CHUNGHWA TELECOM CO LTD Q1 FY2025 earnings call

• Strategic Achievements: Executed Sea, Land, and Sky advanced network strategy. Collaborated with partners to integrate ST-2 high-orbit satellite with 5G base stations. Concluded strategic partnership with Astranis to bring a dedicated MicroGEO satellite to Taiwan. Invested in E2A trans-Pacific undersea cable.
• Business Overview: In Taiwan's mobile market, had largest revenue share (40.5%) and subscriber share (39.1%) by March, 5G market share 38.7%. Fixed broadband cross-tier upgrade promotion package well-received, subscribers with speeds of 300Mbps and above increased 16% year-over-year.
• Customer Application Services: Multiple-play packages grew 33% year-over-year. Video business subscriptions increased 12.5% year-over-year, Hami Video subscribers up 45% year-over-year. Consumer cybersecurity subscription surged 21% year-over-year.
• Awards and Recognitions: 5G Smart Port solution recognized as Technology Innovation of the Year by Asian Telecom Awards. Ranked Top 5 for S&P Global ESG score for 3rd consecutive year. Secured highest A ranking from CDP for climate and supplier engagement leadership for 2nd consecutive year. First Taiwanese telco certified under stringent international anti-bribery standard.

CBG (Consumer Business Group)

• Mobile service revenue in the first quarter increased about 2% year-over-year, mainly due to subscriber number increase and continued 5G migration. Mobile ARPU had a slight quarter-over-quarter increase. Fixed broadband revenue and ARPU exhibited another quarterly increase by 2.5% and 2.1% year-over-year respectively.

EBG (Enterprise Business Group)

• Enterprise ICT business revenue increased by 13% year-over-year, driven by project revenue recognition, robust performance across major pillars, and continued growth in recurring revenue. Cybersecurity, IDC, and cloud businesses had year-over-year revenue growth of 40%, 29%, and 13% respectively. 5G private network and AIoT service business also saw revenue growth. Secured a network integration contract worth over NT$1 billion from a leading financial holding company.

IBG (International Business Group)

• Revenues from overseas subsidiaries increased by 8.2% year-over-year mainly due to growing ICT services provided to high-tech customers in the United States and Southeast Asia markets. Announced investment in the new submarine cable system E2A to meet growing demand.

• Revenue for the first quarter of 2025 was broadly in line with the guidance provided earlier in the year.
• Income from operations, net income, EPS, and EBITDA all surpassed the Q1 guidance by a modest margin.
• Outperformance driven by steady growth of core businesses, improved profitability in ICT business, and lower-than-expected operating costs.