Chunghwa Telecom Co., Ltd.

Good afternoon, ladies and gentlemen. Welcome to the Zhonghua Telecom's conference call for the company's second quarter 2024 operating results. During the presentation, all lines will be on listen-only mode. When the briefing is finished, directions for submitting your questions will be given in the Q&A session. And for your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within an hour after the conference ends. Please visit CHT IR website, www.cht.com.tw slash IR under the IR calendar section. And now I would like to turn the call over to Ms. Angela Tsai, Assistant Vice President of Investor Relations. Thank you. Ms. Tsai, please proceed.

Thank you. I'm Angela Tai, Assistant Vice President of the Financial Department for Zhonghua Telecom. Welcome to our second quarter 2024 results conference call. Joining me on the call today are our Chairman and CEO Harrison Guo, President Eisen Lin, and Vincent Chen, our Chief Financial Officer. During today's call, management will begin by providing the CEO's message and our business overview of the second quarter. followed by a discussion of our segment performance and the financial results. After, we will move on to the question and answer portion of the call. On slide two, please read our disclaimers and notes concerning forward-looking statements. Now, without further delay, I will turn the call over to our chairman. Chairman Guo, please go ahead.

Thank you, Angela, and hello, everyone. Welcome to our second quarter 2024 results conference call. We are pleased to announce our continued success in expanding our lead in Taiwan's telecom market in the second quarter. Amidst the three-player market landscape, our revenue share in Taiwan's mobile market continues to steadily grow from 40.4% to 40.5% quarter over quarter. while subscriber share enjoyed a slight increase to 37.7%, maintaining growth in the new market landscape. In addition, for the past six consecutive quarters, our PostalPay mobile app has demonstrated the highest year-over-year growth in the industry, showcasing our growth capabilities. With this contribution, our total revenue in the second quarter reached a new high for the same period since 2018. In addition, our strategy of leveraging content investment to enhance our video performance has been successful. In August, during the first week of our exclusive 2024 Paris Olympic Games broadcast, we were pleased to see our video platform subscriptions surpass 3 million, a milestone that further expanded our lead among all the video platforms in Taiwan. As the Games are more intense, we are We are optimistic about the overall performance of our Olympic Games broadcast. Another area in which we currently invest in is AI development. As Zhonghua Group holds the largest IDC market share in Taiwan, We are well positioned to extend our leading IDC and cloud experiences to construct AI data centers and the GPU cloud. We offer our enterprise customers to leverage the GPU cloud either to build their own sovereign AI or use our GPU as a service In addition, targeting the best opportunities of AI-driven applications, we are developing the CHT AI Factory. This initiative aims to produce various customized AI models, AI-driven operation process, and AI agents for enterprise customers supporting them in their AI transformation. We believe this market has immense potential. Lastly, to strategically enhance our group's value, we are excited to announce that our subsidiary, ZHT Security, The largest managed security service provider in Taiwan will become a publicly traded company this month and will pursue its main board listing next year. This will be followed by another subsidiary, International Integrated Systems Company, a benchmark company in Taiwan focusing on opportunities related to government projects, smart city, fintech, and digital healthcare. We also continue to seek potential M&A targets to create synergy and enhance our agility in driving growth and increasing market value. Now let's move on the business overview on the second quarter of 2024. Let's move on page, slide four, slide five. We are pleased to report another quarter of market share gains in the second quarter of 2024. After the industry's market consolidation, Our revenue share of Taiwan's mobile market continued to stay about 40, hitting 40.5% as of the end of June, further widening our lead against our peers on both year-over-year and quarter-over-quarter basis. Meanwhile, our subscriber share was 37.7%, achieving a stable year-over-year increase. Our excess revenue share over subscriber share was 2.8% due to the exciting revenue share gains, reflecting our healthy growth. As our postpaid subscriber net age continue to outperform peers. Along with growing 5G migration and steady international roaming contribution, our mobile service revenue and the post-pay approval recorded a 3.5% and a 2% year-over-year increase. respectively, maintaining their growth for 39 consecutive months and 13 consecutive quarters. In the second quarter, the average monthly fee uplifted from customers who migrated from 4G to 5G exceeded 39% uptick, maintaining healthy momentum. Let's move on slide six for an update of our fixed broadband business. In the second quarter, the year-over-year growth of our fixed broadband revenue and the subscriber number continued to increase by 4.4% and 0.6%, respectively, expanding growth margin compared with that of the previous quarter. thanks to our successful strategy of encouraging speed upgrade. 300 megabits per second or higher continue to be the mainstream service offerings. Its sign-ups increased by 24% year over year in the second quarter, maintaining double-digit growth and resulting in the 2% increase of six broadband are pulled on an year-over-year basis, which is outstanding. Now, let me send a call over to Ivan Lin for the performance of our customer-centric business groups.