Chunghwa Telecom's Q1 2025: Contradictions Unraveled in AI Investments, CapEx, and ARPU Contributions

Investment in AI and strategic focus, capital expenditure allocation, strategic focus on M&A and international expansion, investment in submarine cables, and contribution of fixed-broadband and 5G services to ARPU growth are the key contradictions discussed in Chunghwa Telecom's latest 2025Q1 earnings call.



Financial Performance Strength:
- Chunghwa Telecom reported a 4.3% year-over-year increase in net income and EPS for the first quarter of 2025.
- Growth was driven by the company's solid operational performance, leading position in mobile, fixed-line, and ICT businesses, and the stability of mobile ARPU despite global tariff issues.

ICT Business Growth:
- Revenue from the enterprise ICT business increased by 13% year-over-year in the first quarter.
- Growth was driven by project revenue recognition, robust performance across major pillars, and continued growth in recurring revenue.

Fixed Broadband and Mobile Market Leadership:
- Chunghwa Telecom maintained its leading position in Taiwan's mobile market, with a 40.5% revenue share and 39.1% subscriber share.
- The increase in mobile service revenue by 2% year-over-year was driven by subscriber number growth and 5G migration, resulting in a 42% increase in the average monthly fee uplift.

International Subsidiary Performance:
- Revenue from overseas subsidiaries increased by 8.2% year-over-year in the first quarter.
- Growth was mainly due to expanding ICT services provided to high-tech customers in the United States and Southeast Asia markets, driven by Taiwanese investments and AI supply chain relocations.

ESG Performance and Recognitions:
- Chunghwa Telecom received multiple international awards, including Top 5 ranking in the S&P Global ESG score and the highest A ranking from CDP for climate and supplier engagement.
- The recognitions reflect the company's leadership in business and ESG performance, driven by its commitment to sustainability and corporate governance.