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Segment Information
 12 Months Ended
Dec. 31, 2023
Disclosure of operating segments [abstract]  
Segment Information
42.
SEGMENT INFORMATION

In response to changes in the operating environment and new business challenges, the Company launched its organizational transformation and redesigned the operational decision-making processes and the performance assessment under the new structure. The aforementioned organizational transformation was effective from January 1, 2022. The Company redefined the reportable segments as "Consumer Business", "Enterprise Business", "International Business" and "Others" and restated the corresponding items of segment information for the comparative period. The reportable segments are managed separately because each segment represents a strategic business unit that serves different customers. Segment information is provided to the chief operating decision maker who allocates resources and assesses segment performance. The Company’s measure of segment performance is mainly based on revenues and income before income tax.

Some operating segments have been aggregated into a single operating segment taking into account the following factors: (a) the type or class of customer for the telecommunications products and services are similar; (b) the nature of the telecommunications products and services are similar; and (c) the methods used to provide the services to the customers are similar.

The accounting policies of the operating segments are the same as those described in Note 3.

a.
Segment revenues and operating results

Analysis by reportable segment of revenues and operating results of continuing operations are as follows:

 

 

 

Consumer
Business

 

 

Enterprise
Business

 

 

International
Business

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Year ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From external customers

 

$

129,912

 

 

$

69,258

 

 

$

6,122

 

 

$

5,186

 

 

$

210,478

 

Intersegment revenues

 

 

2,857

 

 

 

1,693

 

 

 

961

 

 

 

340

 

 

 

5,851

 

Segment revenues

 

$

132,769

 

 

$

70,951

 

 

$

7,083

 

 

$

5,526

 

 

 

216,329

 

Intersegment elimination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,851

)

Consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

210,478

 

Segment income before income tax

 

$

27,528

 

 

$

15,094

 

 

$

1,246

 

 

$

2,199

 

 

$

46,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From external customers

 

$

132,063

 

 

$

72,152

 

 

$

7,189

 

 

$

5,335

 

 

$

216,739

 

Intersegment revenues

 

 

2,166

 

 

 

952

 

 

 

864

 

 

 

348

 

 

 

4,330

 

Segment revenues

 

$

134,229

 

 

$

73,104

 

 

$

8,053

 

 

$

5,683

 

 

 

221,069

 

Intersegment elimination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,330

)

Consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

216,739

 

Segment income before income tax

 

$

28,505

 

 

$

15,607

 

 

$

1,694

 

 

$

1,398

 

 

$

47,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From external customers

 

$

137,093

 

 

$

73,005

 

 

$

9,188

 

 

$

3,913

 

 

$

223,199

 

Intersegment revenues

 

 

2,626

 

 

 

1,014

 

 

 

995

 

 

 

406

 

 

 

5,041

 

Segment revenues

 

$

139,719

 

 

$

74,019

 

 

$

10,183

 

 

$

4,319

 

 

 

228,240

 

Intersegment elimination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,041

)

Consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

223,199

 

Segment income before income tax

 

$

28,907

 

 

$

14,363

 

 

$

2,141

 

 

$

1,597

 

 

$

47,008

 

 

b.
Other segment information

Other information reviewed by the chief operating decision maker or regularly provided to the chief operating decision maker was as follows:

For the year ended December 31, 2021

 

 

 

Consumer
Business

 

 

Enterprise
Business

 

 

International
Business

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Share of profits of associates and
   joint ventures accounted for using
   equity method

 

$

(48

)

 

$

11

 

 

$

272

 

 

$

186

 

 

$

421

 

Interest income

 

$

7

 

 

$

16

 

 

$

5

 

 

$

67

 

 

$

95

 

Interest expenses

 

$

131

 

 

$

66

 

 

$

7

 

 

$

14

 

 

$

218

 

Depreciation and amortization

 

$

27,953

 

 

$

9,700

 

 

$

865

 

 

$

698

 

 

$

39,216

 

Impairment loss on right-of-use assets

 

$

5

 

 

$

382

 

 

$

33

 

 

$

—

 

 

$

420

 

Reversal of impairment loss on
   investment properties

 

$

—

 

 

$

—

 

 

$

—

 

 

$

83

 

 

$

83

 

Impairment loss on intangible assets

 

$

29

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

29

 

 

For the year ended December 31, 2022

 

 

 

Consumer
Business

 

 

Enterprise
Business

 

 

International
Business

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Share of profits of associates and
   joint ventures accounted for using
   equity method

 

$

(43

)

 

$

23

 

 

$

315

 

 

$

147

 

 

$

442

 

Interest income

 

$

11

 

 

$

28

 

 

$

8

 

 

$

202

 

 

$

249

 

Interest expenses

 

$

151

 

 

$

83

 

 

$

7

 

 

$

22

 

 

$

263

 

Depreciation and amortization

 

$

28,703

 

 

$

9,714

 

 

$

1,114

 

 

$

739

 

 

$

40,270

 

Reversal of impairment loss on
   investment properties

 

$

—

 

 

$

—

 

 

$

—

 

 

$

107

 

 

$

107

 

Impairment loss on intangible assets

 

$

9

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

9

 

For the year ended December 31, 2023

 

 

 

Consumer
Business

 

 

Enterprise
Business

 

 

International
Business

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Share of profits of associates and
   joint ventures accounted for using
   equity method

 

$

(129

)

 

$

29

 

 

$

283

 

 

$

70

 

 

$

253

 

Interest income

 

$

25

 

 

$

58

 

 

$

36

 

 

$

499

 

 

$

618

 

Interest expenses

 

$

185

 

 

$

94

 

 

$

8

 

 

$

32

 

 

$

319

 

Depreciation and amortization

 

$

28,699

 

 

$

9,721

 

 

$

1,354

 

 

$

737

 

 

$

40,511

 

Impairment loss on investment properties

 

$

—

 

 

$

—

 

 

$

—

 

 

$

336

 

 

$

336

 

Impairment loss on property, plant and equipment

 

$

249

 

 

$

50

 

 

$

—

 

 

$

—

 

 

$

299

 

 

c.
Main products and service revenues

The following is an analysis of the Company’s revenue from its major products and services.

 

 

 

Year Ended December 31

 

 

 

2021

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Consumer Business

 

 

 

 

 

 

 

 

 

Mobile services

 

$

49,043

 

 

$

51,821

 

 

$

55,138

 

Fixed-line services

 

 

42,277

 

 

 

42,766

 

 

 

42,574

 

Sales

 

 

36,145

 

 

 

35,172

 

 

 

36,816

 

Others

 

 

2,447

 

 

 

2,304

 

 

 

2,565

 

 

 

 

129,912

 

 

 

132,063

 

 

 

137,093

 

Enterprise Business

 

 

 

 

 

 

 

 

 

Fixed-line services

 

 

34,712

 

 

 

34,537

 

 

 

33,967

 

ICT business

 

 

22,299

 

 

 

24,248

 

 

 

24,697

 

Mobile services

 

 

8,446

 

 

 

8,942

 

 

 

9,119

 

Others

 

 

3,801

 

 

 

4,425

 

 

 

5,222

 

 

 

 

69,258

 

 

 

72,152

 

 

 

73,005

 

International Business

 

 

 

 

 

 

 

 

 

Fixed-line services

 

 

5,008

 

 

 

5,063

 

 

 

5,389

 

ICT business

 

 

679

 

 

 

1,506

 

 

 

2,841

 

Others

 

 

435

 

 

 

620

 

 

 

958

 

 

 

 

6,122

 

 

 

7,189

 

 

 

9,188

 

Others

 

 

 

 

 

 

 

 

 

Sales

 

 

4,335

 

 

 

4,553

 

 

 

3,034

 

Others

 

 

851

 

 

 

782

 

 

 

879

 

 

 

 

5,186

 

 

 

5,335

 

 

 

3,913

 

 

 

$

210,478

 

 

$

216,739

 

 

$

223,199

 
d.
Geographic information

The users of the Company’s services are mainly from Taiwan, ROC. The revenues it derived outside Taiwan are mainly revenues from international long distance telephone and leased line services. The geographic information for revenues was as follows:

 

 

Year Ended December 31

 

 

 

2021

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Taiwan, ROC

 

$

204,473

 

 

$

209,727

 

 

$

215,265

 

Overseas

 

 

6,005

 

 

 

7,012

 

 

 

7,934

 

 

 

$

210,478

 

 

$

216,739

 

 

$

223,199

 

 

The Company has long-lived assets in U.S., Singapore, Hong Kong, China, Vietnam, Japan, and Thailand for $3,212 million and $3,093 million as of December 31, 2022 and 2023, respectively, in the aforementioned areas, the other long-lived assets are located in Taiwan, ROC.

e.
Major customers

As of December 31, 2021, 2022 and 2023, the Company did not have any single customer whose revenue exceeded 10% of the total revenues.