CHT(US:CHT)2026-02-03 09:02Financial Performance and Key Metrics - Chunghwa Telecom reported a record high full-year revenue of TWD 236.11 billion for 2025, reflecting a 2.7% increase compared to 2024, driven by strong mobile device sales and robust performance in the ICT sector [20][21] - The company's EPS reached TWD 4.99, marking an 8-year high and extending annual growth momentum for the sixth consecutive year [3][21] - In Q4 2025, consolidated revenue was TWD 65.65 billion, a 0.5% year-over-year increase, marking the highest fourth-quarter revenue in nearly a decade [18][19] Business Line Performance - Mobile revenue market share increased to 41%, with subscriber market share at 39.7%, driven by growth in postpaid subscribers [7] - Fixed broadband ARPU reached NT$819 per month, a 3.8% increase year-over-year, supported by high-speed upgrade promotions [8] - ICT revenue declined by 6% year-over-year in Q4 due to a high comparison base, but full-year ICT revenues still recorded robust growth [10][11] Market Performance - 5G subscriber market share increased to 39.2%, with a penetration rate of 46.4% among smartphone users by the end of 2025 [7] - Revenue from international subsidiaries decreased by 7% year-over-year, primarily due to lower demand for voice services [14] - However, revenue in South Asia and Southeast Asia markets increased by 12% year-over-year, supported by completed construction projects [15] Company Strategy and Industry Competition - The company plans to focus on extending pre-6G opportunities in AIOT, satellite, and big data services, expecting combined revenue to surpass TWD 10 billion in 2026 [5] - Chunghwa Telecom aims to leverage its satellite services as part of government contracts to enhance long-term service agreements [14] - The company is also investing in AI-driven connectivity and edge computing to create new revenue streams [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence entering 2026, citing a stable mobile market and successful fixed broadband strategies [4] - The company anticipates continued growth in ICT business driven by digital transformation opportunities [26] - Operating costs are expected to increase by 3.5% to 3.7%, primarily due to investments in talent and infrastructure [26][33] Other Important Information - Chunghwa Telecom received multiple awards for its ESG accomplishments and was recognized as one of the World's Most Trustworthy Companies in 2025 [6] - The company secured a 20-year corporate power purchase agreement for renewable energy to support its 2045 net zero commitment [6] Q&A Session Summary Question: Details on the increase in non-mobile CapEx for 2026 - Management explained that the increase is driven by fixed line maintenance, satellite, cables, and IDC investments [31][32] Question: Clarification on the increase in operating costs - Management highlighted that the increase is due to investments in human resources, electricity costs, and higher depreciation [33][34] Question: Request for more detailed breakdown of non-mobile CapEx - Management acknowledged the request but noted that they do not separately disclose exact numbers for each non-mobile item [35][36]