Good afternoon, ladies and gentlemen. Welcome to Chunghwa Telecom conference call for the company's second quarter 2023 operating results. During the presentation, all lines will be on listen-only mode. When Griffin is finished, directions for submitting your questions will be given in the question and answer session. For your information, this conference call is now being broadcasted live over the Internet. A test replay will be available within an hour after the conference is finished. Please visit CHTIR website, www.cht.com.tw/ir under the IR section. Now, I would like to turn it over to Miss Angela Tsai, Director of Investor Relations. Thank you. Miss Tsai, please go ahead.
Thank you. I'm Angela Tsai, Assistant Vice President of Chunghwa Telecom's Financial Department. Welcome to our second quarter of 2023 results conference call. Joining me on the call today are Harrison Kuo, our Chairman and CEO, Ivan Lin, our recently appointed President, and Vincent Chen, our Chief Financial Officer. Before I turn the call over to Chairman Harrison Kuo, I would like to briefly introduce our new President, Dr. Ivan Lin. Ivan Lin has a PhD degree in Electronic Engineering from National Taiwan University of Science and Technology. He has served in various leadership positions in the areas of information technology, enterprise business, and telecom laboratory at Chunghwa. Ivan Lin also has a specialized interest and experience in IoT advancements and AI-related developments. I'd like to please read our disclaimers and notes concerning for forward-looking statements. Without further delay, I will turn the call over to Chairman.
Chairman Harrison Kuo, please go ahead.
Thank you, Angela. Hello, everyone. Welcome to our second quarter results conference call. To begin, I would like to extend a warm welcome to our new President, Ivan Lin. We are happy to have his participation on today's call. Before Ivan walks us through our business overview and segment performance, I would first like to share our views and exploration for Chunghwa Telecom on slide four. As I took the office, I declare our mission publicly. That is leverage our core assets, which include customers, customers, tech platforms, infrastructures, and talents to achieve our digital enabling ecosystems, empowering individuals, families, governments, enterprise customers, global clients, and strategic partners to innovate and create value for customers, strategic partners, shareholders, and employees. I reiterate our shared value as it is critical to drive business excellence to fulfill our missions.
The shared value that underpin our corporate culture include integrity, customers trust, innovation, and value creation, as well as commitment and accountability. I believe those are the fundamentals that, that unite the whole company to move forward together. I also envisioned the company becoming an international benchmark enterprise, recognized for sustainable development, as well as a leading brand for digital ecosystems enablers based on the four pillars aforementioned. To guide our success, we build a financial benchmark, which is to become a top technology conglomerate for exceeding the market value of TWD 1 trillion. As our, as our new management recently on board, has AI-related experience, in particular, I am confident in our ability to shape ourselves into a leading brand among digital ecosystem enablers.
Our goal is to push forward the development of an ecosystem-based industry environment as a leading telecom operator. Furthermore, we expect to continue outperforming our peers under such landscape and even extend our leading, given our exclusive technology and a solid service capabilities. We believe the digital transformation trend will continue to prepare the industry for further growth and remain sustainable, and the success will rely more on ecosystem building instead of typical industry competition. We aim to create accretive value for customers and then enhance the overall value for the industry, of course, including ourselves. In July, we were invited to the New York Stock Exchange to celebrate the twentieth anniversary for our NYSE listing. We greatly appreciate the achievement and then look forward to our investors' long term and continued support.
Now, I will turn the call over to Ivan for the business overview.
Thank you, Chairman Harrison Kuo. Hello, everyone. I'm Ivan, honored to be here today and happy to share the details of our second quarter business result. On slide five, please find our mobile business overview. In the second quarter, mobile marketing in Taiwan further consolidated towards healthy structured. We are excited to see our prevailing share in the Taiwan mobile marketing had a modestly increased on a year-over-year basis from 39.2% to 39.9%. Whereas quarter-over-quarter, greatly from 39.7%. Our subscriber share also climbed to 37% from 36.3%, compared with the second quarter of last year.
As a result, our incremental existing revenue share about our subscriber share increased to 2.9%, reflecting our healthy subscriber structure and a better revenue generation compared to our peers. In addition, our post-paid ARPU improved 4% year-over-year increase and continuing growth for nine consecutive quarters. Our mobile service revenue also to lead in the industry with the 6.5% increase, outperforming our peers and maintaining its momentum for 22 consecutive monthly on a year-over-year basis. Owing to the upstream result from the 5G migration and the increase of the post-paid subscriber numbers. For those who migrate from our 4G to the 5G, we observed a average of 44% of lift in their mobile monthly fee, maintaining it, and upward and consecutively quarter-over-quarter.
In addition, our international roaming recovered, and the post-paid revenue increase continued to ramp up in the second quarter. Ideally, over revenue, over the roaming revenue this year is expected to recover to the pandemic level. In terms of the mobile network quality, we are glad to be recognized by OpenSignal to Taiwan based overall and the 5G coverage and, fast and overall, and the 5G experience in June, showcasing our, our performance in the network coverage and quality. Moving on to the slide six, you can find an update to our fixed-term business. We are delighted to see higher service adoption continues to increase quarter-over-quarter, driven by our fixed broadband speed up, and great upgrade the promotional package, and a multi-bundle promotion plans.
Notably, our sign-up and the service over 300 Mbps or higher, maintenance, and its higher penetration rate over the, and the 55% year-over-year, which contribute to 3% and 1% year-over-year increase the overall the fixed broadband revenue output. We expect the fixed broadband output increase for second quarter consecutively. Going forward, we are continuing our strategy of the incentivized separation speed upgrade to enhance over all the output. Now, let's move on to the performance of our customer-centric business group. On slide eight, presents the performance of our CBG groups. In the second quarter, income before tax of the CBG increased by 10.4% year-over-year.
Thanks to the persistent growth of the telecom service, as well as the decrease of the manpower expenses and the depreciation and expenses and expenses. Total revenue of the CBG increased by 3.9% year-over-year, and where mobile service revenue decreased by 6.4% on year, compared by the stable 5G migration and the increase of the prepaid subscribers numbers. In the particularly, international roaming revenue continuing to recover and about to volume contribution on to brand and close global activities to fix live service revenue state, and while fixed broadband revenue maintained its upward trend by increasing 2.9% year-over-year. Only to the first quarter of sailing along with the scale up and the scale upgrade.
The sales revenue increased by 4.8% year-over-year, mainly due to the stabilized iPhone supply and increased terminal sales during the quarter. Slide nine illustrates our consumer business group highlights. In the second quarter, our multiple play package continues to be well received. The subscribers number of the mobile and the fixed broadband and the Wi-Fi services all favored and demonstrate 10.2 on the friend, quarter-over-quarter growth. Wi-Fi subscription numbers increased by 12.5% year-over-year, along with the fixed broadband and MOD promotion packages. In addition, our video subscription continued its uptrend, increasing 6.7% on year. Mainly driven by our popular OTT brand, Hami Video. Its rich content, including its extensive drama collection and professional baseball games.
Despite the broad broadcasting of the major sporting program during this quarter, our IPTV brand, MOD, still experienced a slight increase in both subscribers, subscription and revenue in the second quarter, thanks to its successful upsell on SVOD and channel service brings the world. We are continuing our content strategy to maintain our leading position as the largest video platform in Taiwan. Please turn to slide 10 for overview of our enterprise business group performance. In the second quarter, EBG report 11.9% year-over-year decrease of its income before tax, mainly due to the decline in the tax business, and which have the relative higher margin and a higher basis of the one-time recognition of the large to small energy projects and the internal carbon fee.
Those factors also resulted in a 1.2% year-over-year decrease of the total revenue of the EBG, in spite of the ICT revenue decreased in the second quarter, and mobile service revenue increased, attributable to the 5G upselling and the recovery of international roaming revenue, and as sales revenue increases from our subsidiary as well. Fixed line revenue slightly decreased year-over-year, and then mainly due to the voice decline, also data communication revenue and broadband access revenue continue to grow as expected. Slide 11, last year illustrated our enterprise business highlight. In the second quarter, most of our major applications demonstrated robust growth on a year-over-year basis. 5G private network, in particular, ramped up its revenue by so so the own to the increase in project numbers and retail returns revenue injection....
revenue from big data analysis, cybersecurity, IDC, and cloud also achieved year-over-year growth of 16.7% and 17%, and 14%, and 16%, and 6%, and respectively. total enterprise emerging application revenue decreased by 2.2% on a year-over-year basis, mainly due to one-time IoT revenue recognized last year, relating to smart energy projects, excluding the one-time factor. We continue to see our IoT revenue develop on track. In emerging enterprise application revenue was up by 15.7% year-over-year.
We continue to invest in developing 5G private network, automated, community, and vehicle, and AR/VR , we acquired smart code application in southern Taiwan in the second quarter, leveraging technologies to enhance on many level under seed inspection and to further extend the AR technologies to tourism and in the harbor path, reflecting our leading ICT capabilities and first available revenue contributions. Slide 12 illustrate on our international business performance. In the second quarter, income, income before tax of IBG decreased by 6.6% year-over-year, due to non-operating expenses, such as the foreign currency, the valuation, and loss in the internal company, and the fear in, and excluding the impact. IBG continuing to experience strong growth in the profit generation at a double-digit year-on-year growth.
Total revenue of IBG increased by 22-23.2% on year, mainly driving by the increasing demand for our international private leasing circuit, and growing between the emerging business in through IDC and cloud services on several times. For international business expansion, we are proud to share, like, our sign MOU with the Provincial Electricity Authority , initially managed by PEA in Thailand . For the correlation of the smart city solution, such as the smart code and the smart meters. Now, I would like to turn the call to Vincent for our financial highlights.
Thank you, President Lin. Good afternoon, everyone. I will now walk you through our second quarter financial results. Let's begin with slide 13, income statement highlights. On the second quarter of 2023, we were glad to see our performance continues to exhibit a growth momentum. Total revenues increased by 2% compared to the same quarter last year, as a result of growing mobile and broadband service revenues. Income from operations and net income grew by 2% and 2.9% on year, respectively, and such growth were only attributable to our strong core business performance. EBITDA maintained quarterly and yearly growth. Overall, in the first half of the year, we delivered impressive operating performance as total revenues increased by 3.8% year-over-year, driven by strong growth of our mobile, ICT, and broadband services.
Income from operations and net income grew by 3.2% and 4.6% on year, respectively, mainly due to our robust core businesses and growing ICT business. Notably, EPS increased by 4.6% on year to NT 2.52, which hit a six-year high. EBITDA continued to grow, and EBITDA margin continued to stay at above 40%. Move on to page 15 for balance sheet highlights. Total assets on June 30th of 2023, compared to the end of 2022, grew by 1.3%, mainly due to the increase in our current monetary assets, such as negotiable certificates of deposit. Total liabilities rose by 21%, primarily attributable to the increase in dividends payable, and in debt ratio to increase from 25% - 29%. Furthermore, net debt over EBITDA remains 0.
Altogether, these debt-related figures demonstrate the robustness of our balance sheet.... Page 16 provides the summary of our cash flows. Cash flows from operating activities increased by 3.9% year-over-year, mainly due to the decrease in payments to suppliers and maintenance contractors, which offset the impact of rising interest and tax payments. Regarding our capital spending, the amount of cash outflows was about the same compared to the same period last year. If we break CapEx into mobile and non-mobile components, mobile-related CapEx was lowered by 39.5%, whereas non-mobile related CapEx increased by 28.9%. The latter was primarily attributable to IDC investments. On top of that, free cash flows grew by 6.9% year-over-year.
Taken together, we maintained a robust balance sheet, along with strong operating cash flows, which provide a solid foundation for us to be future ready and allow us to remain committed to driving growth and creating long-term value for our shareholders. On slide 17, the table presents financial results against our financial guidance. In the second quarter of 2023, revenue and all profitability performance measures beat our financial forecasts, with income from operations and net income exceeding financial projections by modest margin. The better-than-expected performance was mainly driven by the performance of mobile and broadband services and ICT business. In the first half of 2023, all performance measures topped our financial forecasts. Notably, all profit-related performance measures beat our guidance by more than 10% as a result of outperforming core and emerging businesses. That concludes the overview of our Q-two financial results.
Let me turn the call over to Chairman Harrison Kuo.
Thank you, Vincent. On slide 18, our awards and ESG recognitions received in the second quarter. To exemplify our unwavering commitment to sustainability, we officially joined the RE100 in May, and are committed to achieving 100% renewable energy usage by 2040. We have also traced the greenhouse gas reduction near-term targets reviewed by SBTi. Our goal is to achieve the reduction of Scope 1 and Scope two greenhouse gas emissions by 50% compared to the baseline year of 2020. Furthermore, we are among the strong leaders in Taiwan to commit to achieving net positive impact on our diversity and the global deforestation by 2030. In addition, our ESG practice and our achievements have been widely recognized globally. We received an upgraded double A rating for MSCI ESG rating, ranked in the top quartile among telecommunications industry peers.
These achievements solidify our position as one of the global leading companies in sustainable development. Thank you for your attention. At this time, I would like to open up our conference call for questions.
Thank you, Chairman Harrison Kuo. Ladies and gentlemen, we will now begin our question and answer session. If you have a question for any of today's speakers, please press star one on your telephone keypad, and you will enter the queue. After you are announced, please ask your question. When you are speaking, please louder or closer to the microphone. If you find that your question has been answered before it is your turn to speak, please press star two to cancel the question. Thank you. Now, please press star one to ask the question. Thank you. If you would like to ask the question, please press star key and number one on your keypad. Thank you. As a reminder, press star one on your keypad if you would like to ask a question. Thank you. Ladies and gentlemen, we are now in question and answer session.
If you would like to ask the question, please press star one on your telephone keypad. Thank you. If you would like to ask a question, please press star key and number 1 on your keypad. Thank you. Ladies and gentlemen, if there are no further questions, I'll turn it back over to Chairman Harrison Kuo. Go ahead, please.
Thank you for your participation. Goodbye.
Thank you, Chairman Harrison Kuo. Thank you for your participation in Chunghwa Telecom's conference. There will be a webcast replay within an hour. Please visit www.cht.com.tw/ir.