Chunghwa Telecom Q4 Earnings Call Highlights

Core Insights - Chunghwa Telecom reported a full-year revenue increase of 2.7% year-over-year to TWD 236.11 billion for 2025, driven by higher mobile handset volumes and strong performance in semiconductor testing and ICT contributions [1][5][8] - The company achieved an all-time high in full-year revenue and an EPS of TWD 4.99, marking an 8-year high and the sixth consecutive year of growth [4][8] - Fourth quarter revenue reached TWD 65.65 billion, up 0.5% year-over-year, attributed to strong mobile device sales and sustained momentum in core telecom services [3][5] Financial Performance - Full-year income from operations rose 3.6%, while net income increased by 4%, resulting in an EPS of TWD 4.99 compared to TWD 4.8 the previous year [1] - Fourth quarter income from operations fell 2.2% year-over-year due to one-off impairment losses related to the 3G network sunset [2] - EBITDA for the full year increased by 2.6% to TWD 88.77 billion, with an EBITDA margin of 37.6% [1] Market Position and Trends - Chunghwa maintained a 41% market share in mobile revenue and a 39.7% subscriber market share in Taiwan, with 5G subscriber market share reaching 39.2% by the end of 2025 [9] - The average monthly fee uplift from 5G migration remained at 41%, indicating strong demand for higher-tier services [9] - Fixed broadband ARPU rose to NT$819 per month, up 3.8% year-over-year, driven by high-speed upgrade promotions [10] ICT and Consumer Services - Group ICT revenue declined 6% year-over-year in the fourth quarter, although full-year ICT revenue still grew, supported by AIoT and IDC services [13] - Consumer application services saw a 17% year-over-year increase in multiple-play packages, marking 16 consecutive quarters of growth [11] - Hami Video's ARPU increased by over 25% year-over-year in the fourth quarter, despite an overall decline in subscriptions [12] 2026 Outlook and CapEx - Management projects approximately 2% revenue growth for 2026, with EPS guidance of NT$4.82 to NT$5.02 [6][17] - CapEx is budgeted at TWD 31.91 billion, with a 6.3% decrease in mobile CapEx and increased non-mobile spending for IDC and satellite services [6][18] - Rising costs are anticipated due to investments in AI talent and electricity [20] International Business and Network Investments - International subsidiary revenue fell 7% year-over-year in the fourth quarter, while revenue from South Asia and Southeast Asia increased by 12% [14] - The completion of the SJC2 submarine cable and the first phase of Apricot contributed to a 2.2% year-over-year growth in fixed line services revenue [16]