Chunghwa Telecom reports Q1 net profit at T$19.97 bln, revenue rises

Chunghwa Telecom reported a net profit of T$19.97 bln for the first half of 2025, with Q2 earnings and revenue rising. The company's revenue in May reached T$18.5 bln, up 2.5% YoY, and in April, revenue was T$19.05 bln, up 6.2% YoY. Chunghwa Telecom also announced board appointments and a cash dividend for 2024.

Chunghwa Telecom Co. Ltd. (NYSE: CHT) reported robust financial results for the second quarter of 2025, with revenue, operating income, and net income exceeding expectations. The company's Q2 earnings call highlighted several key points that underscore its strong performance and strategic initiatives.

The company reported a 4.8% year-over-year (YoY) increase in revenue, reaching a record high of NT$56.73 billion. This growth was driven by a 1.4% increase in consumer business group revenue to NT$34.07 billion and a 12.4% increase in enterprise business group revenue to NT$18.98 billion. International business group revenue, however, decreased by 16.8% to NT$2.20 billion due to fluctuations in project-based revenues and one-time revenue recognition in the previous year [2].

Operating income increased by 5.2% to NT$12.54 billion, while net income grew by 3.5% to NT$19.97 billion, representing a 10-year high for the company. Earnings per share (EPS) reached NT$1.31, the highest in nine years for a second quarter. The company's EBITDA margin improved to 39.8% [2].

Chunghwa Telecom's ICT revenue set a new record for any second quarter since 2021, highlighting strong growth in this segment. The company's leadership in Taiwan's mobile market was further solidified, with a market share of 40.7% and a 5G market share of 38.7%. Mobile service revenue grew by approximately 2% YoY, with a 38% increase in the average monthly fee due to 5G upgrades [1].

The company's enterprise ICT business saw a 27% YoY increase in revenue, driven by IDC, AIoT, and cloud services. Cybersecurity and 5G private networks also saw significant growth. The financial and high-tech sectors contributed to IDC and cloud revenue increases [1].

Chunghwa Telecom's strategic initiatives include the launch of the Southeast Asia Japan Cable 2 and investment in the Asia United Gateway East submarine cable, expected to generate revenue by 2029. The company also obtained an exclusive commercial license for OneWeb LEO services and expanded satellite services to include in-flight WiFi and maritime applications [1].

Free cash flow declined by 6.8% YoY, attributed to increased capital expenditures and investment timing. Total liabilities increased by 20.9%, mainly due to higher dividend payable, impacting the debt ratio. However, the company's cash flow from operating activities decreased by only 0.2% YoY, primarily due to higher settlement of accounts payable [1].

Chunghwa Telecom's Q2 results reflect a company that is well-positioned to capitalize on growth opportunities in the ICT and mobile markets. The company's strategic initiatives and strong financial performance position it well for continued success in the future.

References:

[1] https://ca.investing.com/news/company-news/chunghwa-telecom-co-ltd-cht-q2-2025-earnings-call-highlights-record-revenue-and-strategic--4138475
[2] https://seekingalpha.com/news/4478168-chunghwa-telecom-reports-q2-results