Key Takeaways
Chunghwa Telecom Co. (NYSE: CHT) reported a 7.5% year-over-year increase in first-quarter revenue to TWD 59.99 billion, its highest Q1 result in a decade, as growth in its enterprise and mobile businesses beat guidance.
"This represents a very positive start to the year," President Rong-Shy Lin said, adding that the company plans to further deploy resources toward “pre-6G and AI-related opportunity” in 2026.
The strong results, driven by a 25% jump in information and communication technology (ICT) revenue, signal that Chunghwa's diversification beyond core telecom services is paying off. The company also announced a 2025 cash dividend of TWD 5.2 per share, representing a payout ratio of 104.2%, rewarding shareholders as it invests in future growth.
The company's enterprise-facing businesses were the primary growth engine. Group ICT revenue increased 25% from the prior year, with order intake hitting a new high of TWD 20 billion. Management cited broad-based demand, with IDC revenue up 29%, cloud revenue rising 43%, and AIoT revenue growing 26%.
Chunghwa highlighted major project wins for network resilience and a large-scale fishery and surveillance system as key contributors to the record order book. The company is also expanding its AI-native services through its self-developed CHT AI Factory platform, which provides enterprise copilots and AI-enabled applications.
Chunghwa's traditional telecom operations continued to show steady growth. The company solidified its market leadership in Taiwan, with its mobile revenue market share reaching a historic high of 41.1%. Mobile service revenue increased 4.4% year over year, while postpaid average revenue per user (ARPU) rose 3.6%.
In the fixed-line business, broadband revenue grew 3% as more customers upgraded to higher-speed fiber plans of 300 Mbps and above. Fixed broadband ARPU increased to TWD 818 per month.
The across-the-board beat and record ICT orders suggest Chunghwa's growth can continue, validating its strategy of expanding into higher-margin enterprise services. Investors will watch to see if the company can maintain its ICT momentum and convert its record order book into sustained revenue growth in the upcoming quarters.
This article is for informational purposes only and does not constitute investment advice.
