Chunghwa Telecom (2412) investor relations material

Executive summary

• Q2 2026 and H1 2026 delivered record revenue, operating income, net income, and EPS, all exceeding the high end of guidance, with Q2 revenue at NT$61.36 billion, the highest since 2010.

• Strategic achievements included the launch and expansion of AI data centers, scaling the IOWN ecosystem, and new AI semiconductor and supply chain initiatives.

• ESG recognitions included CDP's Top A-List, sustainable finance awards, and significant greenhouse gas emission reductions.

• Gross margin remained stable at 38%, with operating income and EPS at decade highs.

• Major capital expenditures supported AI, 5G, and digital infrastructure investments.

Financial highlights

• Q2 2026 revenue rose 8.2% year-over-year to NT$61.36 billion; H1 2026 revenue up 7.8% to NT$121.35 billion.

• Q2 net income increased 4.7% to NT$10.64 billion; H1 net income up 5.2% to NT$21.87 billion.

• EBITDA for Q2 grew 4.1% to NT$23.52 billion, with an EBITDA margin of 38.32%.

• Free cash flow for H1 was NT$21.89 billion, up 23.1% year-over-year.

• Cash and cash equivalents increased to NT$42.22 billion as of June 30, 2026.

Outlook and guidance

• Management is confident in achieving full-year targets, supported by strong H1 outperformance and robust ICT order intake.

• Continued growth expected in AI infrastructure, international connectivity, and data center services, especially in the U.S. and Southeast Asia.

• Ongoing investments in AI, 5G, and digital transformation are expected to support future revenue and margin growth.

• Further CapEx deployment anticipated in H2 2026.

• No material impact from new accounting standards anticipated.