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Chunghwa Telecom (NYSE: CHT) reported record first-quarter revenue performance for 2026, saying all key financial metrics exceeded its quarterly guidance. Management attributed the results to growth in ICT services, mobile and fixed broadband, as well as handset sales.
President Rong-Shy Lin said first-quarter revenue reached the highest level for any first quarter since 2012, driven mainly by “outstanding ICT revenue growth,” alongside continued strength in mobile and fixed-line operations. The company also announced its 2025 cash dividend per share at TWD 5.2, representing a payout ratio of 104.2%. Lin said Chunghwa plans to further deploy resources toward “pre-6G and AI-related opportunity” in 2026.
Chief Financial Officer Audrey Hsu said consolidated revenue for the first quarter was TWD 59.99 billion, up 7.5% year over year. She cited three drivers: strong ICT momentum; higher sales revenue supported 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% year over year, supported by profitability in 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 said was the highest first-quarter EPS in the past 10 years. EBITDA was TWD 23.3 billion, with an EBITDA margin of 38.85%.
Hsu said operating income, net income, EPS and EBITDA all came in ahead of expectations. She added that revenue growth outpaced the increase in operating expenses, reflecting “improved operating efficiency and disciplined cost management.”
Lin said Chunghwa maintained leadership in Taiwan’s mobile market. Citing regulator data, he said mobile revenue market share rose to 41.1%, described as a historic high, while subscriber share increased to 39.7%. The gains were driven by growth in postpaid subscribers and strong roaming performance.
Chunghwa reported 5G subscriber market share at 39.4%, and 5G penetration among smartphone users at 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, and 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.
Chunghwa said its multiple-play service, integrating 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, supported 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.
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 due to a high comparison base from the prior year.
By category, 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, and 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 due to ongoing digital transformation demand, AI-related value creation, and the company’s use of agentic AI to upgrade services for enterprise customers.
Lin said Chunghwa is continuing a gradual rollout of its 5G standalone network, describing it as necessary for an eventual transition to 6G. The company is using standalone capabilities for select verticals, including unmanned vehicles and autonomous driving, and is expanding deployment in high-traffic areas for commercial demand and major events.
Chunghwa also emphasized its AI strategy. Lin said the company expanded the use of agentic AI following internal generative AI initiatives launched in 2025, highlighting its self-developed CHT AI Factory platform. The platform integrates full-stack solutions, compute power, AI modules, models and agents, and supports enterprise copilots and AI-enabled applications in 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. 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 business expansion and shareholder returns.
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