Senator Ron Wyden has brought attention to significant lapses in compliance by major telecommunication companies, including Chunghwa Telecom (CHT, Financial), regarding government surveillance notifications. In a communication to fellow Senate members, Wyden highlighted how these companies failed to inform senators about surveillance requests for data on government-issued devices. The investigation revealed that none of the telecommunication providers involved, including CHT, had implemented a system to notify senators when law enforcement agencies sought their records. This deficiency points to a critical gap in the obligation of phone service providers to alert officials about such surveillance activities.
CHT Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Chunghwa Telecom Co Ltd (CHT, Financial) reported a 4.3% year-over-year increase in net income and EPS for the first quarter of 2025.
- The company maintained its leading position in Taiwan's mobile market with a revenue share of 40.5% and a subscriber share of 39.1%.
- Chunghwa Telecom's 5G market share reached 38.7%, contributing to a 42% increase in the average monthly fee uplift from 5G migration.
- The fixed broadband business saw a 2.5% increase in revenue and a 2.1% increase in ARPU year-over-year, driven by subscriber upgrades to higher speed tiers.
- The enterprise ICT business experienced a 13% year-over-year revenue increase, with significant growth in cybersecurity, IDC, and cloud services.
Negative Points
- Despite overall growth, Chunghwa Telecom Co Ltd (CHT) faced a 3.8% year-over-year decrease in income before tax from its EBG fixed voice revenue.
- Cash flows from operating activities decreased by 8.6% year-over-year due to higher settlements of accounts payable.
- Free cash flow declined by 17.4% year-over-year, attributed to increased capital expenditures for 5G and 4G equipment deployment.
- Property, plant, and equipment declined by 1.1% as depreciation expense exceeded net additions of fixed assets.
- The company experienced a reduction in accounts payable, contributing to a 5.5% decrease in total liabilities.
