CHT — Chunghwa Telecom Co., Ltd.

Summary of Chunghwa Telecom (CHT) Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: TWD 57.92 billion, a 4.2% year-over-year increase, marking the highest third-quarter revenue in 9 years.
• Operating Income: Increased by 6.4% year-over-year.
• Net Income: Rose by 4.8% year-over-year.
• Earnings Per Share (EPS): Increased from TWD 1.16 to TWD 1.22, the highest third-quarter EPS in 8 years.
• EBITDA: Reached TWD 22.11 billion, with an EBITDA margin of 38.17%.
• Year-to-Date Performance: Revenue grew by 3.5%, with net income up 4.2% and EPS at TWD 3.79.

2. Strategic Updates and Business Highlights

• Core Business Growth: Continued robust performance in mobile and fixed broadband services, with mobile revenue market share at 40.8% and fixed broadband revenue up 3.2%.
• 5G Adoption: 5G subscriber market share increased to 38.8%, with a penetration rate of 44.7% among smartphone users.
• ICT Services: Group ICT revenue grew by 14%, with significant contributions from cloud services and cybersecurity, which grew by 19%.
• New Initiatives: Launched InventAI, a subsidiary focused on AI monetization, and completed the public listing of its cybersecurity subsidiary.
• ESG Commitment: Issued TWD 3.5 billion sustainability bond for environmental projects.

3. Forward Guidance and Outlook

• CHT expressed confidence in achieving full-year financial targets, supported by strong performance across all business segments.
• Anticipated continued growth in mobile and ICT services, with expectations for revenue growth to outpace operating expenses.

4. Bad News, Challenges, or Points of Concern

• International Business: While international revenue grew, there are concerns about the competitive landscape and potential risks associated with global market fluctuations.
• Declining Metrics: The International Business Group (IBG) reported a revenue decline of 1.9% and a 19.7% drop in income before tax, primarily due to reduced demand for voice services.
• Cash Flow: Cash flow from operating activities decreased by 8.6%, attributed to timing issues with accounts payable and receivable.

5. Notable Q&A Insights

• Management highlighted the drivers behind international project growth, emphasizing opportunities in the U.S. and Japan, particularly related to AI supply chains and smart city projects.
• The introduction of proprietary solutions, such as cybersecurity services and smart city initiatives, was noted as a significant growth area in Southeast Asia.

Overall, Chunghwa Telecom demonstrated strong financial performance in Q3 2025, driven by core business growth and strategic initiatives in ICT and AI, while also acknowledging challenges in international markets and declining voice service demand.