Chunghwa Telecom Co., Ltd. (CHT): BCG Matrix [Dec-2025 Updated]

You're looking at Chunghwa Telecom Co., Ltd. (CHT) right now, and honestly, it's a classic telecom story: massive cash generation from old reliable services mixed with huge bets on the future. We've mapped their core businesses onto the BCG Matrix, and the picture is clear: their 5G Mobile Services are clear Stars, fueled by a 38.8% subscriber share, while legacy Fixed Voice is definitely a Dog in a shrinking market. The real action, though, is in the Question Marks, where heavy investment-like the NT$32.36 billion CapEx for AI data centers-is needed to turn high-growth areas like Enterprise ICT (up 14.5% in Q3) into future Cash Cows. Dive in below to see exactly where you should focus your attention on their portfolio.

Background of Chunghwa Telecom Co., Ltd. (CHT)

You're looking at Chunghwa Telecom Co., Ltd. (CHT), which stands as Taiwan's largest telecommunications services provider, offering integrated services across mobile, broadband, and fixed-line communications. As of late 2025, the company is actively pursuing a vision centered on 'Chunghwa AI Ignites the Future,' positioning itself as both an 'Enabler' for computing power and a 'Co-creator' for AI applications across various industries.

Financially, Chunghwa Telecom Co., Ltd. reported a strong performance through the first nine months of 2025. For the nine months ending September 30, 2025, the company posted an operating revenue of NTD 170,463,142 thousand, or about NT$ 170.46 billion, alongside a net profit of NT$ 30,655,286 thousand. This solidifies the momentum seen in the third quarter alone, where total revenue reached NT$ 57.92 billion, marking a 4.2% increase year-over-year (YoY) and exceeding guidance.

Looking at the business segments as of the third quarter of 2025, the Consumer Business Group (CBG) remains the largest revenue contributor, bringing in NT$ 35.18 billion, which was up 2.2% YoY, helped by steady growth in mobile and fixed broadband ARPU, plus higher smartphone sales. The Enterprise Business Group (EBG) showed even stronger percentage growth, with revenue climbing 7.4% YoY to NT$ 18.91 billion, reflecting success in its ICT services. Conversely, the International Business Group saw a slight contraction, with revenue decreasing by 1.9% to NT$ 2.33 billion in Q3 2025.

In terms of core services, as of September 30, 2025, Chunghwa Telecom maintained 13.19 million mobile subscribers, representing a 1.3% YoY increase, with its 5G subscriber share reaching 38.8% of the market. For fixed broadband, the subscriber base stood at 4.45 million (a 0.6% YoY increase), while the average revenue per user (ARPU) for fixed broadband services grew 3.0% YoY to NT$ 810 in the third quarter.

Chunghwa Telecom Co., Ltd. (CHT) - BCG Matrix: Stars

You're analyzing the high-growth, high-market-share segments for Chunghwa Telecom Co., Ltd. (CHT) as of the latest available 2025 figures. These are the areas where the company is leading a growing market, which means they require significant investment to maintain that lead, but they are positioned to become future Cash Cows.

The 5G Mobile Services segment clearly fits the Star profile, showing market leadership in a market that is still expanding rapidly. This leadership demands continued capital expenditure to ensure network superiority and customer retention.

Here's a quick look at the key performance indicators defining these Star businesses based on the Q3 2025 results:

The transition to 5G is the primary driver for value realization in the mobile segment. The uplift in customer spending validates the premium positioning of these faster services.

• 5G subscriber share reached 38.8% as of Q3 2025.
• Mobile service revenue increased 3.3% year-over-year in Q3 2025.
• The average monthly fee uplift from 5G migration is holding steady at approximately 40%.
• Postpaid Average Monthly Revenue Per User (ARPU) excluding IoT SIMs grew to NT$562 in Q3 2025, a 1.8% year-over-year increase.

For High-Speed Fixed Broadband, the focus is on successful cross-tier upgrades, which directly translates to higher revenue per user. This segment is capturing growth as customers demand more capacity.

The data shows tangible success in moving customers to premium tiers:

• Fixed broadband revenue grew 3.2% to NT$11.68 billion in Q3 2025.
• Fixed broadband ARPU increased by NT$23 per month year-over-year, representing a 3.0% increase, reaching NT$810 in Q3 2025.
• Subscribers choosing speed of 300 megabits per second and above increased by about 14% year-over-year.
• Subscribers opting for 500 megabits per second and above recorded a double-digit growth.
• Subscribers for 1 gigabit per second and above achieved 'multiple for expansion' in Q3 2025.

Sustaining this success means Chunghwa Telecom Co., Ltd. (CHT) must continue heavy investment, as these Stars consume significant cash to fund network expansion and market promotion to fend off competitors.

Chunghwa Telecom Co., Ltd. (CHT) - BCG Matrix: Cash Cows

You're analyzing Chunghwa Telecom Co., Ltd. (CHT)'s established businesses, the ones that print money year after year. These are your Cash Cows; they have a strong grip on mature markets and fund everything else.

Traditional Fixed Broadband/HiNet represents a classic Cash Cow. It holds a dominant market share, specifically cited at 55.8% of subscribers, within a stable, mature core market. This position allows for efficient operation and strong cash generation, even with lower promotional spend.

The financial performance in the third quarter of 2025 clearly shows this strength. Core Fixed Broadband Revenue for Q3 2025 was a steady NT$11.68 billion, marking a 3.2% year-over-year growth. The Average Revenue Per User (ARPU) for this segment also saw a healthy increase, rising 3.0% to NT$810 per month in Q3 2025. This ARPU increase, driven by migration to higher-speed packages, is exactly what you want to see in a mature cash generator.

The Legacy Postpaid Mobile base also functions as a reliable cash engine. As of September 30, 2025, Chunghwa Telecom Co., Ltd. maintained a massive mobile subscriber base of 13.19 million total mobile subscribers, up 1.3% year-on-year. While the overall mobile segment is growing (Q3 2025 mobile service revenue was NT$17.31 billion, up 3.3%), the underlying postpaid base provides the consistent, predictable cash flow required to cover corporate overheads and debt service. The postpaid ARPU, excluding IoT SIMs, was NT$562 in Q3 2025.

Overall, the company's guidance reflects the stability these units provide. The projected 2025 total consolidated revenue guidance is high, set between NT$232.74 billion and NT$233.74 billion. For context, the actual Q3 2025 consolidated revenue already hit NT$57.92 billion, exceeding the high-end of internal guidance for the quarter.

Here's a quick look at the key Cash Cow metrics from Q3 2025:

To maintain this cash flow, the strategy for these units is focused on efficiency and incremental upgrades, not massive spending:

• Invest to maintain current productivity levels.
• Focus promotion and placement investments low.
• Support infrastructure to boost efficiency, like high-speed migration.
• The goal is to 'milk' the gains passively.

Chunghwa Telecom Co., Ltd. (CHT) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Dogs are in low growth markets and have low market share. Dogs should be avoided and minimized. Expensive turn-around plans usually do not help.

The Fixed Voice Services segment at Chunghwa Telecom Co., Ltd. (CHT) clearly fits the profile of a Dog, characterized by a mature, declining market despite maintaining a near-monopoly position in terms of subscriber base.

Fixed Voice Services (Local/DLD)

• Highly dominant market share, reported at ~91.4% for local subscribers.
• The market itself is in a structural, multi-year decline, meaning market share dominance does not translate to growth.
• As of June 30^th, 2025, Chunghwa Telecom Co., Ltd. (CHT) still held 8.77 million fixed-line subscribers.

Local Telephone Revenue Contribution

The financial contribution from this legacy service continues to shrink as a proportion of the overall business. For the full year 2024, Chunghwa Telecom Co., Ltd. (CHT)'s total consolidated revenue was NT$ 230.03 billion. Against this backdrop, the revenue share from Local Telephone Revenue fell to 8.7% in 2024, a trend that has persisted over several years.

International Fixed Voice Performance

The International Fixed Voice component, another legacy offering, shows explicit revenue contraction, confirming the low-growth/declining market characteristic of a Dog. The decline is directly attributed to reduced demand for these fixed voice services.

The International Business Group revenue saw a significant drop in Q2 2025, decreasing by 16.8% to NT$ 2.20 billion. This downward trend continued, albeit at a slower pace, into the third quarter of 2025, with revenue decreasing by 1.9% to NT$ 2.33 billion.

Legacy Equipment/Infrastructure Burden

The need to maintain older, non-growth-driving assets ties up capital that could be deployed to Stars or Question Marks. This includes older 4G and copper-based infrastructure. Chunghwa Telecom Co., Ltd. (CHT)'s 2025 guidance reflects necessary, but non-growth-oriented, spending:

• Anticipated Acquisition of Property, Plant and Equipment for 2025 is projected to be NT$32.36 billion.
• This 2025 CapEx includes spending for the elimination of energy-intensive equipment to realize ESG practices, which points to decommissioning older assets.
• Total Operating Costs and Expenses for 2025 are expected to rise by 2.4% to NT$187.58 to NT$187.65 billion.

Chunghwa Telecom Co., Ltd. (CHT) - BCG Matrix: Question Marks

You're looking at the high-growth, low-market-share bets Chunghwa Telecom Co., Ltd. (CHT) is making right now. These are the areas consuming cash with the hope they turn into tomorrow's Stars. Honestly, they need to capture market share fast or they risk becoming Dogs.

The Enterprise Business Group (EBG) is where a lot of this action is happening. In the third quarter of 2025, EBG revenue hit NT$ 18.91 billion, up 7.4% year-over-year. But the real engine here is the ICT business, which saw its revenue jump by 14.5% year-over-year. Still, the income before tax for the whole EBG actually fell by 5.1% year-over-year for the quarter, which shows you the investment pressure these growth areas are under.

Here's a quick look at the growth drivers within the ICT segment for Q3 2025, which are classic Question Marks:

• Internet Data Center (IDC) revenue growth: 34% year-over-year.
• Cloud service revenue growth: 24% year-over-year.
• Cybersecurity revenue growth: 19% year-over-year.
• Big Data services surge: 130% year-over-year, largely from the National Taxation System project.

The capital allocation for these future bets is defintely significant. Chunghwa Telecom Co., Ltd. (CHT) has budgeted a total capital expenditure (CapEx) for Property, Plant and Equipment in 2025 of NT$32.36 billion. This massive outlay is specifically earmarked to fuel the expansion of AI internet data centers and new submarine cable construction.

You can see the strategic shift in the CapEx plan:

The International Business Group (IBG) represents another area with high potential but currently low, volatile returns. For the third quarter of 2025, IBG revenue was NT$ 2.33 billion, which was a 1.9% decrease year-over-year. The income before tax for IBG was even more volatile, dropping by 19.7% YoY, mainly due to softened demand for international fixed voice services.

However, the international footprint shows pockets of high growth that justify the Question Mark status. For instance, the US subsidiary achieved 70% year-over-year revenue growth in Q3 2025, driven by AIDC construction projects for a high-tech company in Texas. This suggests that targeted international ICT solutions are performing well, even if the overall IBG number is dragged down by legacy services.

Here's the segment performance comparison for Q3 2025:

• Consumer Business Group (CBG) Revenue: NT$ 35.18 billion (up 2.2% YoY).
• Enterprise Business Group (EBG) Revenue: NT$ 18.91 billion (up 7.4% YoY).
• International Business Group (IBG) Revenue: NT$ 2.33 billion (down 1.9% YoY).

Finance: draft 13-week cash view by Friday.