Earnings Labs

Chunghwa Telecom Co., Ltd. (CHT)

Q2 2025 Earnings Call· Tue, Aug 5, 2025

$43.13

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Transcript

Operator

Operator

Good afternoon, ladies and gentlemen. Welcome to Chunghwa Telecom Conference Call for the Company's Second Quarter 2025 Operating Results. [Operator Instructions] And for your information, this conference call is now being broadcasted live over the Internet. A webcast replay will be available after the conference is finished. Please visit CHT IR website, www.cht.com.tw/ir under the IR Calendar section. And now I would like to turn the call over to Ms. Angela Tsai, Vice President of Financial Department. Thank you. Ms. Tsai, please go ahead.

Cho-Fen Tsai

Analyst

Thank you. I'm Angela Tsai, Vice President of Financial Department for Chunghwa Telecom. Welcome to our second quarter 2025 results conference call. Joining me on the call today are our President, Rong-Shy Lin; and our Chief Financial Officer, Audrey Hsu. During today's call, management will begin with the recent strategic achievements and provide an overview of our business in the second quarter, followed by a discussion of our segment performance and the financial results. After, we will move on to the question- and-answer portion of the call. On Slide 2, please read our disclaimers and note concerning forward-looking statements. Now I will turn the call over to President. President Lin, please go ahead.

Rong-Shy Lin

Analyst

Thank you, Angela, and hello, everyone. Welcome to our second quarter 2025 results conference call. We are pleased to report our exceptional financial results with revenue, operating income, net income and EPS exceeded the upper end of our forecast. For both the second quarter and the first half of the year, second quarter revenue achieved -- reached a 10-year high for the same period, fueled by the solid growth momentum of the core business and expanding ICT segment. Notably, ICT revenue also set a new record for any second quarter since 2021. These achievements underscore our strong commitment to innovation, operational excellence and delivering sustained value to our stakeholders. Meanwhile, I'll continue to execute our sea, land and sky strategy to enhance network resilience and seize future opportunities. In July, we officially launched the Southeast Asia Japan Cable 2 as Stage 2, enhancing network performance across the Asia Pacific region and supporting the rapid growth of bandwidth-intensive applications such as AI and the cloud computing in addition to the previously announced investment in E2A, the Trans-Pacific undersea cable connecting Asia to North America. We announced to invest in new Asia United Gateway, AUG, East submarine cable in July, which connects the Asia and is expected to bring in revenue after its completion in 2029. In terms of our multi-orbit satellite business, in the second quarter, Chunghwa Telecom not only obtained the new exclusive commercial license for OneWeb LEO services, but also extend the satellite services to broader use, including the in-flight WiFi services for aviation industry and the applications for maritime industry. Moreover, for the land, we have partnered with NTT to successfully present the world's first cross-border co-performance conducted in both Taiwan and Osaka at the same time through IOWN, the all-photonics network at Expo 2025, demonstrating the ultra-low…

Wen-Hsin Hsu

Analyst

Thank you, President. Good afternoon, everyone. It's my pleasure to present an overview of our financial results for the second quarter of 2025. Let's turn to Slide 12, income statement highlights. I will walk you through the key financial metrics for the second quarter of 2025. During the second quarter in 2025, revenue reached over TWD 56 billion, making the fifth consecutive year of second quarter growth. This represents a 4.8% year-over-year increase of -- driven mainly -- this growth is mainly driven by the expansion of our ICT business and higher sales revenue. Income from operations and net income rose by 5.2% and 3.5% respectively, compared to the same period last year. This performance was supported by growth in our Internet Data Center business, steady increase in Mobile and stronger sales contribution from our subsidiary, Chunghwa Precision Test Tech. Earnings per share increased from TWD 1.27 to TWD 1.31, reflecting consistent profitability and effective cost control. EPS reached their highest levels in 9 years for second quarter period, reflecting the continued strength of our core operations. EBITDA also recorded modest gains during the quarter. EBITDA increased by 3.5% year-over-year, reaching TWD 22.58 billion for this quarter. The growth reflects continued operational efficiency and healthy cash-generating ability across our core business. The EBITDA margin was 39.8%, remaining broadly stable compared to last year. So now looking at the first half of 2025 in Column 5 to Column 8. Revenue grew by 3.2% year-over-year, supported by momentum in our ICT business and strong performance of our subsidiary, Chunghwa Precision Test Tech, which contributed to overall sales growth. Income from operations and net income rose by 5.1% and 3.9%, respectively. These gains were driven by the ongoing growth of our IDC and cloud services, along with steady performance from our subsidiaries. Earnings…

Operator

Operator

[Operator Instructions] Ladies and gentlemen, if there are no further questions, I will turn it back over to President, Lin.

Rong-Shy Lin

Analyst

Okay. Thank you for your participation. See you. Bye-bye.

Operator

Operator

Thank you, President, Lin. And thank you, ladies and gentlemen, for your participation in Chunghwa Telecom's conference. There will be a webcast replay. Please visit www.cht.com.tw/ir under the IR Calendar section. You may now disconnect. Thank you again, and goodbye.