Chunghwa Telecom (NYSE:CHT) reported fourth quarter and full-year 2025 results that management said exceeded the upper end of the company’s guidance, citing strength in core telecom services and continued expansion in ICT-related businesses.
President Rong-Shy Lin said 2025 revenue, operating income, income before tax, and earnings per share all came in above the high end of guidance. He highlighted full-year revenue reaching an “all-time high” and full-year EPS of TWD 4.99 as an “8-year high,” marking the sixth consecutive year of annual growth momentum.
Fourth quarter results and full-year performance
Fourth quarter income from operations fell 2.2% year-over-year, which Hsu said was primarily due to one-off impairment losses related to the 3G network sunset, as well as a higher comparative base from an investment property valuation gain in the prior year. Income before tax rose 2.1%, driven by investment disposal gains recorded in non-operating income. EPS increased to TWD 1.20 from TWD 1.16, which Hsu described as the highest fourth quarter EPS in 10 years. EBITDA was TWD 21.55 billion and the EBITDA margin was 32.82%.
For the full year 2025, Hsu said revenue increased 2.7% year-over-year to TWD 236.11 billion. She described growth as broad-based, pointing to higher mobile handset volumes and the performance of subsidiary Chunghwa Precision Tests in semiconductor testing, along with continued ICT contributions and steady performance in mobile service and fixed broadband. Income from operations rose 3.6% and net income increased 4%, driving full-year EPS to TWD 4.99 versus TWD 4.8 a year earlier. Full-year EBITDA increased 2.6% to TWD 88.77 billion, with an EBITDA margin of 37.6%.
Mobile and fixed broadband trends
Lin said Chunghwa maintained market leadership in Taiwan’s mobile sector in 2025, citing regulator data showing mobile revenue market share at 41% and subscriber market share at 39.7%, supported by growth in postpaid subscribers. He also pointed to 5G progress, with 5G subscriber market share reaching 39.2% and 5G penetration among smartphone users at 46.4% by the end of 2025. Lin said the average monthly fee uplift from 5G migration remained at 41%.
On fixed broadband, management reported ARPU continuing to rise, reaching NT$819 per month, up 3.8% year-over-year, while subscribers increased 0.5%. Lin said the result was driven by high-speed upgrade promotions and MOD bundle packages. He also cited higher-speed adoption trends, including 13% year-over-year growth in subscribers using 300 Mbps and above, double-digit growth in 500 Mbps and above, and a doubling of 1 Gbps and above subscriptions in the fourth quarter.
Consumer services and enterprise ICT updates
In consumer application services, Lin said multiple-play packages integrating mobile, fixed broadband, and Wi-Fi rose 17% year-over-year in the fourth quarter, marking the 16th consecutive quarter of expansion. He noted that in 2025, overall subscriptions declined due to the absence of major global sports broadcasting, but Hami Video’s ARPU increased by more than 25% year-over-year in the fourth quarter. Lin said the company expects additional revenue momentum in 2026, citing a Disney+ bundle launched in January, an ongoing partnership with Netflix, and an upcoming slate of sports events including the FIFA World Cup and Asian Games.
In enterprise ICT, management said group ICT revenue declined 6% year-over-year in the fourth quarter due to a higher comparison base, although full-year ICT revenue still grew year-over-year. Lin emphasized recurring ICT revenue growth of 15% year-over-year, supported by AIoT, IDC, and international public cloud services.
Management discussed mixed performance across ICT categories in the quarter:
- IDC, big data, and 5G private network revenue rose 19%, 3%, and 88% year-over-year, respectively, with the 5G private network increase attributed to project revenue recognition across public and private sector customers.
- Cloud and AIDC revenue declined 16% and 27% year-over-year due to a high base in the prior year.
- Cybersecurity revenue declined 16% year-over-year because most 2025 cybersecurity revenue had been recognized in the first three quarters, though management said both cloud services and cybersecurity still delivered full-year revenue growth.
Lin also highlighted several project wins mentioned on the call, including an AI customer service solution for what he described as the first integrated AI customer service system for a leading company in Taiwan, and a government system integration project to upgrade the labor insurance platform with a contract value exceeding TWD 3 billion. He added that Chunghwa incorporated satellite services into a government joint procurement contract framework and secured additional correctional institution remote surveillance projects in the quarter totaling nearly TWD 150 million in contract value.
International business and network investments
Management said international subsidiary revenue fell 7% year-over-year in the fourth quarter, citing softer demand for voice services and a higher comparison base in the U.S. and Japan ICT markets. Lin said South Asia and Southeast Asia revenue increased 12% year-over-year following construction projects in Singapore and Thailand that are expected to continue through 2026. He also noted the Malaysia subsidiary began operations in December 2025 to support ICT integration services in the region.
Looking to 2026, Lin said the company had secured several AI supply chain projects in the U.S. pipeline, including projects in Texas and California, which he said are expected to boost U.S. market performance in 2026.
Within the International Business Group (IBG), Lin said fourth quarter revenue declined 2.5% year-over-year while income before tax increased 1.8%, driven by higher international IDC demand and stronger roaming revenue. He added that the SJC2 submarine cable and the first phase of Apricot were completed in the quarter, contributing to 2.2% year-over-year growth in IBG fixed line services revenue.
2026 guidance, CapEx priorities, and cost drivers
Hsu said 2026 revenue is expected to grow about 2% year-over-year, with operating costs and expenses projected to increase 3.5% to 3.7% as the company invests in talent and infrastructure. The company guided to EPS of NT$4.82 to NT$5.02 for 2026 and budgeted TWD 31.91 billion in capital spending.
Management said mobile-related CapEx is expected to decrease 6.3% year-over-year, marking the fifth consecutive annual decline since the 2021 peak, reflecting that the company has moved beyond the heaviest phase of 5G construction. On the Q&A, management added that 2026 mobile CapEx will include investments in standalone (SA) related applications such as network slicing, while still coming in below 2025 levels.
Non-mobile CapEx is expected to increase, aligned with Chunghwa’s “sea, land, sky” strategy. In response to an analyst question on the increase in non-mobile CapEx, management cited fixed line maintenance, satellite and cables, and IDC as key categories, and said the increase was mainly driven by IDC and satellite. Management did not provide a detailed category-by-category breakdown.
On cost inflation versus revenue growth, management pointed to higher human resources investment—particularly AI-related talent needs for emerging areas such as IDC—as well as electricity costs amid uncertainty around Taiwan’s electricity policy. Management also mentioned depreciation and amortization as additional cost factors.
Separately, Lin said the company secured 4.6 billion kWh of renewable energy through a 20-year corporate power purchase agreement to support its 2045 net zero commitment, and highlighted awards received during the quarter, including recognition related to corporate sustainability and AI innovation.
About Chunghwa Telecom (NYSE:CHT)
Chunghwa Telecom Co, Ltd. is the largest integrated telecommunications service provider in Taiwan, serving both consumer and enterprise customers across the island and through international telecommunications links. The company offers a full range of voice, data and multimedia services and operates as the incumbent fixed-line operator while also competing in mobile, broadband and enterprise markets. Its network footprint and traffic interchange capabilities support domestic communications and cross-border connectivity for carriers and multinational businesses.
Chunghwa Telecom’s product and service portfolio includes fixed-line telephony, mobile services (including 4G and 5G wireless access), broadband internet (DSL and fiber-to-the-home), and IPTV.
