In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Chunghwa Telecom Co Ltd (NYSE:CHT) reported a 4.3% year-over-year increase in net income and EPS for the first quarter of 2025.
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The company maintained its leading position in Taiwan's mobile market with a revenue share of 40.5% and a subscriber share of 39.1%.
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Chunghwa Telecom's 5G market share reached 38.7%, contributing to a 42% increase in the average monthly fee uplift from 5G migration.
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The fixed broadband business saw a 2.5% increase in revenue and a 2.1% increase in ARPU year-over-year, driven by subscriber upgrades to higher speed tiers.
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The enterprise ICT business experienced a 13% year-over-year revenue increase, with significant growth in cybersecurity, IDC, and cloud services.
Negative Points
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Despite overall growth, Chunghwa Telecom Co Ltd (NYSE:CHT) faced a 3.8% year-over-year decrease in income before tax from its EBG fixed voice revenue.
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Cash flows from operating activities decreased by 8.6% year-over-year due to higher settlements of accounts payable.
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Free cash flow declined by 17.4% year-over-year, attributed to increased capital expenditures for 5G and 4G equipment deployment.
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Property, plant, and equipment declined by 1.1% as depreciation expense exceeded net additions of fixed assets.
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The company experienced a reduction in accounts payable, contributing to a 5.5% decrease in total liabilities.
Q & A Highlights
Q: Can you provide an overview of Chunghwa Telecom's financial performance for the first quarter of 2025? A: Wen-Hsin Hsu, Senior EVP & CFO, reported that revenue reached over TWD55 billion, marking a 1.6% year-over-year increase. Income from operations and net income rose by 5% and 4.3%, respectively. Earnings per share increased to TWD1.26. Both EBITDA and net income reached their highest levels in nine years for a first quarter period.
Q: How did Chunghwa Telecom's mobile and broadband services perform in the first quarter? A: Rong-Syh Lin, President, stated that the mobile service revenue increased by about 2% year-over-year, driven by subscriber growth and 5G migration. The fixed broadband revenue and ARPU exhibited a quarterly increase of 2.5% and 2.1% year-over-year, respectively, due to continued speed upgrades by subscribers.
Q: What are the key achievements in Chunghwa Telecom's enterprise ICT business? A: President Lin highlighted a 13% year-over-year revenue increase in the enterprise ICT business, driven by cybersecurity, IDC, and cloud services. Cybersecurity revenue achieved its 13th consecutive quarter of growth, and the company secured a network integration contract worth over TWD1 billion.