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OPENLANE, Inc. Reports Third Quarter 2024 Financial Results

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CARMEL, Ind., Nov. 6, 2024 /PRNewswire/ — OPENLANE, Inc. (NYSE: KAR), today reported its third quarter financial results for the period ended September 30, 2024.

“OPENLANE delivered strong third quarter results while advancing a differentiated pipeline of innovation and expanding our investments in people, technology and the customer experience,” said Peter Kelly, CEO of OPENLANE. “I’m particularly pleased with the performance of our marketplace business, which grew volumes, gross profit and adjusted EBITDA with positive contributions from our US, Canadian and European marketplaces.”

“OPENLANE extended its track record of strong financial and operational performance in the third quarter,” said Brad Lakhia, EVP and CFO of OPENLANE. “On a consolidated basis, we delivered revenue of $448 million driven by 6% volume growth, income from continuing operations of $28 million, adjusted EBITDA of $75 million, and year-to-date cash flow from operating activities of $260 million. Our marketplace segment also demonstrated continued resiliency and profitability, with significant adjusted EBITDA growth while increasing our Gross Merchandise Value by 12% to nearly $7 billion.”

Third Quarter 2024 Financial Highlights

Total revenue of $448 million in Q3 2024, representing 8% YoY growthConsolidated income from continuing operations of $28 million, with Marketplace contributing $5 millionConsolidated adjusted EBITDA of $75 million in Q3 2024, representing 10% YoY growth$260 million of cash flow from operating activities on a year-to-date basisMarketplace revenue of $354 million in Q3 2024, representing 12% YoY growthMarketplace adjusted EBITDA of $36 million, representing 34% YoY growthMarketplace volumes increased 6% YoYGross Merchandise Value (GMV) of approximately $7 billion, representing 12% YoY growth

2024 Guidance

The company is updating its annual guidance to the following:

Annual

Guidance

Income from continuing operations (in millions)

$73 – $81

Adjusted EBITDA (in millions)

$285 – $295

Income from continuing operations per share – diluted *

$0.21 – $0.27

Operating adjusted net income from continuing operations per share – diluted

$0.81 – $0.87

* The company uses the two-class method of calculating income from continuing operations per diluted share. Under the two-class method, income from continuing operations is adjusted for dividends and undistributed earnings (losses) to the holders of the Series A Preferred Stock, and the weighted average diluted shares do not assume conversion of the preferred shares to common shares.

Earnings guidance does not contemplate future items such as business development activities, strategic developments (such as restructurings, spin-offs or dispositions of assets or investments), contingent purchase price adjustments, significant expenses related to litigation, tax adjustments and changes in applicable laws and regulations (including significant accounting and tax matters) and intangible impairments. The timing and amounts of these items are highly variable, difficult to predict, and of a potential size that could have a substantial impact on the company’s reported results for any given period. Prospective quantification of these items is generally not practicable. Operating adjusted net income from continuing operations per share excludes amortization expense associated with acquired intangible assets, as well as one-time charges, net of taxes. See reconciliations of the company’s guidance included below.

Share Repurchase Authorization
The board of directors authorized an increase in the size of the company’s share repurchase program by approximately $5 million and an extension of the share repurchase program through December 31, 2025. With the increase, and giving effect to the company’s previous repurchases, approximately $100 million remains available for repurchases under the share repurchase program.

Earnings Conference Call Information
OPENLANE will be hosting an earnings conference call and webcast on Wednesday, November 6, 2024 at 5:00 p.m. ET. The call will be hosted by OPENLANE Chief Executive Officer Peter Kelly and Chief Financial Officer Brad Lakhia. The conference call may be accessed by calling 1-833-634-2155 and asking to join the OPENLANE call. A live webcast will be available at the investor relations section of corporate.openlane.com. Supplemental financial information for OPENLANE’s third quarter 2024 results is available at the investor relations section of corporate.openlane.com.

The archive of the webcast will be available following the call at the investor relations section of corporate.openlane.com for a limited time.

About OPENLANE
OPENLANE, Inc. (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. OPENLANE’s unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the globe. Headquartered in Carmel, Indiana, OPENLANE has employees across the United States, Canada, Europe, Uruguay and the Philippines. For more information and the latest OPENLANE news, visit corporate.openlane.com.

Forward-Looking Statements
Certain statements contained in this release include, and the company may make related oral, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and which are subject to certain risks, trends and uncertainties. In particular, statements made that are not historical facts may be forward-looking statements. Words such as “should,” “may,” “will,” “would,” “anticipate,” “expect,” “project,” “intend,” “contemplate,” “plan,” “believe,” “seek,” “estimate,” “assume,” “can,” “could,” “continue,” “of the opinion,” “confident,” “is set,” “is on track,” “outlook,” “target,” “positioned,” “predict,” “initiative,” “goal,” “opportunity” and similar expressions identify forward-looking statements. Such statements are based on management’s current assumptions, expectations and/or beliefs, are not guarantees of future performance and are subject to substantial risks, uncertainties and changes that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section entitled “Risk Factors” in the company’s Form 10-K for the year ended December 31, 2023 and in the company’s other filings and reports filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release. The company undertakes no obligation to update any forward-looking statements.

OPENLANE, Inc.

Condensed Consolidated Statements of Income

(In millions) (Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

Operating revenues

Auction fees

$      113.2

$      102.1

$      331.8

$      305.3

Service revenue

148.1

153.9

445.4

475.2

Purchased vehicle sales

93.0

60.6

231.4

176.5

Finance-related revenue

94.1

99.7

287.9

296.8

Total operating revenues

448.4

416.3

1,296.5

1,253.8

Operating expenses

Cost of services (exclusive of depreciation and amortization)

252.0

216.0

711.8

662.8

Selling, general and administrative

99.4

107.4

314.1

326.6

Depreciation and amortization

23.8

26.4

72.2

76.2

Goodwill and other intangibles impairment

—

—

—

250.8

Total operating expenses

375.2

349.8

1,098.1

1,316.4

Operating profit (loss)

73.2

66.5

198.4

(62.6)

Interest expense

35.3

39.4

112.4

116.5

Other (income) expense, net

(3.6)

1.7

(2.9)

(12.5)

Loss on extinguishment of debt

—

—

—

1.1

Income (loss) from continuing operations before income taxes

41.5

25.4

88.9

(167.7)

Income taxes

13.1

12.7

31.3

0.7

Income (loss) from continuing operations

28.4

12.7

57.6

(168.4)

Income from discontinued operations, net of income taxes

—

—

—

—

Net income (loss)

$        28.4

$        12.7

$        57.6

$    (168.4)

Net income (loss) per share – basic

Income (loss) from continuing operations

$        0.12

$        0.01

$        0.17

$      (1.84)

Income from discontinued operations

—

—

—

—

Net income (loss) per share – basic

$        0.12

$        0.01

$        0.17

$      (1.84)

Net income (loss) per share – diluted

Income (loss) from continuing operations

$        0.12

$        0.01

$        0.17

$      (1.84)

Income from discontinued operations

—

—

—

—

Net income (loss) per share – diluted

$        0.12

$        0.01

$        0.17

$      (1.84)

 

OPENLANE, Inc.

Condensed Consolidated Balance Sheets

(In millions) (Unaudited)

September 30,

2024

December 31,

2023

Cash and cash equivalents

$                132.1

$                 93.5

Restricted cash

28.5

65.4

Trade receivables, net of allowances

300.0

291.8

Finance receivables, net of allowances

2,192.5

2,282.0

Other current assets

131.7

109.2

Total current assets

2,784.8

2,841.9

Goodwill

1,269.9

1,271.2

Customer relationships, net of accumulated amortization

123.0

136.1

Operating lease right-of-use assets

70.6

75.9

Property and equipment, net of accumulated depreciation

159.6

169.8

Intangible and other assets

217.9

231.4

Total assets

$             4,625.8

$             4,726.3

Current liabilities, excluding obligations collateralized by

     finance receivables and current maturities of debt

$                788.7

$                692.3

Obligations collateralized by finance receivables

1,528.8

1,631.9

Current maturities of debt

267.8

154.6

Total current liabilities

2,585.3

2,478.8

Long-term debt

—

202.4

Operating lease liabilities

64.1

70.4

Other non-current liabilities

36.8

35.2

Temporary equity

612.5

612.5

Stockholders’ equity

1,327.1

1,327.0

Total liabilities, temporary equity and stockholders’ equity

$             4,625.8

$             4,726.3

 

OPENLANE, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions) (Unaudited)

Nine Months Ended

September 30,

2024

2023

Operating activities

Net income (loss)

$         57.6

$     (168.4)

Net income from discontinued operations

—

—

     Adjustments to reconcile net income (loss) to net cash provided by operating activities:

     Depreciation and amortization

72.2

76.2

     Provision for credit losses

42.2

42.0

     Deferred income taxes

(0.1)

(26.8)

     Amortization of debt issuance costs

6.9

6.6

     Stock-based compensation

13.9

13.1

     Contingent consideration adjustment

—

1.3

     Net change in unrealized loss on investment securities

—

0.4

     Investment and note receivable impairment

—

11.0

     Goodwill and other intangibles impairment

—

250.8

     Loss on extinguishment of debt

—

1.1

     Other non-cash, net

(0.3)

0.8

     Changes in operating assets and liabilities, net of acquisitions:

     Trade receivables and other assets

(36.1)

(94.0)

     Accounts payable and accrued expenses

103.8

104.7

     Payments of contingent consideration in excess of acquisition-date fair value

—

(2.6)

Net cash provided by operating activities – continuing operations

260.1

216.2

Net cash used by operating activities – discontinued operations

(1.4)

(0.1)

Investing activities

     Net decrease in finance receivables held for investment

50.4

1.3

     Purchases of property, equipment and computer software

(39.0)

(39.8)

     Investments in securities

(1.9)

(1.0)

 Proceeds from the sale of property and equipment

0.9

0.3

Net cash provided by (used by) investing activities – continuing operations

10.4

(39.2)

Net cash provided by investing activities – discontinued operations

—

7.0

Financing activities

     Net decrease in book overdrafts

(3.6)

(3.5)

     Net repayments of lines of credit

(86.4)

(106.4)

     Net (decrease) increase in obligations collateralized by finance receivables

(93.0)

13.2

     Payments for debt issuance costs/amendments

(14.7)

(5.4)

     Payment for early extinguishment of debt

—

(140.1)

     Payments on finance leases

(0.9)

(1.6)

     Payments of contingent consideration and deferred acquisition costs

—

(12.4)

     Issuance of common stock under stock plans

1.0

2.1

     Tax withholding payments for vested RSUs

(3.4)

(2.5)

     Repurchase and retirement of common stock

(30.0)

(22.2)

     Dividends paid on Series A Preferred Stock

(33.3)

(33.3)

Net cash used by financing activities – continuing operations

(264.3)

(312.1)

Net cash provided by financing activities – discontinued operations

—

—

Net change in cash balances of discontinued operations

—

—

Effect of exchange rate changes on cash

(3.1)

2.6

Net increase (decrease) in cash, cash equivalents and restricted cash

1.7

(125.6)

Cash, cash equivalents and restricted cash at beginning of period

158.9

277.7

Cash, cash equivalents and restricted cash at end of period

$       160.6

$       152.1

Cash paid for interest

$       105.8

$       106.5

Cash paid for taxes, net of refunds – continuing operations

$         34.7

$         28.3

Cash paid for taxes, net of refunds – discontinued operations

$         (0.5)

$            —

OPENLANE, Inc.
Reconciliation of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, operating adjusted net income (loss) and operating adjusted net income (loss) per share as presented herein are supplemental measures of our performance that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). They are not measurements of our financial performance under GAAP and should not be considered as substitutes for net income (loss) or any other performance measures derived in accordance with GAAP. Management believes that these measures provide investors additional meaningful methods to evaluate certain aspects of the company’s results period over period and for the other reasons set forth below.

EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as described in our senior secured credit agreement covenant calculations. Management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA is appropriate to provide additional information to investors about one of the principal measures of performance used by our creditors. In addition, management uses EBITDA and Adjusted EBITDA to evaluate our performance.

Depreciation expense for property and equipment and amortization expense of capitalized internally developed software costs relate to ongoing capital expenditures; however, amortization expense associated with acquired intangible assets, such as customer relationships, software, tradenames and noncompete agreements are not representative of ongoing capital expenditures, but have a continuing effect on our reported results. Non-GAAP financial measures of operating adjusted net income (loss) and operating adjusted net income (loss) per share, in the opinion of the company, provide comparability of the company’s performance to other companies that may not have incurred these types of non-cash expenses or that report a similar measure. In addition, operating adjusted net income (loss) and operating adjusted net income (loss) per share may include adjustments for certain other charges.

EBITDA, Adjusted EBITDA, operating adjusted net income (loss) and operating adjusted net income (loss) per share have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of the results as reported under GAAP. These measures may not be comparable to similarly titled measures reported by other companies.

The following tables reconcile EBITDA and Adjusted EBITDA to income (loss) from continuing operations for the periods presented:

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In millions), (Unaudited)

2024

2023

2024

2023

Income (loss) from continuing operations

$      28.4

$      12.7

$      57.6

$   (168.4)

Add back:

Income taxes

13.1

12.7

31.3

0.7

Interest expense, net of interest income

34.9

38.5

111.3

113.4

Depreciation and amortization

23.8

26.4

72.2

76.2

EBITDA

100.2

90.3

272.4

21.9

Non-cash stock-based compensation

4.1

4.5

14.8

13.8

Loss on extinguishment of debt

—

—

—

1.1

Acquisition related costs

—

0.5

0.5

1.1

Securitization interest

(27.9)

(31.6)

(87.0)

(89.0)

Severance

1.5

1.9

9.2

3.4

Foreign currency (gains)/losses

(3.2)

(1.2)

(0.7)

(0.8)

Goodwill and other intangibles impairment

—

—

—

250.8

Contingent consideration adjustment

—

—

—

1.3

Net change in unrealized (gains) losses on investment securities

—

0.5

—

0.4

Professional fees related to business improvement efforts

—

1.7

1.5

4.5

Impact for newly enacted Canadian DST related to prior years

—

—

10.0

—

Other

(0.2)

0.9

—

1.7

  Total addbacks/(deductions)

(25.7)

(22.8)

(51.7)

188.3

Adjusted EBITDA

$      74.5

$      67.5

$     220.7

$     210.2

 

Three Months Ended September 30, 2024

(Dollars in millions), (Unaudited)

Marketplace

Finance

Consolidated

Income from continuing operations

$             4.8

$           23.6

$           28.4

Add back:

Income taxes

5.0

8.1

13.1

Interest expense, net of interest income

4.2

30.7

34.9

Depreciation and amortization

20.6

3.2

23.8

EBITDA

34.6

65.6

100.2

Non-cash stock-based compensation

3.2

0.9

4.1

Securitization interest

—

(27.9)

(27.9)

Severance

1.4

0.1

1.5

Foreign currency (gains)/losses

(3.1)

(0.1)

(3.2)

Other

(0.3)

0.1

(0.2)

  Total addbacks/(deductions)

1.2

(26.9)

(25.7)

Adjusted EBITDA

$           35.8

$           38.7

$           74.5

 

Three Months Ended September 30, 2023

(Dollars in millions), (Unaudited)

Marketplace

Finance

Consolidated

Income (loss) from continuing operations

$          (19.3)

$           32.0

$           12.7

Add back:

Income taxes

2.0

10.7

12.7

Interest expense, net of interest income

4.3

34.2

38.5

Depreciation and amortization

23.8

2.6

26.4

Intercompany interest

9.6

(9.6)

—

EBITDA

20.4

69.9

90.3

Non-cash stock-based compensation

3.5

1.0

4.5

Acquisition related costs

0.5

—

0.5

Securitization interest

—

(31.6)

(31.6)

Severance

1.7

0.2

1.9

Foreign currency (gains)/losses

(1.2)

—

(1.2)

Net change in unrealized (gains) losses on investment securities

—

0.5

0.5

Professional fees related to business improvement efforts

1.4

0.3

1.7

Other

0.5

0.4

0.9

  Total addbacks/(deductions)

6.4

(29.2)

(22.8)

Adjusted EBITDA

$           26.8

$           40.7

$           67.5

The following table reconciles operating adjusted net income and operating adjusted net income per diluted share to net income (loss) from continuing operations for the periods presented:

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In millions, except per share amounts), (Unaudited)

2024

2023

2024

2023

Net income (loss) from continuing operations (1)

$      28.4

$      12.7

$      57.6

$   (168.4)

   Acquired amortization expense

9.0

11.1

27.4

28.3

   Impact for newly enacted Canadian DST related to prior years

—

—

10.0

—

   Loss on extinguishment of debt

—

—

—

1.1

   Contingent consideration adjustment

—

—

—

1.3

   Goodwill and other intangibles impairment

—

—

—

250.8

   Income taxes (2)

(0.4)

1.9

(2.9)

(32.3)

Operating adjusted net income from continuing operations

$      37.0

$      25.7

$      92.1

$      80.8

Operating adjusted net income from discontinued operations

$          —

$          —

$          —

$          —

Operating adjusted net income

$      37.0

$      25.7

$      92.1

$      80.8

Operating adjusted net income from continuing operations per share – diluted

$      0.26

$      0.18

$      0.64

$      0.56

Operating adjusted net income from discontinued operations per share – diluted

—

—

—

—

Operating adjusted net income per share – diluted

$      0.26

$      0.18

$      0.64

$      0.56

Weighted average diluted shares – including assumed conversion of preferred shares

144.8

145.6

145.0

145.1

(1)

The Series A Preferred Stock dividends and undistributed earnings allocated to participating securities have not been included in the calculation of operating adjusted net income and operating adjusted net income per diluted share.

(2)

For the three and nine months ended September 30, 2024 and 2023, each tax deductible item was booked to the applicable statutory rate. The deferred tax benefits of $52.5 million and $6.5 million associated with the goodwill and tradename impairments in 2023, respectively, resulted in the U.S. being in a net deferred tax asset position. Due to the three-year cumulative loss related to U.S. operations, we currently have a $42.9 million valuation allowance against the U.S. net deferred tax asset.

The following table reconciles EBITDA and Adjusted EBITDA to income from continuing operations for the 2024 guidance presented:

2024 Guidance

(In millions), (Unaudited)

Low

High

Income from continuing operations

$                73

$                81

Add back:

Income taxes

40

45

Interest expense, net of interest income

144

142

Depreciation and amortization

99

97

EBITDA

356

365

  Total addbacks/(deductions), net

(71)

(70)

Adjusted EBITDA

$              285

$              295

The following table reconciles operating adjusted net income from continuing operations and operating adjusted net income from continuing operations per diluted share to income from continuing operations for the 2024 guidance presented:

2024 Guidance

(In millions, except per share amounts), (Unaudited)

Low

High

Income from continuing operations

$                73

$                81

   Total adjustments, net

44

44

Operating adjusted net income from continuing operations

$              117

$              125

Operating adjusted net income from continuing operations per share – diluted

$             0.81

$             0.87

Weighted average diluted shares – including assumed conversion of preferred shares

145

145

 

Analyst Inquiries:

Media Inquiries:

Itunu Orelaru 

Laurie Dippold  

(317) 249-4559 

(317) 468-3900

investor_relations@openlane.com

laurie.dippold@openlane.com 

 

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SOURCE OPENLANE, Inc.

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Verda and Compal Announce Partnership to Accelerate AI Infrastructure Development and Expansion

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Under this collaboration, Compal will supply high-density, liquid-cooled AI server platforms. The platforms are engineered for the workloads defining the next wave of AI: agentic applications that process extensive context and operate at high concurrency, while maintaining the thermal efficiency required for Verda’s sustainable cloud deployments.

The partnership underlines the growing global traction for Verda’s services as well as Compal’s growing role as an infrastructure partner to neocloud operators addressing rising demand for localized AI compute. As enterprises and governments increasingly prioritize data residency, security, and regulatory compliance, neocloud providers like Verda are emerging as key enablers of Sovereign AI strategies.

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Compal brings deep engineering expertise in accelerated computing, advanced thermal design, and system integration, enabling customers to deploy AI infrastructure efficiently while managing power density and operational complexity. To support global AI deployments, Compal continues to expand its manufacturing footprint across Taiwan, Vietnam, and the United States, strengthening supply-chain resilience and aligning production capacity with regional customer requirements.

About Compal
Established in 1984, Compal has grown into a leading global manufacturer of computers and smart devices, partnering with top-tier brands worldwide. Compal was recognized by CommonWealth Magazine as one of Taiwan’s top 7 manufacturers and has consistently ranked among the Forbes Global 2000 companies. Compal has actively expanded into new growth areas, including cloud servers, automotive electronics, smart medical and healthcare, and advanced communication solutions. Headquartered in Taipei, Taiwan, Compal operates design and production facilities in the United States, Taiwan, China, Vietnam, Mexico, Brazil, and Poland. Learn more at https://www.compal.com

About Verda
Verda (formerly DataCrunch) is a European AI cloud provider operating high-density GPU data centers across Europe, delivering on-demand compute for training and inference at scale. Headquartered in Finland, Verda runs infrastructure powered by renewable energy and serves frontier AI labs, research teams and startups building the next generation of models. Learn more at https://verda.com

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SOURCE COMPAL ELECTRONICS,INC.

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The two companies will explore innovative real-world use cases for stablecoin-enabled payments including strengthening digital asset payment security with Mastercard Crypto Credential

JOHANNESBURG and NEW YORK, May 7, 2026 /PRNewswire/ — Mastercard and Yellow Card, a licensed stablecoin infrastructure provider operating primarily across Africa, with additional capabilities in select emerging markets, have announced a strategic partnership to accelerate stablecoin-enabled payment innovation across Eastern Europe, the Middle East, and Africa (EEMEA), with plans for global expansion.

The collaboration will explore breakthrough applications for stablecoin payments across four key verticals: cross-border remittances, B2B settlement, digital loyalty ecosystems, and treasury management. Both companies will work with banks, financial institutions, and regulatory bodies to pilot secure, compliant stablecoin solutions that enhance payment efficiency and reduce costs for businesses and consumers.

The alliance will establish joint working groups to identify high-impact use cases, and create interoperable solutions for banks and financial institutions in the Mastercard network that bridge traditional finance with blockchain-powered payments. Initial focus markets include Ghana, Kenya, Nigeria, South Africa, and the United Arab Emirates.

“Emerging markets represent the greatest opportunity for payment innovation, but success requires deep local expertise and regulatory navigation,” said Chris Maurice, CEO of Yellow Card. “We bring years of experience building compliant stablecoin infrastructure where traditional banking falls short. Mastercard’s global network amplifies these capabilities, allowing us to serve businesses and consumers who need better, more affordable ways to move money across borders,” added Mr. Maurice.

“Stablecoins are an exciting and useful option for some payments, and we look forward to working on additional use cases with Yellow Card, while continuing to leverage Mastercard’s expertise to make stablecoins seamless and secure. Together we look forward to taking digital finance into a new sphere, unlocking new efficiencies in cross-border trade, business-to-business settlements, and digital asset security, to generate a wide-ranging positive impact across the financial ecosystem,” said Mete Güney, Executive Vice President, Market Development, EEMEA, Mastercard.

The partnership builds on Mastercard’s expanding blockchain ecosystem and Yellow Card’s proven track record as one of Africa’s leading licensed stablecoin operators, reinforcing both companies’ commitment to utility-focused digital asset innovation. As stablecoins gain regulatory clarity and institutional adoption across emerging markets, the collaboration positions both partners at the forefront of secure, scalable digital payment solutions that bridge traditional finance with blockchain technology.

About Mastercard
Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we’re building a resilient economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.

www.mastercard.com

About Yellow Card
Yellow Card is one of the largest licensed stablecoin-based infrastructure providers with capabilities in 20 African countries and major emerging markets. From Stablecoin payment infrastructure to fiat settlement rails, wallet services, and custom local Stablecoin issuance, Yellow Card provides the complete à-la-carte infrastructure businesses need to manage Stablecoins, payments, and operations across emerging markets.

https://yellowcard.io/

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Chunghwa Telecom Reports Un-Audited Consolidated Operating Results for the First Quarter of 2026

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May 7, 2026

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TAIPEI, May 7, 2026 /PRNewswire/ — Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (“Chunghwa” or “the Company”) today reported its un-audited operating results for the first quarter of 2026. 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.)

First Quarter 2026 Financial Highlights

Total revenue increased by 7.5% to NT$ 59.99 billion.Consumer Business Group revenue increased by 6.2% to NT$ 36.73 billion.Enterprise Business Group revenue increased by 8.5% to NT$ 18.81 billion.International Business Group revenue increased by 10.7% to NT$ 2.70 billion.Total operating costs and expenses increased by 8.3% to NT$ 46.89 billion.Operating income increased by 4.6% to NT$ 13.10 billion.EBITDA increased by 3.4% to NT$ 23.30 billion.Net income attributable to stockholders of the parent increased by 3.2% to NT$ 10.11 billion.Basic earnings per share (EPS) was NT$1.30.Total revenue, operating income, net income attributable to stockholders of the parent, and EPS all exceeded the high-end target of quarterly guidance.

“We began 2026 with a strong start, delivering financial performance across revenue, operating income, net income attributable to stockholders of the parent and EPS all exceeding our quarterly forecasts. Moreover, revenue reached a first-quarter record, the highest since 2012. These results reflect the continued strength of our business momentum,” said Mr. Chih‑Cheng Chien, Chairman and CEO of Chunghwa Telecom.

“This performance was primarily driven by robust growth in our ICT business, where both recurring revenue and order intake reached new highs. Our ICT revenue grew significantly year over year, supported by strong demand across key areas such as IDC, cloud, and AIoT services, underscoring our success in capturing emerging digital and AI-driven opportunities,” said Mr. Rong-Shy Lin, President of Chunghwa Telecom.

“Our mobile and broadband businesses also continued to deliver stable growth, benefiting from escalating 5G penetration and ongoing improvements in ARPU. Notably, our four value-added services all exceeded their remarkable million-subscriber thresholds, demonstrating our success in delivering value to users. These results reflect not only the resilience of our core operations, but also the effectiveness of our long-term strategy to balance stable cash-generating businesses with high-growth digital initiatives,” Mr. Lin continued.

“We are committed to advancing our 6G transition and AI-powered future. Our phased 5G standalone deployment is strengthening networking founding by targeting services in select verticals and high-traffic commercial districts for the 6G era,” Mr. Lin added. “Meanwhile, by building ‘CHT AI Factory platform’ to integrate our DeepFlow solutions, compute power, AI models and agents, we offer AI-enabled applications to customers and accelerate AI-related revenue growth in 2026. Alongside our technology advancements, ESG remains a core pillar of our long‑term strategy. We are confident in our ability to achieve sustainable growth and create long‑term value for our shareholders.”

Revenue

Chunghwa Telecom’s total revenues for the first quarter of 2026 increased by 7.5% to NT$ 59.99 billion.

Consumer Business Group’s revenue for the first quarter of 2026 increased by 6.2% Year-over-year to NT$ 36.73 billion and income before tax increased by 5.3% year-over-year, supported by steady increases in core telecom business and strong iPhone demands.

Enterprise Business Group’s revenue for the first quarter of 2026 increased 8.5% year-over-year to NT$ 18.81 billion, driven by robust ICT growth, while pre-tax profit declined 2.7% due to fixed voice service decrease. Notably, ICT order intake hit a quarterly record-high, led by network resilience, anti-fraud initiatives, and large projects for national fiscal and public surveillance systems, underpinning future growth momentum.

International Business Group’s revenue for the first quarter of 2026 increased by 10.7% to NT$ 2.70 billion and income before tax increased by 1.6% year-over-year, driven by rising demand for ICT services and stronger roaming revenue. In addition, we expanded investment in the AUG-East submarine cable this quarter, boosting Taiwan to Japan and Taiwan to Singapore bandwidth to 18+ Tbps, supporting international business growth.

Operating Costs and Expenses

Total operating costs and expenses for the first quarter of 2026 increased by 8.3% to NT$ 46.89 billion, mainly due to higher costs associated with growth in sales and ICT project revenue, as well as an increase in personnel expenses.

Operating Income and Net Income

Operating income for the first quarter of 2026 increased by 4.6% to NT$ 13.10 billion. The operating margin was 21.75%, as compared to 22.44% in the same period of 2025. Net income attributable to stockholders of the parent increased by 3.2% to NT$ 10.11 billion. Basic earnings per share was NT$1.30.

Cash Flow and EBITDA

Cash flow from operating activities, as of March 31st, 2026, decreased by 13.6% year over year to NT$ 11.19 billion.

Cash and cash equivalents, as of March 31st, 2026, increased by 20.8% to NT$ 35.10 billion as compared to that as of March 31st, 2025.

EBITDA for the first quarter of 2026 was NT$ 23.30 billion, increased by 3.4% year over year. EBITDA margin was 38.85%, as compared to 40.37% in the same period of 2025.

Business Highlights

Mobile

As of March 31st, 2026, Chunghwa Telecom had 13.34 million mobile subscribers, representing a 1.7% year-over-year increase. In the first quarter, total mobile service revenue increased by 4.4% to NT$ 17.70 billion, while mobile post-paid ARPU excluding IoT SIMs grew 3.6% year over year to NT$ 573.

Fixed Broadband/HiNet

As of March 31st, 2026, the number of broadband subscribers slightly increased by 0.5% to 4.45 million. The number of HiNet broadband subscribers increased by 1.4% to 3.80 million. In the first quarter, total fixed broadband revenue grew 3.0% year over year to NT$ 11.81 billion, while ARPU increased 2.5% to NT$ 818.

Fixed line

As of March 31st, 2026, the number of fixed-line subscribers was 8.57 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

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