Chunghwa Telecom ((CHT)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Chunghwa Telecom’s recent earnings call conveyed a robust financial performance, marked by significant growth across multiple business segments, particularly in ICT and 5G. Despite minor declines in some areas, such as international voice revenue, the overall sentiment was positive, showcasing the company’s strategic success and market leadership.
Record Financial Performance
Chunghwa Telecom achieved record financial results for 2024, with operating income, income before tax, and EPS surpassing forecasts. The full-year EPS reached a seven-year high of TWD 4.8, demonstrating strong profitability and financial health.
Strong Revenue Growth
The company reported a seven-year high in revenue for 2024, driven by robust growth across all business sectors. This performance underscores the effectiveness of its strategic initiatives and market positioning.
Subscriber and 5G Growth
Chunghwa Telecom maintained its industry leadership with an overall subscriber share of 37.9% and a 5G subscriber share of 38.8%. This highlights the company’s strong presence in the rapidly growing 5G market.
ICT Business Expansion
The ICT business saw a 24.1% year-over-year revenue increase, with strong performances in IDC, cloud, and cybersecurity services. This expansion is a testament to the company’s efforts in diversifying its offerings and tapping into high-growth areas.
Sustainability and Recognition
Chunghwa Telecom continued its commitment to sustainability, maintaining its position in the Dow Jones Sustainability World Index and receiving high ESG ratings, reflecting its dedication to corporate responsibility.
EPS and Income Growth
In the fourth quarter, EPS reached 1.16, the highest in nine years, with income from operations and net income growing by 11.5% and 9%, respectively. These figures highlight the company’s strong financial management and operational efficiency.
Decline in International Voice Revenue
While the company experienced a 2.3% decline in IBG’s total revenue due to decreased international voice revenue, other business areas more than compensated for this dip.
Flat Performance in Core Enterprise Business
Despite the growth in ICT, the core enterprise business saw flat year-over-year performance due to declines in mobile and fixed voice revenues, indicating challenges in traditional service areas.
Forward-Looking Guidance
Looking ahead, Chunghwa Telecom has set a revenue growth target of 1.2% to 1.6% for 2025, propelled by continued momentum in its core and ICT businesses. The company plans to invest TWD 32.36 billion in capital expenditures, focusing on AI and data centers, marking a substantial increase in non-mobile-related investments.
In summary, Chunghwa Telecom’s earnings call reflected strong financial performance and strategic progress, with notable achievements in ICT and 5G. Despite minor challenges, the company remains on a positive trajectory, supported by its forward-looking investments and growth strategies.
