CHT(CHT) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported third-quarter revenue of NT 57.92 billion, marking a 4.2% increase year-over-year 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 NT 1.16 to NT 1.22, the highest third-quarter EPS in eight years [18] - EBITDA recorded a 4% gain, reaching NT 22.11 billion, with an EBITDA margin of 38.17%, consistent with the previous year [18][19] Business Line Data and Key Metrics Changes - Mobile revenue market share climbed to 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 efforts [8] - Consumer application services saw a 22% year-over-year growth in multi-play packages, while video services fluctuated due to the previous year's Olympic broadcasts [9] - The enterprise ICT business reported a 14% year-over-year increase in revenue, with significant growth in recurring ICT revenue [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 US subsidiary achieved 70% year-over-year revenue growth, driven by a construction project for a Taiwan-based high-tech company [12] - Southeast Asia markets are thriving, with successful introductions of proprietary solutions in Thailand and other regions [13] Company Strategy and Development Direction - The company emphasizes group expansion and AI-related initiatives as critical for mid-term to long-term development [3] - Recent achievements include the successful public listing of Chunghwa Telecom Security and the launch of Event AI, focusing on monetizing AI innovation [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, particularly in restoring communication during natural disasters [5] - Management noted the positive trajectory in mobile and fixed broadband services, expecting continued growth in Taiwan's favorable market landscape [8] Other Important Information - The company holds the largest portfolio of AI-related patents in the industry, providing a solid base for future development [4] - The successful introduction of smart city solutions and cybersecurity services to international markets demonstrates the company's global expansion efforts [13] Q&A Session Summary Question: What is the driver of the international project business? - The international business is driven by opportunities in the US and Japan, particularly in the AI supply chain and high-tech company projects [27][28] - The introduction of smart city-related projects and proprietary solutions in Southeast Asia is also a significant growth driver [30]