Chunghwa Telecom NYSE: CHT reported a record first-quarter revenue performance for 2026 and said all key financial metrics exceeded its quarterly guidance, as growth in ICT services, mobile, fixed broadband and handset sales supported results.
President Rong-Shy Lin said the company’s first-quarter revenue reached its highest level for any first quarter since 2012, driven mainly by “outstanding ICT revenue growth,” alongside continued strength in mobile and fixed-line operations. Chunghwa also announced that its 2025 cash dividend per share is set at TWD 5.2, representing a payout ratio of 104.2%.
“This represents a very positive start to the year,” Lin said, adding that the company plans to further deploy resources toward “pre-6G and AI-related opportunity” in 2026.
Revenue Rises 7.5% as Earnings Top Guidance
Chief Financial Officer Audrey Hsu said consolidated revenue for the first quarter was TWD 59.99 billion, up 7.5% year over year. She attributed the increase to three main factors: strong ICT momentum, higher sales revenue driven by handset demand and contributions from subsidiaries including Chunghwa Precision Test Tech, and stable performance in core telecom services such as mobile, broadband and data.
Income from operations rose 4.6% from a year earlier, supported by the profitability of core telecom operations, subsidiary contributions, higher-value integrated projects, and scaling in IDC and cloud operations. Earnings per share increased to TWD 1.30 from TWD 1.26, which Hsu described as the company’s highest first-quarter EPS in the past 10 years. EBITDA was TWD 23.3 billion, with an EBITDA margin of 38.85%.
Hsu said all key profitability metrics, including operating income, net income, EPS and EBITDA, came in ahead of expectations. She also said revenue growth outpaced the increase in operating expenses, reflecting “improved operating efficiency and disciplined cost management.”
Mobile and Broadband Businesses Continue to Grow
Lin said Chunghwa maintained its leadership in Taiwan’s mobile market. According to regulator data cited by the company, mobile revenue market share rose to 41.1%, which Lin called a historic high, while subscriber share increased to 39.7%. The gains were driven by growth in postpaid subscribers and strong roaming performance.
Chunghwa’s 5G subscriber market share reached 39.4%, and 5G penetration among smartphone users increased to nearly 48% by March. The average monthly fee uplift from 5G migration was 36%, which Lin said was slightly lower due to a one-time factor. Mobile service revenue increased 4.4% year over year, while postpaid ARPU rose 3.6%, or TWD 20.
In fixed broadband, Chunghwa said subscribers using speeds of 300 Mbps and above reached 40% of the total fixed broadband subscriber base. Fixed broadband revenue increased 3% year over year, and ARPU rose TWD 20 to TWD 818 per month. Lin said the company will continue promoting higher-speed offerings, including 500 Mbps and 1 Gbps services, to improve customer mix and drive additional ARPU.
Consumer Services Gain Subscribers Around Sports Content
Chunghwa highlighted growth in several consumer offerings. Its multiple-play service, which integrates mobile, fixed broadband and Wi-Fi, surpassed 1 million subscriptions in the quarter, up 15% year over year. Wi-Fi penetration among fixed broadband subscribers reached 55%.
The company also reported stronger video subscriber growth, aided by interest in the 2026 World Baseball Classic. Total video subscribers across MOD and Hami Video rose 6% quarter over quarter and exceeded 3 million. Hami Video ARPU posted double-digit year-over-year growth. Lin said Chunghwa plans to build on user engagement around upcoming sports events, including the FIFA World Cup in the second quarter and the Asian Games in the third quarter.
Consumer cybersecurity services remained above 1 million subscribers, and transaction users for direct carrier billing services also exceeded 1 million during the quarter.
ICT Orders Reach TWD 20 Billion
Chunghwa’s group ICT revenue increased 25% year over year in the first quarter, while recurring ICT revenue grew 11%. Lin said growth was broad across major services, particularly cybersecurity, IDC and international public cloud services, though cybersecurity revenue declined because of a high comparison base from the prior year.
Among key ICT categories, IDC revenue increased 29%, cloud revenue rose 43%, and AIoT revenue grew 26%. Lin said IDC revenue benefited from installation projects for manufacturing companies, cloud revenue was supported by government taxation projects, and smart environment solutions continued to contribute to AIoT growth. Big data service revenue rose 8%, while 5G private network services revenue surged due to project revenue recognition from domestic and international public sectors.
ICT order intake reached a new high of TWD 20 billion, led by network resilience projects and a large follow-on project for a national fishery and surveillance system. Lin said the smart surveillance project value exceeded TWD 1 billion. He also cited Chunghwa’s AI traffic flow identification and analysis technologies as supporting smart transportation project wins.
In response to an analyst question about the sustainability of ICT growth, management said it remains confident in the outlook due to ongoing digital transformation demand, AI-related value creation and the company’s use of agentic AI to upgrade services for enterprise customers.
AI, Network Resilience and International Growth Remain Priorities
Lin said Chunghwa is continuing a gradual rollout of its 5G standalone network, describing the deployment as necessary for an eventual transition to 6G. The company is using standalone network capabilities for select verticals, including unmanned vehicles and autonomous driving, and is expanding deployment in high-traffic areas for commercial demand and major events.
The company also emphasized its AI strategy. Lin said Chunghwa has expanded the use of agentic AI following internal generative AI initiatives launched in 2025. He highlighted the company’s self-developed CHT AI Factory platform, which integrates full-stack solutions, compute power, AI modules, models and agents. Chunghwa said the platform supports enterprise copilots and AI-enabled applications in areas such as smart home ecosystems and smart manufacturing.
International subsidiary revenue increased 20% year over year, led by ICT project deliveries in the U.S. and Southeast Asia. U.S. revenue rose 89% due to large-scale AI supply chain projects, while Southeast Asia revenue grew 16% from phased construction work at a key customer facility in Singapore. Satellite service revenue increased 16%, and international private leased circuit revenue rose 6%.
Hsu said first-quarter capital expenditures totaled TWD 4.55 billion, down 15.9% year over year. Mobile CapEx declined 24.4% as the company moves beyond the peak of its 5G deployment cycle, while non-mobile CapEx decreased 12.8% against a higher prior-year base. In the Q&A, management said 2026 non-mobile investment includes IDC and AI data center construction, undersea cable investments, network resilience, lifecycle management and capacity expansion for AIoT and 5G traffic.
The company ended the quarter with free cash flow of TWD 6.65 billion and a net debt-to-EBITDA ratio of zero. Hsu said Chunghwa’s cash generation continues to support both business expansion and shareholder returns.
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.
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