552.
Fixed Broadband/HiNet
As of September 30th, 2024, the number of broadband subscribers slightly increased by 0.7% to 4.42 million. The number of HiNet broadband subscribers increased by 1.3% to 3.73 million. In the third quarter, total fixed broadband revenue grew 3.4% year over year to NT$ 11.32 billion, while ARPU increased 1.5% to NT$ 786.
Fixed line
As of September 30th, 2024, the number of fixed-line subscribers was 8.95 million.
Financial Statements
Financial statements and additional operational data can be found on the Company’s website at http://www.cht.com.tw/en/home/cht/investors/financials/quarterly-earnings
NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about Chunghwa’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwa’s filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this press release reflect the current belief of Chunghwa as of the date of this press release and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
NON-GAAP FINANCIAL MEASURES
To supplement the Company’s consolidated financial statements presented in accordance with International Financial Reporting Standards pursuant to the requirements of the Financial Supervisory Commission, or T-IFRSs, Chunghwa Telecom also provides EBITDA, which is a “non-GAAP financial measure”. EBITDA is defined as consolidated net income (loss) excluding (i) depreciation and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other financing costs and derivative transactions), (iii) other income, net, (iv) income tax, (v) (income) loss from discontinued operations.
In managing the Company’s business, Chunghwa Telecom relies on EBITDA as a means of assessing its operating performance because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax (iv) other expenses or income not related to the operation of the business.
CAUTIONS ON USE OF NON-GAAP FINANCIAL MEASURES
In addition to the consolidated financial results prepared under T-IFRSs, Chunghwa Telecom also provide non-GAAP financial measures, including “EBITDA”. The Company believes that the non-GAAP financial measures provide investors with another method for assessing its operating results in a manner that is focused on the performance of its ongoing operations.
Chunghwa Telecom’s management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company’s operating results, as well as when forecasting and analyzing future periods. However, the Company recognizes that:
these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Company’s T-IFRSs financial measures;these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Company’s T-IFRSs financial measures;these non-GAAP financial measures should not be considered to be superior to the Company’s T-IFRSs financial measures; andthese non-GAAP financial measures were not prepared in accordance with T-IFRSs and investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principle.
Further, these non-GAAP financial measures may be unique to Chunghwa Telecom, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company’s results to the results of other companies. Readers are cautioned not to view non-GAAP results as a substitute for results under T-IFRSs, or as being comparable to results reported or forecasted by other companies.
About Chunghwa Telecom
Chunghwa Telecom (TAIEX 2412, NYSE: CHT) (“Chunghwa” or “the Company”) is Taiwan’s largest integrated telecommunications services company that provides fixed-line, mobile, broadband, and internet services. The Company also provides information and communication technology services to corporate customers with its big data, information security, cloud computing and IDC capabilities, and is expanding its business into innovative technology services such as IoT, AI, etc. Chunghwa has been actively and continuously implemented environmental, social and governance (ESG) initiatives with the goal to achieve sustainability and has won numerous international and domestic awards and recognitions for its ESG commitments and best practices. For more information, please visit our website at www.cht.com.tw
Contact: Angela Tsai
Phone: +886 2 2344 5488
Email: chtir@cht.com.tw
View original content:https://www.prnewswire.com/news-releases/chunghwa-telecom-reports-un-audited-consolidated-operating-results-for-the-third-quarter-of-2024-302297363.html
SOURCE Chunghwa Telecom
Technology
ATFX Wins Two Awards at the 2024 International Investor Awards
Published
6 mins agoon
November 6, 2024By
HONG KONG, Nov. 6, 2024 /PRNewswire/ — ATFX is proud to announce its achievement of two esteemed awards at the 2024 International Investor Awards, reinforcing its position as a leader in the global forex trading sector. The company was awarded “Best Global Forex Broker 2024”, a testament to its unwavering commitment to excellence, customer satisfaction, and innovative trading solutions. Additionally, Joe Li, the Founder and Chairman of ATFX, received the accolade for “Best Global Forex Chairman 2024”, highlighting his outstanding leadership and vision in driving the company’s remarkable growth and international expansion.
Joe Li’s leadership has been instrumental in ATFX’s journey. As the Chairman of ATFX, he combines technical expertise with a keen understanding of market dynamics. Under his guidance, ATFX has not only expanded its global reach but has also developed ATFX Connect, which caters to the needs of institutional clients. Joe’s strategic vision emphasizes the importance of aligning with diverse cultures and establishing partnerships that drive sustainable growth.
As a fintech broker with a strong global footprint, ATFX operates in 23 locations and is licensed by renowned regulatory authorities, including the UK’s FCA, Cypriot CySEC, UAE’s SCA, Australian ASIC, and South African FSCA. This robust regulatory framework ensures that ATFX adheres to the highest standards of compliance and security, providing clients with a safe and reliable trading environment.
The recognition from the International Investor Awards highlights ATFX’s commitment to setting industry standards and its relentless pursuit of excellence. As the company continues to innovate and expand, it remains focused on delivering exceptional trading experiences that empower clients worldwide. ATFX is well-positioned to navigate the evolving landscape of forex trading and maintain its status as a trusted global broker.
For more information about ATFX, please visit https://www.atfx.com
View original content:https://www.prnewswire.com/apac/news-releases/atfx-wins-two-awards-at-the-2024-international-investor-awards-302297290.html
SOURCE ATFX
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