Key Highlights

● Consolidated revenue rose 8.2% to NT$61.36 billion in the second quarter.

● Operating income was NT$13.26 billion, up 5.7%, and EBITDA reached NT$23.52 billion.

● Enterprise ICT revenue increased 32%, and ICT order intake rose 30%.

● The Lunping data center began operating and could add up to 36 MW.

Chunghwa Telecom (NYSE:CHT) is a major Taiwanese telecommunications group providing mobile, fixed-line broadband, enterprise information and communications technology (ICT) and over-the-top video services. The US security is an American depositary share (ADS) listed on the New York Stock Exchange under the symbol CHT since July 2003. According to the company's 2025 annual report on Form 20-F, each ADS represents ten common shares, which trade in Taiwan in New Taiwan dollars (TWD). The Republic of China government, through the Ministry of Transportation and Communications, held about 35.29% of the common shares at the end of 2025. The S&P 500 offers a US large-cap reference point for a company of this scale.

Second-quarter 2026 results

Chunghwa Telecom reported second-quarter 2026 results on August 5, 2026. Consolidated revenue rose 8.2% to NT$61.36 billion, the highest second-quarter figure since 2010. Operating income was NT$13.26 billion, up 5.7%, and EBITDA was NT$23.52 billion, up 4.1%. Quarterly net income was NT$10.64 billion, up 4.7%, while earnings per common share were NT$1.38, compared with NT$1.31. First-half net income grew 3.9% to NT$20.75 billion, with earnings per share of NT$2.68, against NT$2.57.

Mobile service revenue grew 3.2% to NT$17.60 billion, and fixed broadband revenue rose 3.3% to NT$11.97 billion. Enterprise ICT revenue increased 32%, and the company reported that ICT order intake rose 30%.

AI infrastructure and capital spending

Management said second-quarter results exceeded the high end of its guidance and that first-half performance supports its full-year targets. First-half capital expenditure was NT$9.85 billion, down 14.3% as mobile network investment normalized, and the company expects a larger share of annual spending in the second half. Its Lunping data center in Taoyuan began operating on the day of the results call and could add up to 36 MW of capacity. In July the company also signed a memorandum of understanding with the Taiwan Stock Exchange for colocation capacity at a Taichung AI data center that is still under construction.

Dividend and ADS ratio

For 2025, the board approved on February 26, 2026 a cash dividend of NT$5.2 per common share, totaling about NT$40.34 billion, with no stock dividend. Basic earnings per share for 2025 were NT$4.99, so the distribution exceeded annual earnings per share, a payout of about 104%, the figure cited in the 20-F.

Each ADS represents ten common shares, so the dividend works out to a gross NT$52 per ADS before fees and withholding tax. Dividends are paid in Taiwan dollars, so US dollar receipts depend on exchange rates; the 20-F used NT$31.37 per US dollar at the end of 2025.

Payout Above Earnings and Mobile Competition

A payout above earnings is sustainable only if cash flow and the balance sheet allow it. The adjusted debt ratio, which excludes dividends payable, was 23.72% at June 30, 2026, down from 25.21% at the end of 2025. Other risks include competition in Taiwan's mobile market, where Chunghwa Telecom held a 41.2% revenue share, regulatory decisions, government ownership, currency movements and the pace of returns on AI infrastructure investment.