Financial Data and Key Metrics Changes - The company reported third-quarter revenue of NTD 57.92 billion, marking a 4.2% year-over-year increase and the highest third-quarter revenue in nine years [17] - Operating income rose by 6.4%, while net income increased by 4.8% year-over-year, reflecting strong performance across mobile and fixed broadband services [17][18] - Earnings per share (EPS) increased from NTD 1.16 to NTD 1.22, the highest third-quarter EPS in eight years [18] Business Line Data and Key Metrics Changes - Mobile revenue market share reached 40.8%, with a subscriber share of 39.4%, a 1.6 percentage point year-over-year increase [7] - Fixed broadband revenue grew by 3.2% year-over-year, driven by high-speed migration and promotional success [8] - Consumer application services saw a 22% year-over-year growth in multi-play packages, while cybersecurity services recorded a 17% year-over-year growth [9][10] Market Data and Key Metrics Changes - The 5G subscriber market share rose to 38.8%, with a penetration rate of 44.7% among smartphone users [7] - The U.S. subsidiary achieved 70% year-over-year revenue growth, primarily from a construction project in Texas [12] - Southeast Asia markets are thriving, with successful introductions of proprietary solutions in Thailand and other regions [14] Company Strategy and Development Direction - The company emphasizes group expansion and AI-related initiatives as critical for mid-term to long-term development [3] - A new subsidiary, Event AI, was launched to monetize AI innovations, and the company holds the largest portfolio of AI-related patents in the industry [4] - The company is committed to ESG practices, having issued a TWD 3.5 billion sustainability bond to promote environmental projects [5] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year financial results, supported by leadership across all business segments [3] - The company highlighted its commitment to social responsibility, demonstrated during a catastrophic typhoon in Taiwan [5] - The favorable mobile market landscape in Taiwan is expected to support continued positive growth [8] Other Important Information - The company completed the public listing of its cybersecurity subsidiary in September and plans for an upcoming IPO of International Integrated Systems [4] - The company secured significant projects, including a large-scale network infrastructure project from a leading life insurance company in Taiwan [11] Q&A Session Summary Question: What is the driver of the international project business? - The international business is driven by opportunities in the U.S. and Japan, particularly in the AI supply chain, with successful introductions of cybersecurity services in Southeast Asia [27][28]

Core Viewpoint - Chunghwa Telecom reported strong financial results for the third quarter of 2025, with total revenue reaching NT$ 57.92 billion, marking a 4.2% increase year-over-year, driven by growth in its core telecom and ICT services [2][4]. Financial Highlights - Total revenue increased by 4.2% to NT$ 57.92 billion [2][6]. - Consumer Business Group revenue rose by 2.2% to NT$ 35.18 billion [2][7]. - Enterprise Business Group revenue grew by 7.4% to NT$ 18.91 billion [2][8]. - International Business Group revenue decreased by 1.9% to NT$ 2.33 billion [2][9]. - Total operating costs and expenses increased by 3.6% to NT$ 45.82 billion [2][10]. - Operating income increased by 6.4% to NT$ 12.10 billion, with an operating margin of 20.9% [3][11]. - EBITDA rose by 4.0% to NT$ 22.11 billion, with an EBITDA margin of 38.17% [3][12]. - Net income attributable to stockholders increased by 4.8% to NT$ 9.44 billion, with basic earnings per share (EPS) at NT$ 1.22 [3][11]. Business Performance - The core telecom business showed strong performance, with a 5G subscriber share of 38.8% and 5G penetration among smartphone users at 44.7% [4]. - The Consumer Business Group experienced a 2.2% increase in revenue and an 11.4% rise in income before tax [4][7]. - The Enterprise Business Group achieved a 14.5% growth in ICT revenue, driven by IDC, cloud, and cybersecurity services [4][8]. - The US subsidiary reported a remarkable 70% revenue growth, attributed to AI supply chain projects [4]. Strategic Initiatives - Chunghwa Telecom holds Taiwan's largest portfolio of AI-related patents and recently established the InventAI subsidiary to monetize AI innovations [5]. - The cybersecurity subsidiary, CHT Security, completed its public listing, with plans for an upcoming IPO for International Integrated Systems [5]. - The company issued NT$ 3.5 billion in sustainability bonds to support biodiversity and electric vehicle initiatives, reflecting its commitment to ESG goals [5].

Core Insights - Singapore telecom companies, including Singtel and Starhub, are transitioning from traditional telecom services to digital infrastructure and enterprise solutions as their growth in mobile and broadband has stagnated [1][3][14] Telecom Industry Overview - Mobile subscriptions in Singapore are projected to grow at a compound annual growth rate (CAGR) of 4.3% from 2021 to 2025, but average revenue per user (ARPU) has declined by 30% from 2018 to 2023 [2] - Despite the decline in ARPU, Singtel and Starhub are expected to invest a total of S$1.93 billion in capital expenditures for 5G [2] Singtel Financial Performance - In Q1 FY2026, Singtel's revenue remained stable at S$3.4 billion, with underlying net profit increasing by 14% year-on-year to S$686 million, driven by strong profit growth from regional businesses [5] - Singtel's capital expenditure plans include S$1.7 billion for core business and an additional S$0.8 billion for new initiatives by 2028 [7] - Singtel's recent core dividend of S$0.123 per share represents an 82% payout ratio and a dividend yield of approximately 2.9% [7] Starhub Financial Performance - Starhub's revenue for the first half of 2025 was stable at S$1.1 billion, but net profit dropped 42% year-on-year to S$47.9 million due to a one-time penalty [9][10] - Starhub's enterprise segment grew by 6.8% year-on-year, supported by strong cybersecurity services [10] - Starhub is guiding for a dividend of at least S$0.06 per share for 2025, with a current dividend yield of 5.2% [11] Challenges and Investment Considerations - The Singapore telecom industry faces intense competition, and 5G monetization is not expected to yield significant returns in the near term [12] - Singtel's capital expenditure is projected to be around 12% of total revenue, while Starhub's is expected to be 10% [12] - Singtel's current price-to-earnings (P/E) ratio is approximately 22 times, lower than its three-year average of 27.6 times, while Starhub's P/E is around 16.8 times compared to its three-year average of 17.2 times [13]

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]