Chunghwa Telecom Q2 Profits Surpass Forecasts, EPS Hits 10-Year High at NT$1.38

Chunghwa Telecom (2412-TW) announced its latest financial results today (5th), reporting a second-quarter after-tax net profit of NT$10.64 billion and earnings per share (EPS) of NT$1.38, marking a 10-year high for the same period. The company attributed the strong performance to simultaneous growth in its core telecom business and enterprise customer services.

Chunghwa Telecom's Q2 revenue reached NT$61.36 billion, up 2.28% quarter-on-quarter and 8.16% year-on-year. EBITDA was NT$23.52 billion, up 0.9% QoQ and 4.16% YoY. After-tax net profit was NT$10.64 billion, up 5.24% QoQ and 4.52% YoY, with EPS at NT$1.38. All key metrics—revenue, net profit, and EPS—exceeded the high end of financial forecasts. Revenue hit a 16-year high for the same period, while EPS achieved its best level in 10 years.

For the first half of 2024, cumulative revenue reached NT$121.35 billion, up 7.83% YoY. EBITDA was NT$46.82 billion (up 3.79% YoY), net profit NT$20.75 billion (up 3.91% YoY), and EPS NT$2.68.

General Manager Lin Jung-ts’u stated that robust growth in core telecom operations was the primary driver of Q2 performance. Thanks to continued 5G user upgrades and increased roaming revenue, mobile service market share reached a record 41.2%. The 5G penetration rate among smartphone users rose to 48.8%, driving mobile service revenue up 3.2% YoY.

In fixed broadband, demand for high-speed internet led to a 61% YoY increase in users with speeds above 1Gbps, supporting sustained ARPU growth. Additionally, due to broadcasting rights for the 2026 FIFA World Cup, video subscription numbers peaked, resulting in a 20% YoY increase in video service revenue.

For enterprise customers, ICT revenue grew 32% YoY, driven by big data, cybersecurity, and IDC services. The value of ICT contracts signed in the first half of 2024 has already reached the full-year 2025 target. Moreover, the delivery of large-scale ICT projects in the U.S. and Southeast Asia boosted international telecom group revenue by 79% YoY. Chunghwa Telecom is also expanding its satellite and submarine cable infrastructure, further driving international growth.

Looking ahead, Lin emphasized the company’s long-term AI strategy. The newly launched Lunping AIDC Park is now operational, and in July, Chunghwa signed an MOU with the Taiwan Stock Exchange to plan an AI data center in Taichung. The company aims to strengthen its position as an AI hub by deepening its three core advantages: connectivity, computing power, and AI, supported by IOWM investment initiatives.

The Personal and Home Services segment generated Q2 revenue of NT$35.73 billion, up 4.8% YoY, driven by steady core business growth and strong iPhone sales, which also pushed pre-tax profit up 3.6% YoY.

The Enterprise Customer segment achieved Q2 revenue of NT$19.68 billion (up 3.7% YoY), with pre-tax profit rising 2.1% YoY, supported by strong ICT demand and enterprise mobile projects.

The International Services segment reported Q2 revenue of NT$3.93 billion (up 78.9% YoY) and pre-tax profit up 30.8% YoY, primarily due to the completion of large ICT projects in the U.S. and Southeast Asian markets.

Operating costs for Q2 totaled NT$48.1 billion, up 8.9% YoY, driven by higher costs from increased ICT project and sales revenue, as well as rising personnel expenses.

In mobile services, as of June 2024, subscriber count reached 13.43 million (up 2.3% YoY). Q2 mobile service revenue was NT$17.6 billion (up 3.2% YoY), with ARPU for 090 monthly plans at NT$569 (up 2.4% YoY).

For fixed broadband and internet services, as of June 2024, broadband subscribers totaled 4.47 million (up 0.6% YoY), with HiNet broadband users at 3.82 million (up 0.5% YoY). Q2 fixed broadband revenue was NT$11.97 billion (up 3.3% YoY), and ARPU reached NT$824 (up 2.4% YoY).