• Revenue: Exceeded $55 billion in Q4 2024, a 5.6% increase year-over-year.
• EPS: Reached TWD 1.16 in Q4 2024, the highest fourth-quarter EPS in 9 years.
• Full-Year Revenue Growth: Increased by 3.1% in 2024 compared to 2023.
• Full-Year EPS: TWD 4.8, marking a seven-year high.
• EBITDA Margin: Stable at 37.6% for the full year 2024.
• Mobile Service Revenue: 1.7% year-over-year increase in Q4 2024; 3% growth for the full year 2024.
• Fixed Broadband Revenue: Increased by 2.9% year-over-year in Q4 2024.
• CBG Revenue: Increased by 2.2% year-over-year in Q4 2024.
• EBG Revenue: Increased by 10.2% year-over-year in Q4 2024.
• ICT Business Revenue: 24.1% year-over-year growth in Q4 2024.
• Cash Flow from Operations: Increased by 6.2% year-over-year in 2024.
• Capital Expenditure: TWD 28.82 billion in 2024, a 6.2% year-over-year decline.
• Free Cash Flow: Increased by 14.9% year-over-year in 2024.
• Subscriber Share: 37.9% of Taiwan's mobile market as of November 2024.
• 5G Subscriber Share: 38.8% as of November 2024.
• Forecast for 2025 Revenue Growth: Expected to grow by 1.2% to 1.6% compared to 2024.
• 2025 CapEx Budget: TWD 32.36 billion.

• Warning! GuruFocus has detected 3 Warning Signs with BOM:532541.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Chunghwa Telecom Co Ltd (NYSE:CHT) reported a seven-year high in revenue and EPS for 2024, driven by robust growth across all business sectors.
• The company maintained its leading position in Taiwan's mobile market with a 37.9% subscriber share and a 38.8% 5G subscriber share.
• Fixed broadband revenue and ARPU increased by 2.9% and 1.7% year-over-year, supported by successful speed upgrade strategies.
• The ICT business saw a 24.1% year-over-year growth, with significant contributions from IDC, cloud, and cybersecurity services.
• Chunghwa Telecom Co Ltd (NYSE:CHT) was included in the Dow Jones Sustainability World Index and Newsweek's list of the world's most trustworthy companies for 2024, highlighting its commitment to sustainability and responsible business growth.

Negative Points

• International business group revenue dipped by 2.3% due to a decline in international voice revenue.
• Despite growth in ICT and mobile services, the enterprise business group's core business performance was relatively flat year-over-year.
• The company faces ongoing challenges with declining mobile voice and fixed voice revenues.
• Operating costs and expenses are expected to rise by 2.4% in 2025, driven by investments in talent and infrastructure, as well as higher electricity costs.
• Non-mobile CapEx is projected to increase by 25.2% in 2025, which may impact financial flexibility if not managed effectively.

Q & A Highlights

Q: Could you elaborate on Chunghwa Telecom's investment in AI and key initiatives for this year? A: Wen-Hsin Hsu, CFO, explained that while specific breakdowns of non-mobile CapEx are not disclosed, the company is committed to leveraging AI for operational enhancement and digital transformation. Initiatives include AI data centers, AI factories, and collaborations with academic institutions and tech companies like NVIDIA to accelerate AI development and deployment.

Q: What is the outlook for the ICT business in 2025? A: Angela Tsai, Assistant VP of Investor Relations, stated that ICT revenue exceeded expectations in 2024, and the focus for 2025 will be on improving project margins and increasing recurring revenue. This strategy is expected to stabilize and enhance overall ICT performance.

Q: Are there plans to improve shareholder returns, such as raising the payout? A: Wen-Hsin Hsu, CFO, emphasized that maximizing shareholder returns is a key objective. The company aims to maintain a consistent dividend policy, and as EPS continues to grow, shareholders can expect a corresponding increase in dividends.

Q: Can you provide more details about the increase in non-mobile CapEx for 2025? A: Wen-Hsin Hsu, CFO, noted that while specific breakdowns are not provided, the increase is mainly allocated to AIDC centers, submarine cables, and satellite projects. The focus is on digital transformation opportunities in AI, cloud computing, and cybersecurity.

Q: What are the growth drivers for the revenue guidance of TWD1.2 billion to TWD1.6 billion in 2025? A: Wen-Hsin Hsu, CFO, highlighted the continuation of strong performance in mobile and ICT segments. The company aims to maintain its leadership in Taiwan's mobile market and capitalize on ICT opportunities, particularly in 5G and broadband services.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.