Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing significant growth and expansion in their coverage [1]

E x h i b i t 9 9.2 Chunghwa Telecom Co., Ltd. and Subsidiaries Consolidated Financial Statements for the Six Months Ended June 30, 2025 and 2024 and Independent Auditors' Review Report INDEPENDENT AUDITORS' REVIEW REPORT PWCR25001369 To the Board of Directors and Stockholders of Chunghwa Telecom Co., Ltd. Introduction We have reviewed the accompanying consolidated balance sheets of Chunghwa Telecom Co., Ltd. and its subsidiaries (the "Company") as of June 30, 2025 and 2024, and the related consolidated sta ...

Group 1 - The core viewpoint of the news is that Chunghwa Telecom (CHT) has shown a positive financial performance with a stock price increase and growth in revenue and net profit [1][2][3] - As of August 5, Chunghwa Telecom's stock price rose by 2.55% to $44.795 per share, with a total market capitalization of $34.749 billion [1] - Financial data indicates that as of March 31, 2025, Chunghwa Telecom's total revenue reached NT$55.808 billion, reflecting a year-on-year growth of 1.57%, while net profit attributable to shareholders was NT$9.799 billion, up 4.34% year-on-year [1] Group 2 - Chunghwa Telecom is a major telecommunications provider in Taiwan, established on July 1, 1996, with an initial capital of NT$96.477 billion [2] - The company operates in three main areas: fixed-line communication, mobile communication, and data communication, offering a wide range of services including voice services, dedicated circuits, internet access, and various value-added services [2] - The government reduced its stake in Chunghwa Telecom to below 50% on August 12, 2005, allowing the company to operate independently and enhancing its potential and service capabilities [2]

Financial Data and Key Metrics Changes - Revenue for the second quarter reached over NT$56 billion, marking a 4.8% year-over-year increase, driven mainly by the expansion of the ICT business and higher sales revenue [22][30] - Operating income and net income rose by 5.2% and 3.5% respectively compared to the same period last year, supported by growth in the Internet data center business and steady performance from subsidiaries [22][30] - Earnings per share increased from NT$1.27 to NT$1.31, reflecting consistent profitability and effective cost control, with EPS reaching the highest levels in nine years for the second quarter [22][30] - EBITDA increased by 3.5% year over year, reaching NT$22.58 billion, with an EBITDA margin of 39.8%, remaining broadly stable compared to last year [23][30] Business Line Data and Key Metrics Changes - Mobile service revenue grew approximately 2% year over year, with a mobile ARPU increase of 38% as more users upgraded to 5G [9] - Fixed broadband revenue increased by 1.8% year over year, driven by strategic bundle plans and symmetrical uplink/downlink speeds for services above 300 Mbps [10] - Enterprise ICT revenue increased by 27% year over year, with core service pillars like IDC, AIoT, and cloud showing robust growth of 40%, 75%, and 140% respectively [14] Market Data and Key Metrics Changes - Mobile market share rose to 40.7% as of June, achieving a new high, with the highest subscriber share among peers at 39.1% [8] - Southeast Asia market delivered double-digit revenue growth driven by demand for ICT services from high-tech companies [18] Company Strategy and Development Direction - The company continues to execute its "sea, land, and sky" strategy to enhance network resilience and seize future opportunities, including investments in undersea cables and satellite services [6][7] - The focus remains on innovation and operational excellence, with a commitment to governance and sustainability recognized by receiving the highest MSCI ESG rating of AAA [7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum of core businesses and highlighted the importance of strategic investments in ICT and satellite services to support future growth [5][6] - The company remains cautious about global market sentiment amid ongoing uncertainties but continues to invest strategically for long-term growth [18] Other Important Information - The company received the 2025 Taiwan Data Center Service Competitive Strategy Leadership Award from Frost Sullivan, recognizing its AI-ready data center capabilities [7] - Total assets increased by 1.9% as of June 30, 2025, primarily driven by an increase in current monetary assets [25] Q&A Session Summary - No specific questions were recorded during the Q&A session, and the call concluded without further inquiries from participants [33][34]

Financial Data and Key Metrics Changes - Revenue for the second quarter of 2025 reached over NT$56 billion, marking a 4.8% year-over-year increase, driven mainly by the expansion of the ICT business and higher sales revenue [23] - Operating income and net income rose by 5.2% and 3.5% respectively compared to the same period last year, supported by growth in the Internet data center business and steady increases in mobile services [23] - Earnings per share (EPS) increased from NT$1.27 to NT$1.31, reflecting consistent profitability and effective cost control, with EPS reaching its highest levels in nine years for the second quarter [23][24] - EBITDA increased by 3.5% year over year, reaching NT$22.58 billion, with an EBITDA margin of 39.8%, remaining broadly stable compared to last year [24] Business Line Data and Key Metrics Changes - Mobile service revenue grew approximately 2% year over year, with a mobile market share rising to 40.7% as of June, and a 38.7% share in the 5G segment [10] - Fixed broadband revenue increased by 1.8% year over year, driven by strategic bundle plans, with fixed broadband ARPU rising approximately 2% [11] - Enterprise ICT revenue increased by 27% year over year, with core service pillars like IDC, AIoT, and cloud services delivering robust growth of 40% and 75% respectively [15] Market Data and Key Metrics Changes - 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 [18][19] - The mobile market share in Taiwan reached a new high, with the highest subscriber share among peers at 39.1% [9] Company Strategy and Development Direction - The company continues to execute its "sea, land, and sky" strategy to enhance network resilience and seize future opportunities, including investments in undersea cables and satellite services [6][7] - The company aims to promote strategic bundles to support ARPU growth and incentivize existing mobile subscribers to add fixed broadband services [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong commitment to innovation and operational excellence, highlighting the successful launch of new services and partnerships [5][6] - The management noted ongoing investments in strategic markets despite global market uncertainties, particularly targeting overseas AIDC-related construction projects [19] Other Important Information - The company received the highest MSCI ESG rating of AAA, reflecting strong performance in governance and data privacy [7] - The company was recognized as one of the top 5% of listed companies by the Taiwan Stock Exchange for its commitment to corporate governance [8] Q&A Session Summary Question: What are the expectations for future revenue growth in the ICT sector? - Management indicated that the ICT sector is expected to continue its strong growth trajectory, driven by demand from financial and high-tech sectors [15] Question: How is the company addressing the decline in international subsidiary revenue? - Management noted that while there was a decline, the performance exceeded internal expectations when excluding the higher base effect, and they are focusing on strategic investments in Southeast Asia [19]

Core Viewpoint - Chunghwa Telecom reported strong financial results for Q2 2025, exceeding guidance across key metrics, driven by growth in core telecom services and enterprise ICT business despite global economic uncertainties [2][5][8] Financial Highlights - Total revenues for Q2 2025 increased by 4.8% to NT$ 56.73 billion [3][5] - Operating income rose by 5.2% to NT$ 12.54 billion, with an operating margin of 22.1% [8] - Net income attributable to stockholders increased by 3.5% to NT$ 10.17 billion, with basic earnings per share (EPS) at NT$ 1.31 [5][8] Segment Performance - Consumer Business Group revenue increased by 1.4% year-over-year to NT$ 34.07 billion, driven by mobile and fixed broadband ARPU growth [4][5] - Enterprise Business Group revenue surged by 12.4% year-over-year to NT$ 18.98 billion, with ICT revenue up 37% year-over-year [5][6] - International Business Group revenue decreased by 16.8% to NT$ 2.20 billion, primarily due to reduced demand for international fixed voice services [5][6] Operating Costs and EBITDA - Total operating costs and expenses increased by 4.8% to NT$ 44.19 billion, attributed to higher manpower costs and growing ICT business [7] - EBITDA for Q2 2025 was NT$ 22.58 billion, reflecting a 3.5% year-over-year increase, with an EBITDA margin of 39.80% [9] Subscriber Metrics - As of June 30, 2025, mobile subscribers totaled 13.13 million, with mobile service revenue increasing by 2.0% to NT$ 17.06 billion [10] - Fixed broadband subscribers slightly increased by 0.7% to 4.44 million, with fixed broadband revenue growing 1.8% year-over-year to NT$ 11.59 billion [11]

Financial Performance Highlights - 2Q25 revenue reached NT$56.73 billion, a 4.8% increase year-over-year, marking a 10-year high for any second quarter since 2016[13, 48] - H1 2025 revenue reached NT$112.54 billion, a 3.2% increase year-over-year, marking a 9-year high for any first half since 2016[13, 48] - 2Q25 net income was NT$10.17 billion, a 3.5% increase year-over-year, marking an 8-year high for any second quarter since 2017[13, 48] - H1 2025 EPS was NT$2.57, a 3.9% increase year-over-year, marking an 8-year high for any first half since 2017[13, 48] - 2Q25 EBITDA reached NT$22.58 billion, a 3.5% increase year-over-year, marking a 12-year high for any second quarter since 2014[13, 48] - The company's operating results exceeded the high-end earnings guidance[13, 55] Business Segment Performance - Mobile service revenue increased by NT$0.33 billion, a 2.0% increase year-over-year[16] - Fixed broadband revenue increased by NT$0.20 billion, a 1.8% increase year-over-year[22] - ICT emerging business revenue increased by 24.9% year-over-year, with IDC growing by 30.1%[12] - Group enterprise ICT revenue increased by 27% year-over-year[29] Strategic Initiatives and Achievements - The company obtained an exclusive commercial license for OneWeb LEO satellite services[13] - The company was upgraded to the highest MSCI ESG 'AAA' Rating[13]

Core Insights - Chunghwa Telecom has been awarded the 2025 Taiwan Competitive Strategy Leadership Award in the data center services industry for its achievements in strategy development, infrastructure modernization, and customer-centric innovation [1][7] - The company focuses on delivering scalable, sustainable, and AI-ready data center solutions to meet the evolving demands of enterprise and hyperscaler clients in Taiwan [2][3] Strategic Focus - Chunghwa Telecom excels in aligning strategic initiatives with market demand and executing them consistently, demonstrating a strong focus on addressing emerging customer needs [3][4] - The company is guided by a long-term growth strategy centered on infrastructure innovation, customer alignment, and sustainability, positioning itself as a key enabler of Taiwan's digital economy [4][5] Infrastructure Development - Chunghwa Telecom is investing in advanced infrastructure, including high-density data centers and AI-specific service offerings, with the upcoming Taoyuan hyperscale facility designed to deliver 12 megawatts of IT load [4][5] - The Existing Building Retrofitting Project aims to convert legacy sites into AI-ready data centers, enhancing power, cooling, and structural capabilities, thereby expanding the company's total IT load capacity [6] AI Initiatives - As part of its AI 2.0 strategic initiative, Chunghwa Telecom is upgrading IDC facilities across Taiwan into AI-ready data centers and developing its own AI computing cloud platform [5][6] - The company plans to leverage its AI capabilities to promote industry domain-specific AI applications, enhancing its service offerings [5]

Core Insights - Investors are evaluating the value opportunities between Telefonica (TEF) and Chunghwa (CHT) in the Diversified Communication Services sector [1] Valuation Metrics - Telefonica has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Chunghwa has a Zacks Rank of 3 (Hold) [3] - TEF's forward P/E ratio is 12.20, significantly lower than CHT's forward P/E of 28.66, suggesting TEF is undervalued [5] - TEF has a PEG ratio of 0.71, while CHT's PEG ratio is 22.74, indicating TEF's expected earnings growth is more favorable [5] - TEF's P/B ratio is 1.11 compared to CHT's P/B of 2.72, further supporting TEF's valuation advantage [6] - Based on these metrics, TEF has a Value grade of A, while CHT has a Value grade of D, positioning TEF as the superior value option [6]

Core Viewpoint - Chunghwa Telecom reported strong financial performance in Q1 2025, with notable growth in EPS and net income, driven by robust operations and a leading market position despite macroeconomic challenges [2][4]. Financial Highlights - Total revenues for Q1 2025 increased by 1.6% to NT$ 55.81 billion [4][6]. - Operating income rose by 5.0% to NT$ 12.52 billion, with an operating margin of 22.4% compared to 21.7% in Q1 2024 [10]. - Net income attributable to stockholders increased by 4.3% to NT$ 9.80 billion, with basic EPS at NT$ 1.26 [10][6]. - EBITDA for Q1 2025 was NT$ 22.53 billion, up 3.2% year-over-year, with an EBITDA margin of 40.37% [11][10]. Business Segment Performance - Consumer Business Group revenue decreased by 0.2% to NT$ 34.57 billion, while mobile service revenue increased by 3.1% due to 5G migration and rising postpaid subscribers [5][6]. - Enterprise Business Group revenue grew by 2.3% to NT$ 17.34 billion, driven by an 11.6% increase in ICT revenue [6][8]. - International Business Group revenue increased by 0.9% to NT$ 2.44 billion, with a 1.6% rise in income before tax attributed to growth in overseas subsidiaries [8][6]. Operational Developments - The company expanded its market share in Taiwan's mobile market to 40.5%, with a subscriber share of 39.1% [2]. - The number of mobile subscribers as of March 31, 2025, was 13.11 million, reflecting a 0.9% year-over-year decrease [12]. - Fixed broadband revenue grew by 2.5% year-over-year to NT$ 11.46 billion, with ARPU increasing by 2.1% to NT$ 798 [13]. Strategic Initiatives - Chunghwa Telecom launched a strategic partnership with Astranis for a dedicated Micro GEO satellite and invested in the E2A trans-Pacific undersea cable [3]. - The company is actively pursuing growth opportunities in international markets, particularly in Singapore, Vietnam, and Thailand [2].