Chunghwa Telecom Co., Ltd. Q2 FY2025 earnings call

• Strategic achievements: Launched Southeast Asia Japan Cable 2 Stage 2, invested in AUG East submarine cable, obtained OneWeb LEO services license, partnered with NTT for cross-border co-performance at Expo 2025. Received MSCI CSG AAA rating, Frost & Sullivan award, and recognized as one of top 5% listed companies by TWSE.
• Mobile: Strengthened leadership in Taiwan mobile market with 40.7% market share and 39.1% subscriber share, 5G market share at 38.7%.
• Fixed Broadband: Revenue up 1.8% YoY, ARPU up ~2%, subscribers with 300Mbps+ speeds up 14%.
• Consumer Application Services: Multiple packaging grew 26% YoY, video subscriptions up 6%, revenue up 5%, cybersecurity up 20% YoY.
• Enterprise ICT: Strong performance with group enterprise ICT revenue up 27% YoY, recurring ICT up 25%, core pillars showing significant growth.
• International Subsidiaries: Southeast Asia had double-digit revenue growth despite overall decline due to project fluctuations.

Mobile:

• In Q2 2025, mobile market share rose to 40.7% as of June, with subscriber share at 39.1%. 5G market share was 38.7%. Mobile service revenue grew approximately 2% year-over-year, and average month fee increased by 38% as users upgraded to 5G.

Fixed Broadband:

• Fixed Broadband revenue increased 1.8% year-over-year. Fixed Broadband ARPU rose approximately 2%, and the number of subscribers with speeds of 300 megabits per second and above increased by 14% year-over-year.

Consumer Application Services:

• Multiple packaging, integrating mobile, fixed broadband, and WiFi services, achieved impressive year-over-year growth of 26%. Video subscriptions increased 6% and revenues 5% year-over-year. Consumer cybersecurity services recorded a 20% year-over-year growth.

Enterprise ICT:

• Group enterprise ICT revenue increased by 27% year-over-year with recurring ICT revenue rising 25%. Core service pillars IDC, AIoT, and cloud delivered robust year-over-year growth of 71%, 40%, and 40% respectively. Cybersecurity and 5G private networks reported growth of 11% and 150% respectively.

International Subsidiaries:

• Revenue from international subsidiaries declined by 41% year-over-year primarily due to project-based fluctuations, but Southeast Asia market delivered double-digit revenue growth driven by demand for ICT services from high-tech companies.

• During Q2 2025, revenue, operating income, net income, EPS, and EBITDA all exceeded the upper end of the forecast.
• For the first half of 2025, revenue also outperformed expectations, driven by steady growth of core business, enhanced profitability in ICT, strong sales of mobile phones and related products, and lower-than-expected operating costs.