Chunghwa Telecom Co Ltd is Taiwan's integrated telecom operator, providing fixed-line, wireless, and Internet and data services... Show more
Chunghwa Telecom is Taiwan's largest integrated telecommunications services provider, spanning mobile, fixed-line, broadband, and a fast-growing ICT segment. Its quarterly results offer a read on both the stability of Taiwan's core telecom market and the company's strategic shift toward higher-growth enterprise services such as cloud and data centers. This report matters because it tests whether the company's diversification beyond traditional connectivity can sustain revenue growth while preserving historically strong margins. With mobile and broadband subscriber bases maturing, investors are watching closely whether the ICT push can become a durable second growth engine rather than a one-quarter tailwind.
For the third quarter ended September 30, 2025, Chunghwa Telecom reported total revenue of NT$57.92 billion, a 4.2% increase from NT$55.61 billion a year earlier. Net income attributable to shareholders of the parent rose 4.8% to NT$9.44 billion, and basic EPS came in at NT$1.22, up from NT$1.16 in the prior-year quarter. Operating income increased 6.4% to NT$12.10 billion, with operating margin expanding to 20.9% from 20.5%.
The Consumer Business Group delivered revenue of NT$35.18 billion, up 2.2%, supported by steady mobile and fixed broadband services and higher device sales tied to iPhone demand. The Enterprise Business Group grew 7.4% to NT$18.91 billion, with ICT revenue up 14.5%, while the smaller International Business Group declined 1.9% to NT$2.33 billion on softer fixed voice demand. On a US-dollar basis, reported results were broadly in line with or slightly ahead of consensus estimates depending on the data provider.
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Chunghwa Telecom's third-quarter report reinforced the narrative of a steady, dividend-oriented telecom operator gradually accelerating its enterprise technology business. The record quarterly revenue and eight-year-high EPS were seen as confirmation that the ICT strategy is contributing to the top line, while the stable EBITDA margin suggested disciplined cost management. The most-watched signal for investors was the 14.5% jump in ICT revenue, which supports the company's pivot toward cloud, data center, and cybersecurity services. At the same time, the modest declines in international fixed voice revenue highlight an area of structural softness that continues to weigh on segment performance.
Looking ahead, investors should watch whether the ICT segment can maintain its double-digit growth trajectory beyond the third quarter. Management has emphasized high-value services such as internet data centers (IDCs), cloud, and cybersecurity, and the recent listing of its CHT Security subsidiary underscores its intent to monetize these capabilities.
Key subscriber metrics also remain important. Mobile post-paid average revenue per user (ARPU), excluding Internet of Things (IoT) SIMs, grew 1.8% year over year to NT$562, while fixed broadband ARPU rose 3.0% to NT$810. Sustaining these ARPU gains will be central to protecting the core business's profitability as subscriber growth matures.
Finally, cost and cash-flow trends deserve attention. Operating cash flow declined 8.6% year over year through September 30, 2025, partly due to the timing of settlements and front-loaded capital spending on 5G and 4G network deployment. Management has indicated that full-year mobile investment should remain below prior-year levels on an accrual basis, which could support free cash flow generation heading into year-end. Balancing continued ICT investment against margin stability will likely define how the market evaluates Chunghwa Telecom over the coming quarters.
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a company which engages in the provision of telecommunication and information related services
Industry MajorTelecommunications