CHT — Chunghwa Telecom Co., Ltd.

Chunghwa Telecom (CHT) Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Q4 2025 Revenue: TWD 65.65 billion, a 0.5% year-over-year increase, marking the highest fourth quarter revenue in nearly a decade.
• Income from Operations: Decreased by 2.2% due to one-off impairment losses related to the 3G network sunset.
• Income Before Tax: Increased by 2.1% year-over-year, driven by investment disposal gains.
• Earnings Per Share (EPS): Increased from TWD 1.16 to TWD 1.20, the highest fourth-quarter EPS in 10 years.
• Full Year 2025 Revenue: TWD 236.11 billion, up 2.7% from 2024.
• Full Year EPS: TWD 4.99, up from TWD 4.80 in the previous year.
• EBITDA: Q4 EBITDA stable at TWD 21.55 billion; full year EBITDA grew 2.6% to TWD 88.77 billion.

2. Strategic Updates and Business Highlights

• Mobile Market Leadership: CHT solidified its position with a mobile revenue market share of 41% and a subscriber market share of 39.7%. 5G subscriber market share reached 39.2%.
• Fixed Broadband Performance: ARPU increased to TWD 819, with significant growth in higher-tier plans.
• ICT Business Growth: Despite a 6% year-over-year decline in Q4 ICT revenue, full-year growth was robust, driven by AIoT, IDC, and cloud services.
• Awards and Recognition: CHT received multiple awards for ESG accomplishments and innovation in AI customer service solutions.
• Renewable Energy Commitment: Secured a 20-year Corporate Power Purchase Agreement for 4.6 billion kilowatt hours of renewable energy.

3. Forward Guidance and Outlook

• 2026 Revenue Growth: Expected to increase by 2.5% to 3.2%, driven by core telecom services and ICT business expansion.
• Operating Costs: Anticipated to rise by 3.5% to 3.7% due to investments in talent and infrastructure.
• EPS Guidance: Projected to be between TWD 4.82 and TWD 5.02.
• Capital Expenditure: Budgeted at TWD 31.91 billion, with a 24% increase in non-mobile CapEx primarily for IDC and satellite services.

4. Bad News, Challenges, or Points of Concern

• Income from Operations Decline: The decrease in operating income due to one-off impairments and high comparative base from previous year’s gains.
• ICT Revenue Fluctuations: Q4 ICT revenue decline attributed to a high comparison base; however, full-year performance remained strong.
• Operating Cost Increase: Projected higher operating costs may outpace revenue growth, raising concerns about profitability.
• Competitive Pressures: The mobile market remains competitive, and the company must navigate the transition and integration of new technologies like AI and satellite services.

5. Notable Q&A Insights

• CapEx Increase: Management explained the 24% increase in non-mobile CapEx is mainly driven by investments in IDC, satellite services, and fixed line maintenance.
• Operating Cost Drivers: Increased costs are attributed to talent acquisition in emerging sectors and uncertainties in electricity policy, alongside depreciation from prior capital investments.
• Request for Transparency: Analysts requested more detailed breakdowns of non-mobile CapEx in future disclosures, highlighting its growing proportion of total CapEx.

This summary encapsulates Chunghwa Telecom's financial performance and strategic direction as discussed in the Q4 2025 earnings call, providing insights into both achievements and challenges ahead.