Q3 Results Beat High End of Guidance
Chunghwa Telecom reported its consolidated operating results for Q3 2026, with revenue of NT$67.59 billion, up 16.7% YoY; operating income of NT$15.38 billion, up 27.1% YoY; EBITDA of NT$25.66 billion, up 16.1% YoY; and net income attributable to parent company of NT$12.22 billion, up 29.5% YoY, with EPS of NT$1.57. Operating revenue, operating income, net income and EPS all exceeded the high end of guidance and hit record highs for the same period since 2009. Chairman Chien Chih-cheng noted steady growth in core businesses, with ICT revenue hitting a record high for the same period since 2021, plus a one-time gain from asset value revitalization, demonstrating the成效 of its strategic布局.
Steady Growth in Core and Enterprise Businesses
President Lin Rong-ci said core telecom businesses maintained their leading position in Taiwan's mobile and fixed broadband markets. Driven by nearly 50% 5G penetration among smartphone users and roaming revenue growth, overall mobile service revenue grew 2.9% YoY; fixed broadband benefited from high-speed service demand, with subscribers of 1Gbps and above up 52% YoY. The Enterprise Business Group was the growth engine, with group ICT revenue up 19% YoY and newly signed ICT orders in Q3 up 84% YoY. Network resilience businesses also grew, with international circuit revenue up 33% YoY on submarine cable system contributions and satellite-related revenue up 9.8% YoY, with satellite contract value secured through Q3 exceeding NT$250 million.
Performance by Business Group and Costs
The Personal and Home Business Group posted Q3 revenue of NT$37.38 billion, up 6.3% YoY, driven by mobile services, fixed broadband and strong handset sales, with pre-tax profit up 1.4% YoY. The Enterprise Business Group posted revenue of NT$20.46 billion, up 8.2% YoY on ICT and mobile-fixed growth, while pre-tax profit fell 3.1% YoY due to higher ICT costs, seasonal personnel expenses and talent retention investment. The International Business Group posted revenue of NT$2.48 billion, up 6.6% YoY, with pre-tax profit up 12.2% YoY. Total costs and expenses in Q3 were NT$52.21 billion, up 14% YoY, mainly due to asset revitalization-related costs, ICT project and merchandise costs, and personnel expenses; operating margin was 22.65%, above 20.89% in the prior year.
Subscribers, Cash Flow and Outlook
As of end-September, mobile subscribers totaled 13.51 million, up 2.5% YoY, with Q3 mobile service revenue of NT$17.8 billion, up 2.9% YoY, and postpaid ARPU of NT$573, up 2% YoY. Broadband subscribers totaled 4.48 million, up 0.7% YoY, with HiNet at 3.84 million, up 1.5% YoY, fixed broadband revenue of NT$12.04 billion, up 3% YoY, ARPU of NT$822, up 1.6% YoY, and city telephone subscribers of 8.44 million. Net cash flow from operating activities at end-September was NT$49.84 billion, up 9.6% YoY, with cash and cash equivalents of NT$32.52 billion, up 38.2% YoY, and EBITDA margin of 37.97%. The company will accelerate its AI strategy, deepen cooperation with Google, and expand enterprise AI and smart city布局 through Chunghwa Innovation and the newly established Chunghwa Yaozhi.