Frontier Communications Corporation (OTC: FTRCQ) (Frontier Communications) announced today that it has priced its previously announced offering of $1.150 billion aggregate principal amount of First Lien Secured Notes due 2027 (the First Lien Secured Notes) in a private transaction. The First Lien Secured Notes will bear interest at 5.875% per year and will be sold at a price equal to 100% of the principal thereof. The settlement of the First Lien Secured Notes is expected to occur on or about October 8, 2020, subject to customary closing conditions.
Frontier Communications intends to use the proceeds from the offering, together with proceeds of a $500 million new first lien term loan facility (the New Term Loan Facility) and cash on hand to (i) repay in full the $1.650 billion principal balance of the existing prepetition 8.000% First Lien Secured Notes due 2027 and (ii) pay related interest, fees and expenses incurred in connection therewith. The offering of First Lien Secured Notes is subject to market and other conditions. The New Term Loan Facility will be entered into at a price equal to 98.50% of its face value and will bear interest at a rate equal to, at the option of Frontier Communications, either LIBOR plus 4.75% or Base Rate plus 3.75%, with a 1.00% LIBOR floor.
As previously disclosed, on April 14, 2020, Frontier Communications and certain of its subsidiaries commenced voluntary cases (the Chapter 11 Cases) under Chapter 11 of the United States Bankruptcy Code (Bankruptcy Code) in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). On August 21, 2020, the Bankruptcy Court confirmed Frontier Communications plan of reorganization (the Plan) for the resolution of the outstanding claims against and interests in Frontier Communications pursuant to section 1121(a) of the Bankruptcy Code. The implementation of the Plan is dependent upon a number of conditions typical in similar reorganizations, including the obtainment of regulatory approval. On September 17, 2020, the Bankruptcy Court issued a final order authorizing Frontier Communications to obtain debtor-in-possession financing, including approval for this offering.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sales of securities mentioned in this press release in any jurisdiction in which such offer, solicitation or sale would be unlawful.
All offers of the First Lien Secured Notes were made only by means of a private offering memorandum to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended (the Securities Act) and to non-U.S. persons outside of the United States under Regulation S under the Securities Act. The First Lien Secured Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
About Frontier Communications
Frontier Communications Corporation (OTC: FTRCQ) offers a variety of services to residential and business customers over its fiber-optic and copper networks in 25 states, including video, high-speed internet, advanced voice, and Frontier Secure digital protection solutions. Frontier Business„¢ offers communications solutions to small, medium, and enterprise businesses.
This press release contains forward-looking statements related to future events. Forward-looking statements address Frontier Communications expected future business, financial performance, and financial condition, and contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “may,” “will,” “would,” or “target.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For Frontier Communications, particular uncertainties that could cause actual results to be materially different than those expressed in such forward-looking statements include: our ability to continue as a going concern; our ability to successfully consummate the restructuring of our existing debt, existing equity interests, and certain other obligations (the Restructuring), and emerge from the Chapter 11 Cases in Bankruptcy Court, including by satisfying both the conditions in the Plan and the conditions and milestones in the restructuring support agreement; our ability to improve our liquidity and long-term capital structure and to address our debt service obligations through the Restructuring and the potential adverse effects of the Chapter 11 Cases on our liquidity and results of operations; our ability to maintain relationships with suppliers, customers, employees and other third parties as a result of the Restructuring and the Chapter 11 Cases; the effects of the Restructuring and the Chapter 11 Cases on us and the interests of various constituents; risks and uncertainties associated with the Restructuring, including our ability to satisfy the conditions precedent for effectiveness of and successfully consummate the Restructuring in accordance with the Plan under the Chapter 11 Cases; our ability to comply with the restrictions expected to be imposed by covenants in debtor-in-possession and exit financing; the length of time that we will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 Cases; risks associated with third party motions in the Chapter 11 Cases, which may interfere with the Companys ability to consummate the Restructuring; increased administrative and legal costs related to the Chapter 11 process; declines in revenue from our voice services, switched and nonswitched access and video and data services that we cannot stabilize or offset with increases in revenue from other products and services; declines in Adjusted EBITDA relative to historical levels that we are unable to offset through potential EBITDA enhancements; our ability to successfully implement strategic initiatives, including opportunities to enhance revenue and realize productivity improvements; our ability to effectively manage our operations, operating expenses, capital expenditures, debt service requirement and cash paid for income taxes and liquidity; competition from cable, wireless and wireline carriers, satellite, and over the top companies, and the risk that we will not respond on a timely or profitable basis; our ability to successfully adjust to changes in the communications industry, including the effects of technological changes and competition on our capital expenditures, products and service offerings; risks related to disruption in our networks, infrastructure and information technology that result in customer loss and/or incurrence of additional expenses; the impact of potential information technology or data security breaches or other cyber-attacks or other disruptions; our ability to retain or attract new customers and to maintain relationships with customers, employees or suppliers; our ability to secure, continue to use or renew intellectual property and other licenses used in our business; changes to our board of directors and management team upon our emergence from bankruptcy or in anticipation of emergence, and our ability to hire or retain key personnel; our ability to dispose of certain assets or asset groups on terms that are attractive to us, or at all; the effects of changes in the availability of federal and state universal service funding or other subsidies to us and our competitors and our ability to obtain future federal and state universal service funding and other subsidies; our ability to meet our Connect America Fund (CAF) Phase II obligations and the risk of penalties or obligations to return certain CAF Phase II funds; our ability to defend against litigation and potentially unfavorable results from current pending and future litigation; our ability to comply with applicable federal and state consumer protection requirements; the effects of state regulatory requirements that could limit our ability to transfer cash among our subsidiaries or dividend funds up to the parent company; the effects of governmental legislation and regulation on our business, including costs, disruptions, possible limitations on operating flexibility and changes to the competitive landscape resulting from such legislation or regulation; the impact of regulatory, investigative and legal proceedings and legal compliance risks; government infrastructure projects (such as highway construction) that impact our capital expenditures; continued reductions in switched access revenues as a result of regulation, competition or technology substitutions; our ability to effectively manage service quality in the states in which we operate and meet mandated service quality metrics; the effects of changes in income tax rates, tax laws, regulations or rulings, or federal or state tax assessments, including the risk that such changes may benefit our competitors more than us, as well as potential future decreases in the value of our deferred tax assets; the effects of changes in accounting policies or practices, including potential future impairment charges with respect to our intangible assets or additional losses on assets held for sale; the effects of increased medical expenses and pension and postemployment expenses; our ability to successfully renegotiate union contracts; changes in pension plan assumptions, interest rates, discount rates, regulatory rules and/or the value of our pension plan assets, which could require us to make increased contributions to the pension plan in 2020 and beyond; adverse changes in economic, political and market conditions in the areas that we serve, the U.S. and globally, including but not limited to, changes resulting from epidemics, pandemics and outbreaks of contagious diseases, including the coronavirus global pandemic, or other adverse public health developments; and potential adverse impacts of the COVID-19 pandemic on our business and operations, including potential disruptions to the work of our employees arising from health and safety measures such as social distancing and working remotely, our ability to effectively manage increased demand on our network, our ability to maintain relationships with our current or prospective customers and vendors as well as their abilities to perform under current or proposed arrangements with us, and stress on our supply chain. Forward-looking statements are also subject to the risk factors and cautionary language described from time to time in the reports the Company files with the U.S. Securities and Exchange Commission, including those in the Companys most recent Annual Report on Form 10-K and any updates thereto in the Companys Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These risks and uncertainties may cause actual future results to be materially different than those expressed in such forward-looking statements. Frontier Communications has no obligation to update or revise these forward-looking statements and does not undertake to do so.
Sr. Analyst, Treasury and Investor Relations
Vice President, Corporate Communications and External Affairs
Meaghan Repko / Jed Repko
Joele Frank Wilkinson Brimmer Katcher
DFA Awards 2020 Winners Announcement: 3 Design Trendsetters, 16 Young Designers and 197 Outstanding Projects Honoured for Design Excellence
HONG KONG, CHINA – Media OutReach – 30 October 2020 – DFA Awards 2020 is pleased to announce its recipients for the year of 2020. Three design trendsetters have been recognised under the three individual awards, namely the DFA Lifetime Achievement Award (DFA LAA), the DFA Design Leadership Award (DFA DLA), and the DFA World’s Outstanding Chinese Designer (DFA WOCD). In addition, 197 design projects have been recognised under the DFA Design for Asia Awards (DFA DFAA), and 16 young Hong Kong designers under the DFA Hong Kong Young Design Talent Award (DFA HKYDTA).
Organised by the Hong Kong Design Centre (HKDC) with Create Hong Kong (CreateHK) of the Hong Kong Special Administrative Region Government as the lead sponsor, the DFA Awards aims to reinforcing the importance of designers within society. The awards also celebrates design leadership as well as exemplary designs and projects with Asia perspectives towards the globe, and since 2005 it has recognised the rising force of emerging Hong Kong designers.
Commenting on this year’s awards, Professor Eric C. Yim, JP, Chairman of the HKDC, said, “This year, we have found ourselves in a world facing global challenges that demand a unified global response. We at the Hong Kong Design Centre believe that design can provide a way of helping the world to navigate through the storms and better adapt to the new normal. This year’s awardees are all influencers in the design community. They have innovated to create humane designs that are able to solve problems, enhance our lives, connect our communities and sustain our cultures.”
DFA Awards 2020 Press Kit + High Res photos: http://www.hkdc.hk/download/awards/DFAAWARDS2020_PRESSKIT.zip
In awarding the DFA Awards’ highest and most prestigious design honours for the year, the judging panel recognised the extraordinary contributions to the design community of three design trendsetters:
DFA Lifetime Achievement Award 2020 (DFA LAA)
Executive Chair, IDEO
The DFA LAA signifies the high respect of the design community for individuals who have made life-long contributions to the field. Tim Brown championed a design led, human-centered approach and has helped to shape the face of contemporary design, creating a legacy that is acclaimed by design professionals across the world.
DFA Design Leadership Award 2020 (DFA DLA)
CEO and Founder, DJI
The DFA DLA recognises global business leaders who use strategic and innovative design to create successful and sustainable businesses. This year’s recipient is Frank Wang, founder of DJI, a world-leading manufacturer of civilian drone. He has successfully demonstrated the important relationship between strong corporate leadership and design excellence in his business.
DFA World’s Outstanding Chinese Designer 2020 (DFA WOCD)
Stanley WONG (anothermountainman)
Founder & Creative Director,
The DFA WOCD honours Chinese designers who have made outstanding design achievements and won international recognition for their work. The winner, Stanley Wong, is responsible for creating numerous impressive communication designs drawing on Hong Kong culture, and is devoted to promoting design through educational, institutional and social involvement. Having joined the prestigious Alliance Graphique Internationale (AGI) since 2004, he is a well-respected member of the international graphic design community and undoubtedly an important role model for young designers in Hong Kong and overseas alike.
(Please refer to Appendix 1 for detailed biographies of the winners.)
Recognition of exceptional designs: DFA Design for Asia Awards
Being a part of the flagship programme of the HKDC, the DFA Design for Asia Awards continues to acknowledge outstanding design projects that embody Asian aesthetics and culture, and that have inspired wider Asian design trends. This year, DFA DFAA received more than 1,000 entries from 20 economies by open entry. A total of 197 awardees were recognised, including 12 Grand Awards, 8 Grand Award with Special Mention and 177 category awards. These awards covered projects and practitioners from 23 categories in four major design disciplines: Apparel & Accessory Design, Communication Design, Environmental Design, and Product & Industrial Design. (Please refer to Appendix 2 for the complete list of winners.)
2020 is a year full of trials and the world is ready for some changes. In response to the unusual circumstances this year, innovative ideas have emerged for rebuilding people’s relationship with the natural world, connecting the community, and fostering cultural sustainability. Some of the awarded projects promote the reconnection with nature through communication and environmental designs. Some stay on track with design thinking, providing designs and solutions for social problems, medical needs, industrial needs and more. Some praise the uniqueness of cultures and try to remind people the importance of cultural conservation through cross-media presentations. This year’s awardees come from professional designing firms all around the world with projects in Asia. Japan was the biggest winner by economy, taking away 61 awards, followed by Mainland China and Hong Kong with 48 and 21 awards respectively. Other winning company locations included Denmark, Korea, Lithuania, Singapore, Taiwan, Thailand, the Netherlands, the United Arab Emirates and more.
Fostering young creative talent: DFA Hong Kong Young Design Talent Award
Since 2005, the DFA Hong Kong Young Design Talent Award has nurtured the development of emerging Hong Kong designers by providing them with valuable opportunities to gain overseas experience. The 16 awardees for 2020 are all Hong Kong design practitioners or graduates of 35 years old or under who have made refreshing contributions to Hong Kong’s creative industries across a range of disciplines. The awarded apparel and accessory designers are the emerging new players on the global stage who bring in insights from overseas to Hong Kong’s fashion industry. Communication designers create works with in-depth exploration on typography, visual identity, graphic designs, and also new design concepts such as story design, that have contributed to the society and the commercial world. Environmental designers have clear visions on achieving environmental sustainability, engaging social involvement on architectural projects, sustaining traditional cultures and values through innovative design ideas.
This year, 13 of them will receive a financial sponsorship amount up to HK$5,000,000 in total to undertake 6 to 12-month work experiences or 6 to 18-month study experiences abroad. Sponsored by CreateHK, the Hong Kong Design Institute and the School of Design of the Hong Kong Polytechnic University, these young designers will have the opportunity to gain unique experience at world-renowned design firms or institutions. Over the years, the DFA HKYDTA has provided sponsorships to over 100 young talents, helping them to gain insights into the global design industry and return to Hong Kong as experienced design leaders for the city’s creative businesses. (Please refer to Appendix 3 for the list of winners.)
About DFA Awards (www.dfaawards.com)
In 2003, the Hong Kong Design Centre has launched the DFA Awards to underpin the role of designers in society, to celebrate design leadership and exemplary designs and projects with commercial success or impact in Asia, as well as to recognise the rising force of emerging Hong Kong designers since 2005. The DFA Awards, through its five major award programmes, has grown in its international influence in Asia. The five award programmes include DFA Lifetime Achievement Award, DFA Design Leadership Award, DFA World’s Outstanding Chinese Designer, DFA Design for Asia Awards and DFA Hong Kong Young Design Talent Award.
About Hong Kong Design Centre (www.hkdesigncentre.org)
Hong Kong Design Centre (HKDC) is a non-governmental organisation, and was founded in 2001 as a strategic partner of the HKSAR Government in establishing Hong Kong as an international centre of design excellence in Asia. Our public mission is to promote wider and strategic use of design and design thinking to create business value and improve societal well-being, with the aim of advancing Hong Kong as an international design centre in Asia.
HKDC’s flagship programmes include Business of Design Week (BODW; since 2002) — Asia’s leading annual event on design, innovation and brands; DFA Awards (since 2003) — a well-recognised annual awards that celebrate outstanding designs with Asian perspectives; and Knowledge of Design Week (KODW; since 2006) — an annual thematic programme that gathers the global design community to explore how design can solve complex challenges of our society.
We also manage a Design Incubation Programme and Fashion Incubation Programme (since 2012 and 2016) — 2-year programmes to nurture future design and fashion entrepreneurs; and launched FASHION ASIA HONG KONG (since 2016) — an initiative combining conversations, interactions and cultural exchanges to position the city as an Asian hub for fashion trade and business development.
About Create Hong Kong (www.createhk.gov.hk)
Create Hong Kong (CreateHK) is a dedicated agency set up by the HKSAR Government in June 2009. It is under the Communications and Creative Industries Branch of the Commerce and Economic Development Bureau and dedicated to spearheading the development of creative industries in Hong Kong. Its strategic foci are nurturing talent and facilitating start-ups, exploring markets, and promoting Hong Kong as Asia’s creative capital and fostering a creative atmosphere in the community. CreateHK sponsors the DFA Design for Asia Awards since 2011 and the flagship programmes organised by Hong Kong Design Centre, among other projects to promote Hong Kong design.
Disclaimer: The Government of the Hong Kong Special Administrative Region provides funding support to the project only, and does not otherwise take part in the project. Any opinions, findings, conclusions or recommendations expressed in these materials/events (or by members of the project team) are those of the project organizers only and do not reflect the views of the Government of the Hong Kong Special Administrative Region, the Communications and Creative Industries Branch of the Commerce and Economic Development Bureau, Create Hong Kong, the CreateSmart Initiative Secretariat or the CreateSmart Initiative Vetting Committee.
FWD wins Five Awards at Hong Kong Insurance Awards 2020 for outstanding performance and innovation
HONG KONG, CHINA – Media OutReach – 30 October 2020 – FWD Hong Kong (‘FWD’) won five awards at the Hong Kong Insurance Awards (HKIA) 2020, an event organised by the Hong Kong Federation of Insurers to recognise outstanding performance and innovation in the insurance industry.
FWD Hong Kong won awards in five categories at the Hong Kong Insurance Awards (HKIA) 2020, which included the top prize in Outstanding Training & Development after being shortlisted as a top 3 finalist. These awards are recognition of the hard work and dedication of our people, the excellence of our development programmes, and the ground-breaking nature of our products and services.
FWD won the top prize in the Outstanding Training & Development category for the breadth and depth of its training initiatives, which included a leadership development programme partnered with the prestigious INSEAD Business School.
The awards include one top prize in the Outstanding Training & Development category as well as four Top Three Finalist awards, won by Crisis OneCover in the Most Innovative Product/Service Award – Life Insurance (Health) category, Cash-up in the Most Innovative Product/Service Award – Life Insurance (Wealth) category, Andy Chik in the Outstanding Community Intermediary of the Year category, and Jessie Chiu in the Outstanding Young Professional of the Year — Intermediary category.
“I’m so proud of our team who continually raise the bar despite the challenges we’ve faced, especially in this past year. These prestigious awards are a fantastic recognition of the hard work and dedication of our people, the excellence of our development programmes, and the ground-breaking nature of our products and services,” said Ken Lau, FWD’s Managing Director of Greater China and Hong Kong CEO. “These award wins will also motivate us to continue passionately serving and celebrate living with our community and keep providing innovative solutions that are competitive, relevant, and accessible.”
Details of the awards won by FWD in 2020:
Outstanding Training & Development: FWD won the top prize in this category for the breadth and depth of its initiatives, including a leadership development programme in partnership with the prestigious INSEAD Business School, and a full range of both online and offline training courses on various critical subjects, such as technology, compliance and sales.
Most Innovative Product/Service Award – Life Insurance (Health): Crisis OneCover, the one-stop critical illness protection solution that covers the customer journey from prevention to treatment and recovery, covers more than 160 diseases up to the age of 100, and provides access to a large network of first class medical facilities across the Asia Pacific, was among the top three finalists.
Most Innovative Product/Service Award – Life Insurance (Wealth): FWD’s Cash-up Insurance Plan, a fintech product that enables mobile wallet users to start saving while benefiting from life insurance protection, was recognised as a top three finalist in this category. Cash-up, a collaboration with Octopus O! ePay that is accessible through a fully digital, intuitive interface, was praised for successfully integrating insurance and saving products with the mobile and digital era.
Outstanding Community Intermediary of the Year: Chief Regional Director of FWD’s tied agency Andy Chik Wing-keung was a top three finalist. Over his 21-year career in the financial planning industry, he has led his teams to overcome various obstacles and achieve success: under his leadership at FWD, his team has grown significantly and developed more than 700 elite intermediaries in just five years. Andy keeps training for endurance events such as marathons and ultra-marathons as his unique way of bringing to life FWD’s ‘Celebrate Living’ brand promise outside of work.
Outstanding Young Professional of the Year — Intermediary: FWD Branch Manager Jessie Chiu was also a top three finalist. Since Jessie joined FWD in 2016, she has grown her client base by 300 clients and has won many internal awards and industry recognitions, including Million Dollar Round Table (MDRT) and also Court of the Table (COT). In 2018, she established her own team and designed diversified training systems based on her unique management style.
About FWD Hong Kong & Macau
FWD Hong Kong offers life and medical insurance, general insurance, employee benefits, and financial planning. Its life insurance and general insurance operating entities have been assigned strong financial strength ratings by international rating agencies — FWD Life Insurance Company (Bermuda) Limited (incorporated in Bermuda with limited liability) is rated “A3” by Moody’s and “A” by Fitch; and FWD General Insurance Company Limited is rated “BBB+” by Fitch. FWD Macau provides a suite of life and medical insurance.
FWD Hong Kong & Macau is a part of the FWD Group, the insurance business of investment group, Pacific Century Group. FWD Group spans Hong Kong & Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam, Japan and Malaysia.
By creating fresh customer experiences with easy-to-understand products supported by digital technology, FWD aims to become a leading pan-Asian insurer that changes the way people feel about insurance.
Chunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Third Quarter of 2020
TAIPEI, Oct. 30, 2020 /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 2020. 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 2020 Financial Highlights
- Total revenue increased by 2.6% to NT$ 52.17 billion.
- Mobile communications revenue decreased by 8.5% to NT$ 21.63 billion.
- Internet revenue increased by 1.2% to NT$ 7.46 billion.
- Domestic fixed communications revenue increased by 20.9% to NT$ 18.85 billion.
- International fixed communications revenue decreased by 25.5% to NT$ 2.14 billion.
- Total operating costs and expenses increased by 2.2% to NT$ 41.73 billion.
- Net income attributable to stockholders of the parent increased by 3.2% to NT$ 8.35 billion.
- Basic earnings per share (EPS) was NT$1.08.
Mr. Chi-Mau Shieh, Chairman and CEO of Chunghwa Telecom, said, "We achieved solid results in the third quarter of 2020 as a result of our successful business strategy and the hard work of our employees throughout the company."
"We are pleased to announce we maintained our leading market position in the mobile business. With the launch of the iPhone 12 in October, we are optimistic to exceed our annual target for 5G service adoption by the year end. To prepare for the expected high demand, we managed to finish construction of more than 3,000 base stations by the end of the quarter. As we continued to migrate subscribers to higher-speed service, we also experienced an uplift in the ARPU of broadband business. MOD maintained its outstanding market position, and we will continue to enrich the content to attract more subscribers. Our ICT project experienced robust growth with an 84.9% revenue increase year over year, and with the ongoing trend in work and study from home, we continued to see strong demand of IDC services, which has driven us to work on our next business expansion."
"Backed by our clear, strategic focus, strict cost saving measures and strong balance sheet, we remain confident in our ability to achieve healthy and sustainable long-term growth while delivering sustainable value to our shareholders," Mr. Shieh concluded.
Chunghwa Telecom's total revenues for the third quarter of 2020 increased by 2.6% to NT$ 52.17 billion.
Mobile communications revenue for the third quarter of 2020 decreased by 8.5% to NT$ 21.63 billion. This was mainly due to the decrease in handset sales revenue and the decrease in mobile service revenue resulted from market competition, VoIP substitution, as well as the impact of COVID-19 on roaming revenue.
Internet business revenue for the third quarter of 2020 increased by 1.2% to NT$ 7.46 billion.
Domestic fixed revenue for the third quarter of 2020 increased by 20.9% year over year to NT$ 18.85 billion, mainly due to the increase of ICT project revenue driven by the completion of major projects.
International fixed communications revenue decreased by 25.5% to NT$ 2.14 billion.
Operating Costs and Expenses
Total operating costs and expenses for the third quarter of 2020 increased by 2.2% year over year to NT$ 41.73 billion, mainly due to the increase of ICT project costs, which offset the decrease of cost of goods sold and interconnection costs.
Operating Income and Net Income
Income from operations for the third quarter of 2020 increased by 7.1% to NT$ 10.72 billion. The operating margin was 20.6%, as compared to 19.7% in the same period of 2019. Net income attributable to stockholders of the parent increased by 3.2% to NT$ 8.35 billion. Basic earnings per share was NT$1.08.
Cash Flow and EBITDA
Cash flow from operating activities for the third quarter of 2020 increased by 3.9% year over year to NT$ 20.44 billion, mainly due to the increase in the collection of accounts receivable.
Cash and cash equivalents, as of September 30th, 2020, decreased by 26.4% to NT$ 17.71 billion as compared to that as of September 30th, 2019. The decrease was mainly attributable to the payment of concession fees for the 5G frequency spectrum auction, which was partially offset by the increase in short-term bills payable and bonds payable.
EBITDA for the third quarter of 2020 increased by 6.8% to NT$ 20.09 billion. EBITDA margin was 38.51%, as compared to 36.99% in the same period of 2019.
Business and Operational Highlights
The Company continued to execute its strategy of encouraging FTTx migration. As of September 30th, 2020, the number of FTTx subscribers reached 3.63 million, accounting for 83.1% of the Company's total broadband users. Moreover, the number of subscribers signing up for speeds of 100Mbps or higher increased by 11.3% year over year, reaching 1.72 million.
HiNet broadband subscribers decreased by 1.5% year over year to 3.60 million as of September 30th, 2020.
As of September 30th, 2020, Chunghwa Telecom had 11.27 million mobile subscribers, representing a 6.0% year-over-year increase.
As of September 30th, 2020, the Company maintained its leading position in the fixed-line market, with a total of 9.96 million subscribers.
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; and
- these 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. In recent years, Chunghwa has been actively involved in corporate social responsibility and has won domestic and international awards and recognition. For more information, please visit our website at www.cht.com.tw
SOURCE Chunghwa Telecom
FWD wins Five Awards at Hong Kong Insurance Awards 2020 for outstanding performance and innovation
HONG KONG, CHINA – Media OutReach – 30 October 2020 – FWD Hong Kong (‘FWD’) won five awards at the Hong Kong Insurance...
DFA Awards 2020 Winners Announcement: 3 Design Trendsetters, 16 Young Designers and 197 Outstanding Projects Honoured for Design Excellence
HONG KONG, CHINA – Media OutReach – 30 October 2020 – DFA Awards 2020 is pleased to announce its recipients for the year...
Chunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Third Quarter of 2020
TAIPEI, Oct. 30, 2020 /PRNewswire/ — Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported...
Pre-filled Syringes Market Will Register an Incremental Growth of Over $4 Billion by 2024 | Technavio
Technavio has been monitoring the pre-filled syringes market, operating under the healthcare sector. The latest report on pre-filled syringes market,...
Oilfield Biocides Market Demand to Show at Par Growth Due to COVID-19 Spread | Technavio
Scope of the report This report provides a detailed analysis of the oilfield biocides market by type (glutaraldehyde, chlorine, THPS,...
Night Vision Scope Market | Increasing Global Military Spending to Boost Market Growth | Technavio
The global night vision scope market size is poised to grow by USD 205.16 million during 2020-2024, progressing at a...
Kennedy Wilson Sells Baggot Plaza Office in Dublin, Ireland for $165 Million
Global real estate investment company Kennedy Wilson (NYSE:KW) has completed the sale of Baggot Plaza, a wholly-owned, unlevered Grade A...
New UPS Market Research Report- COVID-19 Analysis Based on Non-Residential and Residential Applications| Technavio
The new UPS market research from Technavio indicates negative growth in the short term as the business impact of COVID-19...
Joshua Kaplan Joins Wilson Sonsini Goodrich & Rosati in London
Wilson Sonsini Goodrich & Rosati, the premier provider of legal services to technology, life sciences, and growth enterprises worldwide, announced...
Pulp Market Will Witness Accelerating Degree of Concentration in the Vendor Landscape | Technavio
Technavio has been monitoring the pulp market, operating under the materials industry. The latest report on the pulp market, 2020-2024...