CHT — Chunghwa Telecom Co., Ltd.

Summary of Chunghwa Telecom (CHT) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 2025 Revenue: TWD 65.65 billion, up 0.5% year-over-year, 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.
• Earnings Per Share (EPS): Rose to TWD 1.20 from TWD 1.16, the highest fourth-quarter EPS in 10 years.
• Full Year 2025 Revenue: TWD 236.11 billion, a 2.7% increase from 2024.
• Full Year EPS: Reached TWD 4.99, up from TWD 4.80.

2. Strategic Updates and Business Highlights

• Mobile Market Leadership: CHT holds a 41% revenue market share and 39.7% subscriber market share in Taiwan, with a 5G subscriber market share of 39.2%.
• Fixed Broadband Performance: ARPU reached TWD 819, a 3.8% year-over-year increase, driven by high-speed upgrade promotions.
• ICT Business Growth: Although Q4 ICT revenue declined by 6% year-over-year, full-year growth was robust, particularly in AIoT, IDC, and international public cloud services.
• Satellite Opportunities: CHT is expanding its satellite services, with partnerships for OneWeb and SES satellites, and plans for Astranis satellite in 2026.
• Awards and Recognition: Received multiple awards for ESG accomplishments and innovation in AI customer service solutions.

3. Forward Guidance and Outlook

• 2026 Revenue Growth: Expected to increase by 2.5% to 3.2% year-over-year, driven by core business momentum and ICT contributions.
• Operating Costs: Anticipated increase of 3.5% to 4% due to talent acquisition and electricity costs.
• Capital Expenditures: Budgeted TWD 31.91 billion for 2026, with a 24% increase in non-mobile CapEx focused on IDC and satellite infrastructure.
• EPS Guidance for 2026: Expected to range between TWD 4.82 and TWD 5.02.

4. Bad News, Challenges, or Points of Concern

• Income from Operations Decline: The decrease due to one-off impairments and high comparative base from prior year’s gains.
• ICT Revenue Fluctuations: Q4 ICT revenue decline raises concerns about sustainability, despite full-year growth.
• Increased Operating Costs: Higher anticipated operating costs may outpace revenue growth, raising concerns about profitability.
• Competitive Pressures: The telecom market remains competitive, particularly in mobile and ICT sectors, which could impact future growth.

5. Notable Q&A Insights

• CapEx Increase: The significant 24% increase in non-mobile CapEx for 2026 is primarily driven by investments in IDC and satellite services.
• Operating Cost Concerns: Higher costs are attributed to the need for skilled talent in emerging sectors and uncertainties regarding electricity policies in Taiwan.
• Request for Transparency: Analysts requested more detailed breakdowns of non-mobile CapEx in future disclosures, highlighting the growing importance of this segment.

This summary encapsulates the key financial metrics, strategic initiatives, and outlook for Chunghwa Telecom, while also addressing potential challenges and insights from the Q&A session.