CHT

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4 a.m. ET Vice President of Finance - Angela Tsai President - Rong-Shy Lin Chief Financial Officer - Audrey Hsu Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good afternoon, ladies and gentlemen. Welcome to Chunghwa Telecom Conference Call for the company's second quarter 2026 operating results. [Operator Instructions] For your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within an hour after the conference is finished. Please visit CHT IR website, www.cht.com.tw/ir under the IR Calendar section. And now I would like to turn it over to Ms. Angela Tsai, the Vice President of Finance. Thank you. Ms. Tsai, please go ahead. Angela Tsai: Thank you. I'm Angela Tsai, Vice President of Finance at Chunghwa Telecom. Welcome to Second Quarter 2026 Earnings Results Conference Call. Joining me on the call today are Chunghwa's President, Rong-Shy Lin; and our Chief Financial Officer, Audrey Hsu. During today's call, management will begin by sharing our recent strategic achievements and providing an overview of our second quarter business results. This will be followed by a discussion of our segment performance and financial highlights. We will then open the floor for questions and answers. Please turn to Slide 2 to review our disclaimers and forward-looking statement disclosures. Now without further delay, I will turn the call over to President. President Lin, please go ahead. Rong-Shy Lin: Thank you, Angela, and hello, everyone. Welcome to our second quarter 2026 results conference call. We are excited to announce robust second quarter and first half results with revenue, operating income, net income and EPS all exceeded the high end of our guidance. Notably, total revenue for the second quarter climbed to its highest for any second quarter since 2010, driven by the solid business growth. In addition, our ICT revenue reached its highest second quarter level since 2021. Based on our outperformance in the first half, we are confident in achieving our full year performance targets. In 2026, we continue to invest in AI and see concrete results. In the morning today, we announced the kickoff of the operation of our newly built AI data center in Lunping, Taoyuan, which is expected to add up to 36 megawatts to our total IDC capacity upon full build-out. In July, we were pleased to sign a memorandum of understanding with Taiwan Stock Exchange to provide dedicated colocation capacity within our new AI data center in Taichung, currently under construction, further expanding our market-leading financial colocation ecosystem in Taiwan. Both achievements demonstrate our ability to convert AI infrastructure investments into long-term financial return. Furthermore, leveraging our leading AIDC infrastructure and Sea-Land-Sky network deployment, we are positioning Chunghwa Telecom as the region's unique AAA Hub for the AI era. Powered by our IOWN network and distributed AIDCs, the AAA Hub delivers 3 core values: assurance, providing resilience sea-land-sky connectivity, All-Photonics, enabling ultra-high capacity, low latency and energy-efficient networking through IOWN and AI Hub connecting distributed AI, computing resources across the Asia Pacific to support customers' AI development. In addition, in terms of IOWN, we would like to highlight the IOWN AI Fund, which is the financial instrument we jointly established with global partner in June. The fund aims to not only build the IOWN ecosystem, but also create new business opportunities through technology investments as all investors believe the optical ecosystem is essential to the AI development. Our subsidiaries also continue to seize AI-related opportunities. In the second quarter, Chunghwa Telecom Precision Tech commenced new factory construction to meet growing AI semiconductor testing demand, while Chunghwa Telecom -- Chunghwa leading photonics tech, which stands to benefit from potential opportunities in the AI supply chain. Began trading on the emerging stock exchange in June. Finally, we are delighted to report thast ESG recognitions received in the second quarter, including the CDP's top A-List rating for the supplier engagement and the Best Issuer for Sustainable Finance and the Best Sustainability Bond award from The Asset. And the top 5% of Taiwan Stock Exchange listed companies for the corporate governance. Additionally, we are proud to report that despite continued revenue growth in 2025, we remained on track with our SBTi commitments reducing Scope 1 and Scope 2 greenhouse gas emission by 24.5% from our 2020 baseline and Scope 3 emissions by 10.8% from our 2021 baseline. Now let's move on to our second quarter 2026 results. In the second quarter, we continued our market share leadership in Taiwan's mobile market. Our mobile revenue market share continued to increase, climbing to a record high of 41.2%, while our subscriber market share rose to 39.8% according to our telecom regulator. We would particularly like to highlight the strength of our premium revenue base as our revenue share continued to exceed our subscriber share. Our 5G performance was equally impressive. The 5G market share in Taiwan reached 39.4% maintaining #1 status, while 5G penetration rate among smartphone users increased to nearly 49% as of June. The average monthly fee uplift from 5G migration remained stable at 36% and the postpaid churn rate stayed at a low level of 0.36%, reflecting strong customer loyalty. Thanks to the market-leading subscriber base, growing 5G adoption and the increased roaming revenue on a year-over-year basis, our mobile service revenue grew by 3.2%, outperforming the industry average. Meanwhile, postpaid ARPU increased by 2.4% or TWD [ 13 ]. Notably, we observed our roaming revenue increased 19% year-over-year in the second quarter with inbound roaming revenue growing 42%, benefiting from the robust tourism demand and increasing international travel activities. Let's move on to Slide 6 for our fixed broadband business update. In the second quarter, we were glad to see the number of the subscriber adoption services speeds of 300 megabits per second and above reached 42% of our total fixed broadband subscriber base and the number continued to increase quarter-over-quarter. Among them, subscribers adopting 1 gigabits per second and above increased 61% year-over-year, supporting by the continued of our broadband promotion package. As a result, fixed broadband revenue in the second quarter posted a 3% increase year-over-year, while the ARPU rose year-over-year by TWD 20 to TWD 824 per month. Fixed broadband subscriber also continued to deliver positive growth year-over-year. We will continue to keep the business up and sustainable. Page 7 highlights the performance of our million subscriber consumer services. In the second quarter, signs up of our multiple-play offering, which integrates mobile fixed broadband and Wi-Fi services continued to grow year-over-year for the 18th consecutive quarter, representing a 14% increase year-over-year and driven up over our overall telecom revenue growth. Notably, our Wi-Fi penetration among fixed broadband subscribers reached 57% as a solid basis for the smartphone connectivity. As the 2026 FIFA World Cup kicked off in June and ran through July, it successfully boosted video subscription number to their annual peak in July. At the same time, the introduction of data payment, real-time match data and highlights feature during this FIFA World Cup helped drive total views of tech-supported broadcast across MOD and Hami Video up 24% compared with the previous tournament. As a result, we are glad to see our total OTT revenue in the second quarter increased 20% year-over-year. With the upcoming Asia games in the third quarter, we are optimistic about our video performance through the next quarter. Lastly, our digital services continued to deliver solid growth. The subscriber number of our consumer cybersecurity services maintained over 1 million and delivered 11% year-over-year growth, supported by the rising awareness of digital security. Meanwhile, the number of transacting users of our Digital Carrier Billing or DCB increased by 4.7% year-over-year as customers continue to adopt digital net content, gaming and AI application tool. We continue to see the potential growth in DCB services going forward. Slide 8 illustrates the key developments in our Enterprise ICT business. Through the collective efforts across the group, our ICT business delivered another strong quarter with revenue increasing 32% year-over-year, driven by the continuous expansion of emerging services. Recurring ICT revenue also grew by 9%, maintaining solid momentum across major service lines, particularly IDC, cybersecurity and international public cloud services. Among our core ICT service pillars, Big Data, Cybersecurity and IDC are the key growth driver drivers, posting year-over-year growth of 167%, 34% and 14%, respectively. Big Data revenue surged and Cybersecurity revenue grew strongly, driven by the recognition of large-scale projects for public sector customers, while IDC revenue growth was supported by the installation project for the manufacturing companies. Notably, a key highlight is our second high ICT order intake built on the strong momentum in ICT contract acquisitions during the first quarter, our ICT order intake remained robust in the second quarter with contract value increasing by 30% year-over-year. As a result, the total ICT contract value secured in the first half of the year has already matched full year's total amount achieved in 2025, reflecting a strong project pipeline and reinforcing our confidence in future growth. As of June, our major contract win in the second quarter include large-scale AIDC projects, which are expected to further increase AI-related revenue. Flagship Taipower energy storage project positioning us with us for additional smart grid opportunities and multiple smart surveillance projects from correctional institutions, demonstrating our ability to replicate successful deployment across the sector. In addition, we became the first telecom operator to provide cloud-based encryption sharing services to the financial industry, further reinforcing our differentiated ICT market leadership. Slide 9 highlights the robust performance of our international subsidiaries and the global network performance. In the second quarter, our international subsidiaries delivered impressive performance as aggregate revenue increased 242% year-over-year, particularly due to the large-scale ICT project deliveries across the United States and the Southeast Asia. In the United States, revenue increased more than 11-fold year-over-year, mainly due to the delivery of the large-scale AI supply chain projects in Texas. Meanwhile, revenue in Southeast Asia doubled on year, supported by the ongoing construction project for key customers in Singapore and Vietnam. Encouragingly, with our proven overseas IC integration expertise, we have successfully secured new projects across the United States, Singapore and Thailand, providing strong visibility into future growth. In addition to the strong momentum of overseas ICT business, our network resilience business continued to expand with our Asia Pacific AAA Hub strength. Satellite services revenue increased 14% year-over-year, supported by increasing adoption of satellite connectivity solution across industry. Notably, satellite-related ICT contracts secured in the first half exceeded TWD 200 million, highlighting the growing demand for the diversified communication infrastructure. Another key growth driver from AAA's Hub, strength is International Private Leased Circuit business, whose revenue increased 8% year-over-year, mainly driven by SJC2 and Apricot submarine cable. Looking ahead, given the run-up of the AI-driven data traffic and the growing international connectivity demand resulting from the geopolitical uncertainty, we are well positioned to capture these opportunities, supported by continued investment in submarine cable and satellite projects. Now let's move on to the Page 10 for the financial performance of our 3 business groups. In the second quarter, our core telecom business remained strong. Growth in mobile services, fixed broadband and handset sales drove Consumer Business Group revenue up 4.8% year-over-year, while income before tax increased a solid 3.6%. Beyond our core telecom business, ICT business continued to be a key growth engine. Strong ICT demand, along with the growth in mobile and broadband services lifted the Enterprise Business Group revenue by 3.7% year-over-year, while income before tax increased 2.1%. In the second quarter, the strongest performance came from our International Business Group, which saw growth across every segment, resulting in an approximately 79% increase in the revenue on year and a 31% increase in income before tax on year, respectively. This was propelled by rising demand for ICT integration projects, mainly driven by the relocation of AI supply chain, contribution from the SJC2 and Apricot submarine cables as well as the strong roaming revenue increase. That concludes the business overview for the second quarter. Now I would like to hand the call over to Audrey for the financial update. Wen-Hsin Hsu: Thank you, President. Good afternoon, everyone, and thank you for joining us today. I'm pleased to walk you through our financial performance for the second quarter of 2026. Please turn to Slide 12. In the second quarter, we delivered record high performance for the period. Consolidated revenue reached TWD 61.36 billion, representing an 8.2% increase year-over-year and making our highest Q2 top line since 2010. This strong momentum was driven by 3 primary engines. First, our ICT business achieved its highest Q2 revenue since 2021. This is also propelled by our overseas subsidiaries fulfilling major AI supply chain projects in the U.S. and Southeast Asia, alongside the domestic growth in the Big Data, Cybersecurity and AIDC capacity. Second, product sales grew behind elevated handset ASPs at Chunghwa and strong AI testing contribution from Chunghwa Precision Test. Third, our core telecom service continued their steady expansion, reinforced by ongoing high-tier 5G migration and broadband speed upgrades. Moving to operating profitability. Income from operations rose 5.7% year-over-year. Beyond top line scale, this operating growth reflects high margin flow-through from our core telecom business, supported by 5G adoption and fixed broadband speed upgrades, paired with margin accretive contribution from Chunghwa Precision Test. On the bottom line, EPS expanding to TWD 1.38, up from TWD 1.31 in the prior year period makes our highest second quarter EPS in 10 years. EBITDA also increased 4.1% to TWD 23.52 billion, maintaining a healthy EBITDA margin of 38.32%. Turning to our year-to-year performance shown in the final column, H1 revenue increased 7.8% year-over-year, driven by broad-based growth across ICT, mobile sales and core telecom service. Operating income rose 5.2% to TWD 26.36 billion. Net income grew 3.9% to TWD 20.75 billion, and EPS reached TWD 2.68, up from TWD 2.57 last year. EBITDA expanding 3.8% to TWD 46.82 billion underscoring our recurring cash flow strength. Overall, this balanced result gives us strong confidence in achieving our full year targets. Please turn to Slide 13 for an overview of our balance sheet position. Total asset increased by 3.3% year-to-date, primarily driven by current assets. This was mainly due to growth in cash, time deposits, NCDs and inventories, reflecting higher investment in ongoing ICT projects. On the liability side, total liabilities rose 27.1% compared to year-end 2025, largely driven by the seasonal recognition of dividend payable. As of June 30, 2026, our reported debt ratio stood at 31%. Excluding dividend payable, our adjusted debt ratio improved to 23.72%, down from 25.21% at year-end 2025. More importantly, our interest-bearing debt ratio remains very low at approximately 5%, reflecting minimum financial leverage and prudent balance sheet management. Our core financial health remains robust with a current ratio of 122.3% and a net debt-to-EBITDA ratio standing at 0, underscoring our solid financial position. Moving to Slide 14 for our cash flow summary for the first half of 2026. Net cash provided by operating activities remained healthy over the 6-month period. Working capital was mainly impacted by higher inventory spending for ongoing ICT projects, but this was largely offset by strong cash inflows from contract liabilities and lower payable outflows. On the investment side, first half total CapEx was TWD 9.85 billion, down 14.3% year-over-year. Mobile CapEx declined 9%, reflecting the normalization of investment following the peak phase of 5G network deployment, while nonmobile CapEx decreased 16.3%, primarily due to a higher comparison base last year. We also expect a greater portion of CapEx this year to be deployed in the second half of the year. As a result, our 6-month free cash flow reached TWD 21.89 billion. Our overall cash position improved year-over-year and remains very solid continuing to comfortably support both ongoing business expansions and shareholders' returns. Turning to Slide 15 for our performance relative to guidance. As our President noted at the beginning of our call, we delivered outstanding second quarter results with top line revenue exceeding our expectations. This outperformance was supported by continued ICT momentum, steady core telecom growth and stronger-than-expected product sales. Importantly, revenue growth outpaced operating expense growth, reflecting solid operating leverage and cost discipline. Although project-related costs grew alongside higher ICT revenue recognition, total expenses remained well within target. Consequently, all key profitability metrics, operating income, net income, EPS and EBITDA came in above the high end of our guidance. That concludes my financial overview. Thank you for your time. I will now hand the call back to the operator for Q&A. Operator: [Operator Instructions] Firstly, we'll have Charlie Bai of HSBC for questions. Tianyu Bai: Congratulations on this very strong result. I saw spectacular growth in the international sector. May I know more about the long-term guidance and visibility in this segment, because I know that some could be project based and how do we see the long-term demand? And would you mind breaking down for different regions such as U.S., Southeast Asia, et cetera. Wen-Hsin Hsu: Charlie, thank you very much for your question. I guess the question is you want to look at the outlook for the international sector and long-term guidance and visibility in the segment. As we see the global trend of the AI development, we continue to see growing interest from international customers, particularly in AI infrastructure, international connectivity and data center service in the U.S. and also in Southeast Asia. While our primary market remains Taiwan, we believe that this AI expansion across the Taiwan, U.S. and Southeast Asia is continued in -- aligned with the AI development growth. Is there -- do you need any -- I mean, is there anything that you want me to add on for this issue? Tianyu Bai: Yes. Maybe more color on the project type. Are they mostly AI data center build-out or any kind of more color is really appreciated. Angela Tsai: Okay. Charlie, maybe I can give you some information. As the projects we acquired, we see in the United States market, actually, we -- so far, we see just like Audrey said, we see a lot of opportunities related with the AI supply chain, right? Actually, for the opportunities, actually, I think in this year or next 2 to 3 years, the opportunities is like several billion NT dollars. Operator: Next one, Ranjan Sharma, JPMorgan Singapore. Ranjan Sharma: I have 3 questions. Firstly, on the AIDC, what is the required investment to build out the 36 megawatts of the data center capacity? And what is your projected IRR? The second question is on IOWN. You talk about expanding investments. Can you help us understand what you're doing here? What is the required investment? And what is the impact that you see on your financial outlook going forward? The last question is, if you can remind us on the enterprise ICT side, there seems to be a lot of volatility in the revenues from one quarter to another quarter. If you can help us understand the drivers of that? Wen-Hsin Hsu: Ranjan. Thank you very much for the issue about the AIDC. For the question about AIDC that as we mentioned earlier that our Lunping AIDC and Taichung AIDC are under construction to provide AIDC service for our confirmed customers. While you are interested in this IRR, we don't usually disclose the expected IRR for individual projects. However, just to give you some idea that regarding the Taiwan's IDC market, we would like to highlight our leading position. On a group basis, combining the capacity of Chunghwa Telecom subsidiary, Chief Telecom, our IDC market share in Taiwan reached 78% as of the second quarter, maintaining our position as a market leader. I think this information may give you some idea about our value of the IDC in Taiwan. Also another point is that while we don't disclose the detailed IRR for individual projects, each investment is subject to our very disciplined capital allocation framework and investment evaluation. We only proceed with projects that meet our financial and strategic return requirement and can help create long-term shareholder value, then we will consult the project. I hope this is helpful for your question about the first question. Ranjan Sharma: Yes. Can you help with like the amount of investment required to build out 36 megawatts of capacity? Angela Tsai: Okay. Ranjan, are you asking the total capacity of IDC and AIDC right? Ranjan Sharma: Yes, the amount of investment required to build that capacity. Angela Tsai: Investment required for what? Ranjan Sharma: To build the capacity, how much capital do you need to deploy to build the capacity? Angela Tsai: Well, actually, for the Lunping AIDC, we say that when it's build out -- we completed the build-out, then the maximum it could provide is the 36 megawatts. But the AIDC is building by phases. Our investments injected is by phases, yes. But we don't disclose the total capital we invest for the Lunping AIDC, yes. In terms of your last question is about the ICT volatility, the ICT revenue, right? Actually, we foresee that for this year, the ICT revenue, the volatility is the pattern is similar to the previous year. We are quite confident to beat our ICT revenue target for this year, yes. Ranjan Sharma: Okay. The last question on IOWN. Angela Tsai: Sorry, could you repeat the question about IOWN? Ranjan Sharma: Yes. Can you help us understand the investments that you're making in IOWN? How much capital that you're deploying there? And how does that impact your business outlook going forward? Angela Tsai: If you are asking about the IOWN AI fund, right? Is there a question you want to ask? Ranjan Sharma: Yes. And also like how -- what is the revenue opportunity from IOWN? Angela Tsai: Actually, we see that IOWN ecosystem is quite important in the AI era because in our plan, we want to connect our AIDC, the distributed AIDC at home and abroad through the IOWN network -- connected by IOWN network. But this is still in the early stage that we invest in building up this kind of network. In terms of revenue, I think it still takes time to gain the real revenue from IOWN network, yes. Wen-Hsin Hsu: To add on some -- I think nowadays in the semiconductor, the All-Photonics issue is becoming a key driver for the next generation of the data center. I think IOWN is quite important for the next-generation data center. We believe that this kind of -- at this moment, this can help us to build our competitive advantage given that, as I just mentioned that AIDC, we are the major player. We take almost reaching 80% of the market share in Taiwan, and we believe that -- and given that so many customers in Taiwan have the position across the Asia Pacific. We view IOWN as both the technology and business initiative. While this ecosystem development takes time, we believe it provides an important foundation for future AI-related service and next-generation network capabilities. Operator: [Operator Instructions] If there are no further questions, I will turn it back over to President Lin. Thank you. Rong-Shy Lin: Okay. Thank you very much for your participation. See you. Bye-bye. Operator: Thank you, President Lin. Ladies and gentlemen, we thank you for your participation in Chunghwa Telecom's Conference. There will be a webcast replay within an hour. Please visit www.cht.com.tw/ir under the IR Calendar section. You may now disconnect. Thank you again. Goodbye. 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This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Chunghwa Telecom Co Ltd (NYSE:CHT) delivered robust Q2 2026 results with revenue, operating income, net income, and EPS all exceeding the high end of guidance, with total revenue reaching its highest Q2 level since 2010. The company's ICT business showed strong momentum, with revenue increasing 32% year-over-year and order intake growing 30%, with H1 contract value already matching the full-year 2025 total. International business group performed exceptionally well, with revenue up 9% and income before tax up 31% year-over-year, driven by large-scale AI supply chain projects in the US and Southeast Asia. Mobile service revenue grew 3.2% year-over-year, with post-paid ARPU increasing 2.4% and 5G market share maintaining the number one position at 39.4%, reflecting strong customer loyalty and premium revenue base. The company is strategically positioned for AI growth with the launch of a new AI data center in Taoyuan (up to 36MW capacity) and a leading IDC market share of 78% in Taiwan, alongside the establishment of the ION AI Fund to build the optical ecosystem. The company does not disclose the total capital investment required for its AIDC build-out or projected IRRs, leaving investors without clear visibility on the return profile of these significant projects. The ION network and AI Fund are still in early stages, with management acknowledging that it will take time to generate real revenue from these initiatives, creating uncertainty about near-term financial impact. ICT revenue shows volatility from quarter to quarter due to the project-based nature of the business, which could lead to unpredictable earnings fluctuations. Total liabilities rose 27.1% compared to year-end 2025, driven by seasonal dividend payable recognition, although the adjusted debt ratio improved when excluding this factor. Working capital was negatively impacted by higher inventory spending for ongoing ICT projects, which could pressure cash flow if project timelines are delayed or costs overrun. Warning! GuruFocus has detected 3 Warning Sign with ADRNY. Is CHT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the long-term guidance and visibility for the international segment, particularly breaking down demand by region (U.S., Southeast Asia) and project type?A: (CFO Audrey Hsu) We continue to see growing interest from international customers, particularly in AI infrastructure, international connectivity, and data center services in the U.S. and Southeast Asia. While our primary market remains Taiwan, we believe the AI expansion across Taiwan, the U.S., and Southeast Asia aligns with AI development growth. (VP of Finance Angela Tai) In the U.S. market, we see significant opportunities related to the AI supply chain, with potential opportunities estimated at several billion NT dollars over the next two to three years. Q: What is the required investment to build out the 36 megawatts of AI data center capacity, and what are your projected IRRs?A: (CFO Audrey Hsu) We do not disclose the expected IRR for individual projects. However, on a group basis, our IDC market share in Taiwan reached 78% as of the second quarter, maintaining our position as the market leader. Each investment is subject to disciplined capital allocation and investment evaluation, and we only proceed with projects that meet our financial and strategic return requirements. (VP of Finance Angela Tai) The AIDC is built in phases, so our investments are injected by phases, and we do not disclose the total capital invested for the AIDC. Q: Can you help us understand the investments you're making in ION (Integrated Optical Network) and how this impacts your business outlook going forward?A: (VP of Finance Angela Tai) The ION ecosystem is quite important in the AI era. We plan to connect our distributed AIDCs at home and abroad through the ION network. However, this is still in the early stage, and it will take time to gain real revenue from the ION network. (CFO Audrey Hsu) All photonics is becoming a key driver for the next generation of data centers. ION is important for building our competitive advantage, given our nearly 80% market share in Taiwan's IDC market. We view ION as both a technology and business initiative that provides an important foundation for future AI-related services and next-generation network capabilities. Q: Can you help us understand the drivers of the volatility in enterprise ICT revenues from one quarter to another?A: (VP of Finance Angela Tai) The volatility pattern for ICT revenue this year is similar to the previous year. We are quite confident in beating our ICT revenue targets for this year. Q: What drove the spectacular growth in the international sector, and how sustainable is this growth given that some of it could be project-based?A: (CFO Audrey Hsu) The growth is driven by the global trend of AI development, with growing interest from international customers in AI infrastructure, international connectivity, and data center services. We see this AI expansion across Taiwan, the U.S., and Southeast Asia as aligned with continued AI development growth. (VP of Finance Angela Tai) In the U.S., we see opportunities related to the AI supply chain, with potential opportunities estimated at several billion NT dollars over the next two to three years. Q: What is the total investment required to build out the 36 megawatts of AI data center capacity?A: (VP of Finance Angela Tai) The AIDC is built in phases, and when fully built out, it could provide a maximum of 36 megawatts. Our investments are injected by phases, and we do not disclose the total capital invested for the AIDC. Q: What is the revenue opportunity from ION, and how much capital are you deploying there?A: (VP of Finance Angela Tai) The ION ecosystem is still in the early stage of development. We are investing in building up this network, but it will take time to gain real revenue from the ION network. (CFO Audrey Hsu) ION is important for the next generation of data centers and helps build our competitive advantage. Given our leading position in Taiwan's IDC market and our customers' positions across the Asia Pacific, we view ION as both a technology and business initiative that provides an important foundation for future AI-related services. Q: Can you provide more details on the AI data center projects and the expected returns?A: (CFO Audrey Hsu) We don't usually disclose the expected IRR for individual projects. However, our IDC market share in Taiwan reached 78% as of the second quarter, maintaining our position as the market leader. Each investment is subject to disciplined capital allocation and investment evaluation, and we only proceed with projects that meet our financial and strategic return requirements. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

TAIPEI, Aug. 5, 2026 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its un-audited operating results for the second quarter of 2026. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs") on a consolidated basis. (Comparisons throughout the press release, unless otherwise stated, are made with regard to the prior year period.) Second Quarter 2026 Financial Highlights Total revenue increased by 8.2% to NT$ 61.36 billion. Consumer Business Group revenue increased by 4.8% to NT$ 35.73 billion. Enterprise Business Group revenue increased by 3.7% to NT$ 19.68 billion. International Business Group revenue increased by 78.9% to NT$ 3.93 billion. Total operating costs and expenses increased by 8.9% to NT$ 48.10 billion. Operating income increased by 5.7% to NT$ 13.26 billion. EBITDA increased by 4.1% to NT$ 23.52 billion. Net income attributable to stockholders of the parent increased by 4.7% to NT$ 10.64 billion. Basic earnings per share (EPS) was NT$1.38. Total revenue, operating income, net income attributable to stockholders of the parent, and EPS all exceeded the high-end target of quarterly guidance. "We delivered a solid second quarter and first half, with revenue, operating income, net income attributable to stockholders of the parent, and EPS all exceeding the high ends of our guidance for both periods. Total revenue reached a second-quarter record since 2010, and EPS reached its highest second-quarter level in a decade. These results are clear testaments to the durability of our growth strategy and the discipline behind our execution, and we remain confident in achieving our full-year targets," said Mr. Chih-Cheng Chien, Chairman and CEO of Chunghwa Telecom. "Our core telecom business remained the cornerstone of our performance, generating the largest share of both revenue and profit in the quarter. Mobile revenue market share reached a new high to 41.2%, and our 5G penetration among smartphone users increased to 48.8%. As a result, mobile service revenue increased by 3.2%, above industry average, supported by continued 5G adoption and stronger roaming contributions. Fixed broadband continued to benefit from rising demand for higher-speed services, with 1 Gbps-and-above subscribers growing 61% year over year and driving further ARPU improvement. Our consumer digital services also continued to grow, with the FIFA World Cup providing a meaningful boost to this segment. As a result, video subscriptions reached an annual peak and OTT revenue grew 20% year over year," said Mr. Rong-Shy Lin, President of Chunghwa Telecom. "Our Enterprise Business Group was another major growth driver, with ICT revenue up 32% year over year on solid revenue contribution from big data, cybersecurity, and IDC services. Encouragingly, our first-half ICT order intake already matched the full-year total achieved in 2025, reflecting a robust project pipeline. Our International Business Group likewise delivered an excellent quarter, with revenue up 79% year over year, led by large-scale ICT project deliveries in the United States and Southeast Asia, alongside continued expansion of our satellite and submarine cable networks," Mr. Lin continued. "Looking ahead, we are advancing our long-term AI strategy, including the launch announcement of our Lunping campus AIDC earlier today and the signing of an MOU with the Taiwan Stock Exchange in July to provide dedicated AIDC capacity in Taichung. We will also continue to advance our position as a regional hub for connectivity, computing, and AI, with disciplined execution of our IOWN investments. We remain committed to our ESG goals and to delivering sustainable shareholder returns," Mr. Lin added. Revenue Chunghwa Telecom's total revenues for the second quarter of 2026 increased by 8.2% to NT$ 61.36 billion. Consumer Business Group's revenue for the second quarter of 2026 increased by 4.8% year-over-year to NT$ 35.73 billion and income before tax increased by 3.6% year-over-year, supported by steady increases in core telecom business and strong iPhone demands. Enterprise Business Group's revenue increased by 3.7% year-over-year to NT$19.68 billion in the second quarter, while income before tax grew by 2.1%, driven by strong ICT demand as well as growth in enterprise mobile projects. International Business Group's revenue for the second quarter of 2026 increased by 78.9% to NT$ 3.93 billion and income before tax increased by 30.8% year-over-year, primarily due to the large-scale ICT project deliveries across the U.S. and Southeast Asia Operating Costs and Expenses Total operating costs and expenses for the second quarter of 2026 increased by 8.9% to NT$ 48.10 billion, mainly due to higher costs associated with growth in ICT project revenue and sales, as well as an increase in personnel expenses. Operating Income and Net Income Operating income for the second quarter of 2026 increased by 5.7% to NT$ 13.26 billion. The operating margin was 21.51%, as compared to 22.11% in the same period of 2025. Net income attributable to stockholders of the parent increased by 4.7% to NT$ 10.64 billion. Basic earnings per share was NT$1.38. Cash Flow and EBITDA Cash flow from operating activities, as of June 30th, 2026, increased by 8.4% year over year to NT$ 31.74 billion. Cash and cash equivalents, as of June 30th, 2026, increased by 20.0% to NT$ 42.03 billion as compared to that as of June 30th, 2025. EBITDA for the second quarter of 2026 was NT$ 23.52 billion, increased by 4.1% year over year. EBITDA margin was 38.32%, as compared to 39.80% in the same period of 2025. Business Highlights Mobile As of June 30th, 2026, Chunghwa Telecom had 13.43 million mobile subscribers, representing a 2.3% year-over-year increase. In the second quarter, total mobile service revenue increased by 3.2% to NT$ 17.60 billion, while mobile post-paid ARPU excluding IoT SIMs grew 2.4% year over year to NT$ 569. Fixed Broadband/HiNet As of June 30th, 2026, the number of broadband subscribers slightly increased by 0.6% to 4.47 million. The number of HiNet broadband subscribers increased by 1.5% to 3.82 million. In the second quarter, total fixed broadband revenue grew 3.3% year over year to NT$ 11.97 billion, while ARPU increased 2.4% to NT$ 824. Fixed line As of June 30th, 2026, the number of fixed-line subscribers was 8.50 million. Financial Statements Financial statements and additional operational data can be found on the Company's website at http://www.cht.com.tw/en/home/cht/investors/financials/quarterly-earnings NOTE CONCERNING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about Chunghwa's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwa's filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this press release reflect the current belief of Chunghwa as of the date of this press release and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law. This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. NON-GAAP FINANCIAL MEASURES To supplement the Company's consolidated financial statements presented in accordance with International Financial Reporting Standards pursuant to the requirements of the Financial Supervisory Commission, or T-IFRSs, Chunghwa Telecom also provides EBITDA, which is a "non-GAAP financial measure". EBITDA is defined as consolidated net income (loss) excluding (i) depreciation and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other financing costs and derivative transactions), (iii) other income, net, (iv) income tax, (v) (income) loss from discontinued operations. In managing the Company's business, Chunghwa Telecom relies on EBITDA as a means of assessing its operating performance because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax (iv) other expenses or income not related to the operation of the business. CAUTIONS ON USE OF NON-GAAP FINANCIAL MEASURES In addition to the consolidated financial results prepared under T-IFRSs, Chunghwa Telecom also provide non-GAAP financial measures, including "EBITDA". The Company believes that the non-GAAP financial measures provide investors with another method for assessing its operating results in a manner that is focused on the performance of its ongoing operations. Chunghwa Telecom's management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company's operating results, as well as when forecasting and analyzing future periods. However, the Company recognizes that: these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Company's T-IFRSs financial measures; these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Company's T-IFRSs financial measures; these non-GAAP financial measures should not be considered to be superior to the Company's T-IFRSs financial measures; and these non-GAAP financial measures were not prepared in accordance with T-IFRSs and investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principle. Further, these non-GAAP financial measures may be unique to Chunghwa Telecom, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company's results to the results of other companies. Readers are cautioned not to view non-GAAP results as a substitute for results under T-IFRSs, or as being comparable to results reported or forecasted by other companies. About Chunghwa Telecom Chunghwa Telecom (TAIEX 2412, NYSE: CHT) ("Chunghwa" or "the Company") is Taiwan's largest integrated telecommunications services company that provides fixed-line, mobile, broadband, and internet services. The Company also provides information and communication technology services to corporate customers with its big data, information security, cloud computing and IDC capabilities, and is expanding its business into innovative technology services such as IoT, AI, etc. Chunghwa has been actively and continuously implemented environmental, social and governance (ESG) initiatives with the goal to achieve sustainability and has won numerous international and domestic awards and recognitions for its ESG commitments and best practices. For more information, please visit our website at www.cht.com.tw Contact: Angela Tsai Phone: +886 2 2344 5488 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/chunghwa-telecom-reports-un-audited-consolidated-operating-results-for-the-second-quarter-of-2026-302843449.html

Interested in Chunghwa Telecom Co., Ltd.? Here are five stocks we like better. Chunghwa Telecom exceeded its Q2 guidance: Revenue rose 8.2% year over year to TWD 61.36 billion, while EPS increased to TWD 1.38, the company’s strongest second-quarter EPS in a decade. ICT and AI infrastructure drove growth: ICT revenue climbed 32%, with big data, cybersecurity and IDC services posting strong gains. The company opened an AI data center in Taoyuan and said first-half ICT contract value had already matched all of 2025. Core telecom and international operations remained resilient: Mobile service revenue, roaming, broadband and multi-play services all grew, while international revenue surged 242% on U.S. and Southeast Asian project deliveries. Chunghwa maintained a strong balance sheet, with zero net debt to EBITDA and TWD 21.89 billion in first-half free cash flow. Chunghwa Telecom (NYSE:CHT) reported second-quarter 2026 results that exceeded the high end of its guidance, with management citing growth in information and communications technology services, core telecom operations, handset sales and overseas projects. President Lung Shih-Lin said second-quarter revenue, operating income, net income and earnings per share all surpassed the company’s expectations. Consolidated revenue rose 8.2% year over year to TWD 61.36 billion, the company’s highest second-quarter revenue since 2010. Earnings per share increased to TWD 1.38 from TWD 1.31 a year earlier, representing the highest second-quarter EPS in a decade. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control For the first half, revenue increased 7.8% year over year, operating income rose 5.2% to TWD 26.36 billion, and net income grew 3.9% to TWD 20.75 billion. First-half EPS reached TWD 2.68, compared with TWD 2.57 in the prior-year period. Management highlighted its continued investment in artificial intelligence infrastructure. On the day of the call, Chunghwa Telecom announced the start of operations at its newly built AI data center in Lunping, Taoyuan. The facility is expected to add as much as 36 megawatts of capacity once fully built out. → 3 Drone Stocks That Should Soar After the Summer Slump The company also signed a memorandum of understanding with the Taiwan Stock Exchange in July to provide dedicated colocation capacity at an AI data center under construction in Taichung. President Lin said the projects demonstrate the company’s ability to translate AI infrastructure investment into long-term financial returns. Chunghwa Telecom is positioning itself as a regional “Three A’s” hub, combining resilient sea-land-sky connectivity, all-photonics networking through its IOWN initiative, and an AI hub linking distributed computing resources across Asia-Pacific. The company said it jointly established the IOWN AI Fund with global partners in June to help build the IOWN ecosystem and pursue technology-investment opportunities. → Why Rare Earth Processing Could Be the Real 2027 Opportunity ICT revenue climbed 32% year over year in the second quarter, while recurring ICT revenue increased 9%. Revenue from big data services rose 167%, cybersecurity revenue increased 34%, and IDC revenue grew 14%. Management attributed big data and cybersecurity gains to recognition of larger public-sector projects, while IDC growth was supported by installation projects for manufacturing customers. Second-quarter ICT order intake, measured by contract value, increased 30% year over year. The company said total ICT contract value secured in the first half had already matched the full-year total achieved in 2025. Major second-quarter wins included large-scale AI data center projects. The company secured a Taipower energy-storage project and several smart-surveillance projects for correctional institutions. Chunghwa Telecom said it became the first telecom operator to offer cloud-based encryption-sharing services to Taiwan’s financial industry. In Taiwan’s mobile market, Chunghwa Telecom said its mobile revenue market share reached a record 41.2%, while subscriber market share was 39.8%, according to the telecom regulator. Its 5G market share stood at 39.4%, and 5G penetration among smartphone users approached 49% at the end of June. Mobile service revenue increased 3.2% year over year, ahead of the industry average, while postpaid average revenue per user increased TWD 13, or 2.4%. The average monthly fee uplift from customers migrating to 5G remained 36%, and postpaid churn was 0.36%. Roaming revenue rose 19% year over year, including a 42% increase in inbound roaming revenue, which management attributed to tourism demand and international travel activity. Fixed-broadband revenue increased 3% year over year, and monthly ARPU rose TWD 20 to TWD 824. Subscribers using speeds of 300 megabits per second or more accounted for 42% of the fixed-broadband base, while subscribers using 1 gigabit-per-second service or higher increased 61% from a year earlier. Consumer multi-play sign-ups, which combine mobile, fixed broadband and Wi-Fi services, rose 14% year over year and extended their growth streak to 18 consecutive quarters. Total over-the-top revenue increased 20%, while consumer cybersecurity subscribers remained above 1 million and grew 11% year over year. International subsidiaries posted aggregate revenue growth of 242% year over year, driven by large ICT project deliveries in the U.S. and Southeast Asia. U.S. revenue increased more than elevenfold, primarily because of AI supply-chain projects in Texas, while Southeast Asia revenue doubled on construction projects in Singapore and Vietnam. The International Business Group’s revenue rose about 79% year over year, and its income before tax increased 31%. Management also cited contributions from the SJC2 and APRICOT submarine cables and stronger roaming revenue. Satellite-services revenue increased 14% year over year, and satellite-related ICT contracts secured in the first half exceeded TWD 200 million. International private leased-circuit revenue rose 8%, supported by the SJC2 and APRICOT cables. During the question-and-answer session, management said it sees several billion Taiwan dollars of AI supply-chain opportunities in the U.S. over this year and the next two to three years. It added that IOWN remains at an early investment stage and that meaningful revenue from the initiative will take time to develop. Second-quarter EBITDA increased 4.1% to TWD 23.52 billion, with an EBITDA margin of 38.32%. First-half EBITDA rose 3.8% to TWD 46.82 billion. First-half capital expenditures totaled TWD 9.85 billion, down 14.3% year over year, as mobile investment normalized after a peak phase of 5G deployment. The company expects a greater portion of annual capital spending to occur in the second half. Six-month free cash flow totaled TWD 21.89 billion. As of June 30, Chunghwa Telecom reported a debt ratio of 31%. Excluding dividends payable, the adjusted debt ratio was 23.72%, down from 25.21% at year-end 2025. Its interest-bearing debt ratio was approximately 5%, while net debt to EBITDA stood at zero. Management said the first-half performance gives it confidence in meeting its full-year targets, including its ICT revenue objectives. Chunghwa Telecom Co, Ltd. is the largest integrated telecommunications service provider in Taiwan, serving both consumer and enterprise customers across the island and through international telecommunications links. The company offers a full range of voice, data and multimedia services and operates as the incumbent fixed-line operator while also competing in mobile, broadband and enterprise markets. Its network footprint and traffic interchange capabilities support domestic communications and cross-border connectivity for carriers and multinational businesses. Chunghwa Telecom's product and service portfolio includes fixed-line telephony, mobile services (including 4G and 5G wireless access), broadband internet (DSL and fiber-to-the-home), and IPTV. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Chunghwa Telecom Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Chunghwa Telecom Co., Ltd.? Here are five stocks we like better. Chunghwa Telecom delivered a record first quarter, with revenue up 7.5% year over year to TWD 59.99 billion and all key profitability metrics beating guidance. EPS rose to TWD 1.30, the company’s highest first-quarter EPS in 10 years. Core telecom businesses and consumer services remained strong, as mobile market share hit a record 41.1% and fixed broadband revenue grew 3%. Multiple-play subscriptions topped 1 million, while video subscribers surpassed 3 million amid sports-related demand. ICT and AI-related businesses were major growth drivers, with ICT revenue up 25% and order intake reaching a new high of TWD 20 billion. Management said it will keep investing in AI, network resilience, IDC capacity and 5G standalone infrastructure as it prepares for longer-term 6G opportunities. Chunghwa Telecom (NYSE:CHT) reported a record first-quarter revenue performance for 2026 and said all key financial metrics exceeded its quarterly guidance, as growth in ICT services, mobile, fixed broadband and handset sales supported results. President Rong-Shy Lin said the company’s first-quarter revenue reached its highest level for any first quarter since 2012, driven mainly by “outstanding ICT revenue growth,” alongside continued strength in mobile and fixed-line operations. Chunghwa also announced that its 2025 cash dividend per share is set at TWD 5.2, representing a payout ratio of 104.2%. → Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking “This represents a very positive start to the year,” Lin said, adding that the company plans to further deploy resources toward “pre-6G and AI-related opportunity” in 2026. Chief Financial Officer Audrey Hsu said consolidated revenue for the first quarter was TWD 59.99 billion, up 7.5% year over year. She attributed the increase to three main factors: strong ICT momentum, higher sales revenue driven by handset demand and contributions from subsidiaries including Chunghwa Precision Test Tech, and stable performance in core telecom services such as mobile, broadband and data. → Wells Fargo’s Comeback Is Real—But Not Risk-Free Income from operations rose 4.6% from a year earlier, supported by the profitability of core telecom operations, subsidiary contributions, higher-value integrated projects, and scaling in IDC and cloud operations. Earnings per share increased to TWD 1.30 from TWD 1.26, which Hsu described as the company’s highest first-quarter EPS in the past 10 years. EBITDA was TWD 23.3 billion, with an EBITDA margin of 38.85%. Hsu said all key profitability metrics, including operating income, net income, EPS and EBITDA, came in ahead of expectations. She also said revenue growth outpaced the increase in operating expenses, reflecting “improved operating efficiency and disciplined cost management.” → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Lin said Chunghwa maintained its leadership in Taiwan’s mobile market. According to regulator data cited by the company, mobile revenue market share rose to 41.1%, which Lin called a historic high, while subscriber share increased to 39.7%. The gains were driven by growth in postpaid subscribers and strong roaming performance. Chunghwa’s 5G subscriber market share reached 39.4%, and 5G penetration among smartphone users increased to nearly 48% by March. The average monthly fee uplift from 5G migration was 36%, which Lin said was slightly lower due to a one-time factor. Mobile service revenue increased 4.4% year over year, while postpaid ARPU rose 3.6%, or TWD 20. In fixed broadband, Chunghwa said subscribers using speeds of 300 Mbps and above reached 40% of the total fixed broadband subscriber base. Fixed broadband revenue increased 3% year over year, and ARPU rose TWD 20 to TWD 818 per month. Lin said the company will continue promoting higher-speed offerings, including 500 Mbps and 1 Gbps services, to improve customer mix and drive additional ARPU. Chunghwa highlighted growth in several consumer offerings. Its multiple-play service, which integrates mobile, fixed broadband and Wi-Fi, surpassed 1 million subscriptions in the quarter, up 15% year over year. Wi-Fi penetration among fixed broadband subscribers reached 55%. The company also reported stronger video subscriber growth, aided by interest in the 2026 World Baseball Classic. Total video subscribers across MOD and Hami Video rose 6% quarter over quarter and exceeded 3 million. Hami Video ARPU posted double-digit year-over-year growth. Lin said Chunghwa plans to build on user engagement around upcoming sports events, including the FIFA World Cup in the second quarter and the Asian Games in the third quarter. Consumer cybersecurity services remained above 1 million subscribers, and transaction users for direct carrier billing services also exceeded 1 million during the quarter. Chunghwa’s group ICT revenue increased 25% year over year in the first quarter, while recurring ICT revenue grew 11%. Lin said growth was broad across major services, particularly cybersecurity, IDC and international public cloud services, though cybersecurity revenue declined because of a high comparison base from the prior year. Among key ICT categories, IDC revenue increased 29%, cloud revenue rose 43%, and AIoT revenue grew 26%. Lin said IDC revenue benefited from installation projects for manufacturing companies, cloud revenue was supported by government taxation projects, and smart environment solutions continued to contribute to AIoT growth. Big data service revenue rose 8%, while 5G private network services revenue surged due to project revenue recognition from domestic and international public sectors. ICT order intake reached a new high of TWD 20 billion, led by network resilience projects and a large follow-on project for a national fishery and surveillance system. Lin said the smart surveillance project value exceeded TWD 1 billion. He also cited Chunghwa’s AI traffic flow identification and analysis technologies as supporting smart transportation project wins. In response to an analyst question about the sustainability of ICT growth, management said it remains confident in the outlook due to ongoing digital transformation demand, AI-related value creation and the company’s use of agentic AI to upgrade services for enterprise customers. Lin said Chunghwa is continuing a gradual rollout of its 5G standalone network, describing the deployment as necessary for an eventual transition to 6G. The company is using standalone network capabilities for select verticals, including unmanned vehicles and autonomous driving, and is expanding deployment in high-traffic areas for commercial demand and major events. The company also emphasized its AI strategy. Lin said Chunghwa has expanded the use of agentic AI following internal generative AI initiatives launched in 2025. He highlighted the company’s self-developed CHT AI Factory platform, which integrates full-stack solutions, compute power, AI modules, models and agents. Chunghwa said the platform supports enterprise copilots and AI-enabled applications in areas such as smart home ecosystems and smart manufacturing. International subsidiary revenue increased 20% year over year, led by ICT project deliveries in the U.S. and Southeast Asia. U.S. revenue rose 89% due to large-scale AI supply chain projects, while Southeast Asia revenue grew 16% from phased construction work at a key customer facility in Singapore. Satellite service revenue increased 16%, and international private leased circuit revenue rose 6%. Hsu said first-quarter capital expenditures totaled TWD 4.55 billion, down 15.9% year over year. Mobile CapEx declined 24.4% as the company moves beyond the peak of its 5G deployment cycle, while non-mobile CapEx decreased 12.8% against a higher prior-year base. In the Q&A, management said 2026 non-mobile investment includes IDC and AI data center construction, undersea cable investments, network resilience, lifecycle management and capacity expansion for AIoT and 5G traffic. The company ended the quarter with free cash flow of TWD 6.65 billion and a net debt-to-EBITDA ratio of zero. Hsu said Chunghwa’s cash generation continues to support both business expansion and shareholder returns. Chunghwa Telecom Co, Ltd. is the largest integrated telecommunications service provider in Taiwan, serving both consumer and enterprise customers across the island and through international telecommunications links. The company offers a full range of voice, data and multimedia services and operates as the incumbent fixed-line operator while also competing in mobile, broadband and enterprise markets. Its network footprint and traffic interchange capabilities support domestic communications and cross-border connectivity for carriers and multinational businesses. Chunghwa Telecom's product and service portfolio includes fixed-line telephony, mobile services (including 4G and 5G wireless access), broadband internet (DSL and fiber-to-the-home), and IPTV. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Chunghwa Telecom Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Revenue: TWD59.99 billion, a record high for the first-quarter. Operating Income: Increased by 4.6% year-over-year. Net Income: EPS increased from TWD1.26 to TWD1.3, the highest first-quarter EPS in the past 10 years. EBITDA: TWD23.3 billion with an EBITDA margin of 38.85%. Mobile Revenue Market Share: Rose to 41.1%. 5G Subscriber Market Share: Increased to 39.4%. Mobile Service Revenue Growth: 4.4% year-over-year increase. Postpaid ARPU: Grew by 3.6%, TWD20 year-over-year. Fixed Broadband Revenue: 3% increase year-over-year. Fixed Broadband ARPU: Increased by TWD20 to TWD818 per month. ICT Revenue Growth: Increased by 25% year-over-year. Enterprise Business Group Revenue: Rose by 8.5% year-over-year. International Subsidiary Revenue: Grew 20% year-over-year. Free Cash Flow: TWD6.65 billion. CapEx: TWD4.55 billion, a planned decrease of 15.9% year-over-year. Warning! GuruFocus has detected 3 Warning Sign with FRA:8QG0. Is CHT fairly valued? Test your thesis with our free DCF calculator. Release Date: May 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Chunghwa Telecom Co Ltd (NYSE:CHT) reported a record high revenue for the first quarter of 2026, driven by strong ICT revenue growth. The company announced a cash dividend per share of TWD5.2 with a payout ratio of 104.2%, reflecting confidence in operational performance. CHT's mobile revenue market share rose to 41.1%, a historic high, with strong growth in postpaid subscribers and 5G adoption. The company's AI initiatives, including the CHT AI Factory platform, are contributing to revenue growth, particularly in AI data centers. CHT maintained its MSCI ESG rating of AAA and ranked in the top 5% of the S&P Global Sustainability Yearbook, highlighting its commitment to ESG benchmarks. The average monthly fee uplift from 5G migration slightly decreased to 36% due to a one-time factor. Revenue from cybersecurity services declined due to a high comparison base from the previous year. Fixed income before tax for the Enterprise Business Group dropped by 2.7%, mainly due to a decrease in fixed voice service. The company reported a planned year-over-year decrease in CapEx by 15.9%, reflecting a reduction in mobile CapEx as 5G deployment peaks. Despite strong revenue growth, certain project-related costs increased alongside higher ICT revenue recognition, impacting overall cost control. Q: How sustainable is the ICT business, and what is the outlook for the rest of 2026 and beyond? What is the impact of AI on the IT services industry? A: Angela Tsai, Vice President of Financial Department, stated that Chunghwa Telecom remains confident in the sustainability and positive outlook of their ICT business due to organic growth and AI contributions. The introduction of agentic AI is expected to enhance services and generate revenue. AI's impact is significant in the enterprise sector, enhancing services and contributing to overall revenue growth. Q: You guided for higher non-mobile CapEx for 2026. Could you elaborate on that and the underlying trend within the non-mobile CapEx guidance? A: Angela Tsai explained that the increase in non-mobile CapEx for 2026 is due to investments in IDC construction and undersea cable projects to enhance network resilience. These investments are expected to contribute to revenue growth. Audrey Wen-Hsin Hsu, CFO, added that non-mobile CapEx focuses on resilience, lifecycle management, and expanding capacity for AIoT and 5G traffic. Q: How does Chunghwa Telecom plan to leverage AI in its business operations? A: President Rong Shy Lin highlighted that Chunghwa Telecom is utilizing agentic AI to enhance operational workloads and upgrade service offerings. The company is monetizing its AI infrastructure, particularly through AI data centers, and has developed the CHT AI Factory platform to support enterprise AI applications, including smart home ecosystems and smart manufacturing. Q: What are the key growth drivers for Chunghwa Telecom's enterprise ICT business? A: President Rong Shy Lin noted that the key growth drivers for the enterprise ICT business include IDC, cloud, and AIoT services, which posted significant year-over-year growth. The company is also seeing strong demand for cybersecurity, international public cloud services, and smart surveillance projects. Q: Can you provide an update on Chunghwa Telecom's international business performance? A: President Rong Shy Lin reported that international subsidiary revenue grew by 20% year-over-year, driven by major ICT project deliveries in the United States and Southeast Asia. The company secured large-scale project contracts and expanded submarine cable capacity to meet connectivity demands, supporting long-term revenue growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

TAIPEI, May 7, 2026 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its un-audited operating results for the first quarter of 2026. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs") on a consolidated basis. (Comparisons throughout the press release, unless otherwise stated, are made with regard to the prior year period.) First Quarter 2026 Financial Highlights Total revenue increased by 7.5% to NT$ 59.99 billion. Consumer Business Group revenue increased by 6.2% to NT$ 36.73 billion. Enterprise Business Group revenue increased by 8.5% to NT$ 18.81 billion. International Business Group revenue increased by 10.7% to NT$ 2.70 billion. Total operating costs and expenses increased by 8.3% to NT$ 46.89 billion. Operating income increased by 4.6% to NT$ 13.10 billion. EBITDA increased by 3.4% to NT$ 23.30 billion. Net income attributable to stockholders of the parent increased by 3.2% to NT$ 10.11 billion. Basic earnings per share (EPS) was NT$1.30. Total revenue, operating income, net income attributable to stockholders of the parent, and EPS all exceeded the high-end target of quarterly guidance. "We began 2026 with a strong start, delivering financial performance across revenue, operating income, net income attributable to stockholders of the parent and EPS all exceeding our quarterly forecasts. Moreover, revenue reached a first-quarter record, the highest since 2012. These results reflect the continued strength of our business momentum," said Mr. Chih‑Cheng Chien, Chairman and CEO of Chunghwa Telecom. "This performance was primarily driven by robust growth in our ICT business, where both recurring revenue and order intake reached new highs. Our ICT revenue grew significantly year over year, supported by strong demand across key areas such as IDC, cloud, and AIoT services, underscoring our success in capturing emerging digital and AI-driven opportunities," said Mr. Rong-Shy Lin, President of Chunghwa Telecom. "Our mobile and broadband businesses also continued to deliver stable growth, benefiting from escalating 5G penetration and ongoing improvements in ARPU. Notably, our four value-added services all exceeded their remarkable million-subscriber thresholds, demonstrating our success in delivering value to users. These results reflect not only the resilience of our core operations, but also the effectiveness of our long-term strategy to balance stable cash-generating businesses with high-growth digital initiatives," Mr. Lin continued. "We are committed to advancing our 6G transition and AI-powered future. Our phased 5G standalone deployment is strengthening networking founding by targeting services in select verticals and high-traffic commercial districts for the 6G era," Mr. Lin added. "Meanwhile, by building 'CHT AI Factory platform' to integrate our DeepFlow solutions, compute power, AI models and agents, we offer AI-enabled applications to customers and accelerate AI-related revenue growth in 2026. Alongside our technology advancements, ESG remains a core pillar of our long‑term strategy. We are confident in our ability to achieve sustainable growth and create long‑term value for our shareholders." Revenue Chunghwa Telecom's total revenues for the first quarter of 2026 increased by 7.5% to NT$ 59.99 billion. Consumer Business Group's revenue for the first quarter of 2026 increased by 6.2% Year-over-year to NT$ 36.73 billion and income before tax increased by 5.3% year-over-year, supported by steady increases in core telecom business and strong iPhone demands. Enterprise Business Group's revenue for the first quarter of 2026 increased 8.5% year-over-year to NT$ 18.81 billion, driven by robust ICT growth, while pre-tax profit declined 2.7% due to fixed voice service decrease. Notably, ICT order intake hit a quarterly record-high, led by network resilience, anti-fraud initiatives, and large projects for national fiscal and public surveillance systems, underpinning future growth momentum. International Business Group's revenue for the first quarter of 2026 increased by 10.7% to NT$ 2.70 billion and income before tax increased by 1.6% year-over-year, driven by rising demand for ICT services and stronger roaming revenue. In addition, we expanded investment in the AUG-East submarine cable this quarter, boosting Taiwan to Japan and Taiwan to Singapore bandwidth to 18+ Tbps, supporting international business growth. Operating Costs and Expenses Total operating costs and expenses for the first quarter of 2026 increased by 8.3% to NT$ 46.89 billion, mainly due to higher costs associated with growth in sales and ICT project revenue, as well as an increase in personnel expenses. Operating Income and Net Income Operating income for the first quarter of 2026 increased by 4.6% to NT$ 13.10 billion. The operating margin was 21.75%, as compared to 22.44% in the same period of 2025. Net income attributable to stockholders of the parent increased by 3.2% to NT$ 10.11 billion. Basic earnings per share was NT$1.30. Cash Flow and EBITDA Cash flow from operating activities, as of March 31st, 2026, decreased by 13.6% year over year to NT$ 11.19 billion. Cash and cash equivalents, as of March 31st, 2026, increased by 20.8% to NT$ 35.10 billion as compared to that as of March 31st, 2025. EBITDA for the first quarter of 2026 was NT$ 23.30 billion, increased by 3.4% year over year. EBITDA margin was 38.85%, as compared to 40.37% in the same period of 2025. Business Highlights Mobile As of March 31st, 2026, Chunghwa Telecom had 13.34 million mobile subscribers, representing a 1.7% year-over-year increase. In the first quarter, total mobile service revenue increased by 4.4% to NT$ 17.70 billion, while mobile post-paid ARPU excluding IoT SIMs grew 3.6% year over year to NT$ 573. Fixed Broadband/HiNet As of March 31st, 2026, the number of broadband subscribers slightly increased by 0.5% to 4.45 million. The number of HiNet broadband subscribers increased by 1.4% to 3.80 million. In the first quarter, total fixed broadband revenue grew 3.0% year over year to NT$ 11.81 billion, while ARPU increased 2.5% to NT$ 818. Fixed line As of March 31st, 2026, the number of fixed-line subscribers was 8.57 million. Financial Statements Financial statements and additional operational data can be found on the Company's website at http://www.cht.com.tw/en/home/cht/investors/financials/quarterly-earnings NOTE CONCERNING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about Chunghwa's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwa's filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this press release reflect the current belief of Chunghwa as of the date of this press release and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law. This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. NON-GAAP FINANCIAL MEASURES To supplement the Company's consolidated financial statements presented in accordance with International Financial Reporting Standards pursuant to the requirements of the Financial Supervisory Commission, or T-IFRSs, Chunghwa Telecom also provides EBITDA, which is a "non-GAAP financial measure". EBITDA is defined as consolidated net income (loss) excluding (i) depreciation and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other financing costs and derivative transactions), (iii) other income, net, (iv) income tax, (v) (income) loss from discontinued operations. In managing the Company's business, Chunghwa Telecom relies on EBITDA as a means of assessing its operating performance because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax (iv) other expenses or income not related to the operation of the business. CAUTIONS ON USE OF NON-GAAP FINANCIAL MEASURES In addition to the consolidated financial results prepared under T-IFRSs, Chunghwa Telecom also provide non-GAAP financial measures, including "EBITDA". The Company believes that the non-GAAP financial measures provide investors with another method for assessing its operating results in a manner that is focused on the performance of its ongoing operations. Chunghwa Telecom's management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company's operating results, as well as when forecasting and analyzing future periods. However, the Company recognizes that: these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Company's T-IFRSs financial measures; these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Company's T-IFRSs financial measures; these non-GAAP financial measures should not be considered to be superior to the Company's T-IFRSs financial measures; and these non-GAAP financial measures were not prepared in accordance with T-IFRSs and investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principle. Further, these non-GAAP financial measures may be unique to Chunghwa Telecom, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company's results to the results of other companies. Readers are cautioned not to view non-GAAP results as a substitute for results under T-IFRSs, or as being comparable to results reported or forecasted by other companies. About Chunghwa Telecom Chunghwa Telecom (TAIEX 2412, NYSE: CHT) ("Chunghwa" or "the Company") is Taiwan's largest integrated telecommunications services company that provides fixed-line, mobile, broadband, and internet services. The Company also provides information and communication technology services to corporate customers with its big data, information security, cloud computing and IDC capabilities, and is expanding its business into innovative technology services such as IoT, AI, etc. Chunghwa has been actively and continuously implemented environmental, social and governance (ESG) initiatives with the goal to achieve sustainability and has won numerous international and domestic awards and recognitions for its ESG commitments and best practices. For more information, please visit our website at www.cht.com.tw Contact: Angela Tsai Phone: +886 2 2344 5488 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/chunghwa-telecom-reports-un-audited-consolidated-operating-results-for-the-first-quarter-of-2026-302765329.html