Chunghwa Telecom Q4 Revenue Beats by 16%, Operating Income Slides 2.2%
Chunghwa Telecom’s Q4 revenue rose 0.5% to NT$65.65 billion (approx. $2.1 billion), exceeding analyst forecasts by 16% as Consumer segment sales climbed 5.9% to NT$39.54 billion. Operating costs rose 0.7% to NT$54.15 billion, reducing operating income 2.2% to NT$11.38 billion, while debt-to-equity remained 0.10 and current ratio at 1.50.
1. Revenue Outperforms Analyst Estimates
Chunghwa Telecom reported fourth-quarter revenue of approximately $2.1 billion, surpassing consensus forecasts of $1.8 billion by 17%. On a Taiwan-IFRS consolidated basis, total revenue rose 0.5% year-over-year to NT$65.65 billion. The Consumer Business Group drove this outperformance, posting a 5.9% increase to NT$39.54 billion, underpinned by robust 5G adoption and a record high broadband ARPU. International operations contributed a 2.5% gain to NT$2.56 billion, while the Enterprise Business Group saw a 7.9% decline to NT$22.02 billion as several large ICT projects rolled over into prior quarters.
2. Operating Income and EBITDA Trends
Despite higher top-line receipts, total operating costs and expenses edged up 0.7% to NT$54.15 billion, reflecting increased manpower and sales expenditures. As a result, operating income declined 2.2% year-over-year to NT$11.38 billion, with operating margin contracting to 17.3% from 17.8% a year earlier. EBITDA remained largely stable, dipping 0.2% to NT$21.55 billion and delivering a margin of 32.8%. Net income attributable to shareholders rose 3.2% to NT$9.29 billion, translating into basic EPS of NT$1.20, a ten-year quarterly high.
3. Robust Financial Health and Liquidity
CHT’s balance sheet remains solid, with a low debt-to-equity ratio of 0.10 and a current ratio of 1.50, indicating comfortable liquidity. Cash and equivalents climbed 2.3% year-over-year to NT$37.09 billion as of December 31, 2025, while operating cash flow reached NT$77.50 billion. The company’s P/E ratio stands near 27.3, and its P/S ratio is approximately 4.3, reflecting investor confidence in sustained earnings growth and cash generation.
4. 2026 Guidance and Growth Initiatives
For full-year 2026, management forecasts revenue growth of 2.5%–3.2%, targeting NT$241.99 billion to NT$243.68 billion, supported by expansion in AIoT, satellite services and pre-6G applications. Operating costs are projected to rise 3.5%–3.7%, with operating income expected to range from NT$48.14 billion to NT$49.66 billion. The planned deployment of an additional Astranis satellite in H2 2026 and multi-layer satellite network enhancements aim to drive billion-dollar-level top-line contributions. A 20-year green power purchase agreement securing 4.6 billion kWh underscores CHT’s commitment to its 2045 net-zero roadmap.