Chunghwa Telecom Reports Record Growth in Earnings Call

Chunghwa Telecom ((CHT)) has held its Q2 earnings call. Read on for the main highlights of the call.

Chunghwa Telecom’s recent earnings call painted a largely positive picture for the company, underscoring record revenues and robust growth in its ICT and mobile markets. Despite some challenges in its international subsidiaries and IBG segments, the overall sentiment was upbeat, with positive achievements significantly outweighing the negatives.

Record-Breaking Revenue and Growth

Chunghwa Telecom reported a remarkable second-quarter revenue, reaching a 10-year high for the period. This impressive performance was driven by solid growth in its core business and an expanding ICT segment, with ICT revenue setting a new record for any second quarter since 2021.

Southeast Asia Japan Cable 2 Launch

In July, Chunghwa Telecom launched the Southeast Asia Japan Cable 2 as Stage 2, enhancing network performance across the Asia Pacific region. This initiative supports bandwidth-intensive applications like AI and cloud computing, marking a significant step in the company’s strategic expansion.

Mobile Market Leadership

The company strengthened its leadership in the mobile market, with its share in Taiwan rising to 40.7% as of June. This new high, along with a 38.7% share in the 5G market, was driven by robust network quality and an expanding subscriber base.

Enterprise ICT Business Surge

Chunghwa Telecom’s enterprise ICT revenue surged by 27% year-over-year. Core service pillars such as IDC, AIoT, and cloud services delivered strong growth of 71% and 40%, respectively, highlighting the company’s successful strategic initiatives in this sector.

Financial Performance Exceeds Expectations

The company’s financial performance exceeded expectations, with revenue, operating income, net income, and EPS surpassing the upper end of forecasts. Notably, EPS reached its highest level in nine years for the second quarter.

International Subsidiary Revenue Decline

Despite overall positive results, revenue from international subsidiaries declined by 41% year-over-year. This was attributed to project-based fluctuations and one-time revenue recognition from U.S. and Japan subsidiaries in the previous year.

IBG Revenue and Income Decline

The IBG segment faced challenges with year-over-year declines in revenue and income before tax. This was primarily due to reduced demand for international fixed voice and roaming services.

Forward-Looking Guidance

Chunghwa Telecom offered optimistic forward-looking guidance, reporting exceptional financial results for the second quarter of 2025. Revenue surpassed TWD 56 billion, marking a 4.8% year-over-year increase, driven by ICT business expansion and higher sales revenue. The company maintained a strong cash position, with a net debt-to-EBITDA ratio of 0, underscoring its solid financial standing.

In summary, Chunghwa Telecom’s earnings call highlighted a period of significant achievement, with record-breaking revenues and strong growth in key sectors like ICT and mobile markets. While challenges remain in international subsidiaries and IBG segments, the company’s strategic initiatives and financial performance suggest a positive outlook moving forward.