Taipei, November 4th / PRNewswire / -- China Telecom Corporation Limited (Tel: TAIEX, Website: NYSE) ("China Telecom" or "the Company") today announced its unaudited financial results for the third quarter of 2026. All data are prepared in accordance with Taiwan International Financial Reporting Standards ("T-IFRSs") and are presented on a consolidated basis.

Unless otherwise specified, all comparisons below are made compared to the same period of the previous year.

2026 Third Quarter Financial Summary

• Total revenue increased by 16.7% year-on-year to NT$67.59 billion.
• The revenue of the Consumer Business Group increased by 6.3% year-on-year, reaching NT$37.38 billion.
• The revenue of the corporate business group increased by 8.2% year-on-year, reaching NT$20.46 billion.
• The revenue of the International Business Group increased by 6.6% year-on-year, reaching NT$2.48 billion.
• Total operating costs and expenses increased by 14.0% year-on-year to NT$52.21 billion.
• Operating profit increased by 27.1% year-on-year to NT$15.38 billion.
• EBITDA increased by 16.1% year-on-year to NT$25.66 billion.
• The net profit attributable to the shareholders of the parent company increased by 29.5% year-on-year, reaching NT$12.22 billion.
• The basic earnings per share ( EPS ) are NT$1.57.
• Total revenue, operating profit, net profit attributable to shareholders of the parent company, and EPS all exceeded the upper limits of the quarterly guidance.

Jian Zhicheng, Chairman and CEO of China Telecom, stated: "We are delighted to report a remarkable third quarter, with performance exceeding our guidance targets. Revenue, profits, and EPS all reached their highest levels for any third quarter since 2009. Our core telecommunications business remained robust, and ICT revenue reached its highest level for a third quarter since 2021. In addition, our efforts to activate assets brought one-time gains to profits, further demonstrating the effectiveness of our strategy. With such strong performance, we are confident of achieving our annual guidance targets."

Lin Rongci, President of China Telecom, stated: "Our core telecommunications business is an important part of this performance. We continue to maintain a leading position in the mobile and fixed broadband markets in Taiwan, with market share ahead of our competitors in all mobile indicators. Driven by this, mobile service revenue increased by 2.9% year-on-year, the penetration rate of 5G smartphones is close to 50%, and roaming services are also stronger. At the same time, driven by the increasing demand for higher speeds, the number of new subscribers for 1Gbps and above packages increased by 52% year-on-year."

"Our corporate business group is another major driver of growth. ICT revenue increased significantly by 19% year-on-year, and ICT order intake in the third quarter grew by 84% year-on-year, reflecting a strong pipeline of projects. At the same time, our network resilience continued to improve, mainly due to a 33% year-on-year increase in IPLC revenue from submarine cable systems, and satellite-related revenue increased by 9.8% year-on-year. In addition, as of the third quarter, we have accumulated satellite-related contract amounts exceeding NT$250 million, which validates our investments and paves the way for future revenue."

Looking to the future, we will continue to strengthen our robust core business while accelerating the advancement of the AI strategy in both consumer and enterprise markets. We have expanded our collaboration with Google to further develop consumer services empowered by AI; CHT InventAI's GenAI governance and AgentHub, as well as the newly established CHT Intelligent Vision Solutions, will further enhance our capabilities in enterprise AI and smart city applications. We remain committed to providing sustainable returns for our shareholders and advancing our ESG goals, which is reflected in our placement within the top 1% of Time Magazine's 'World's Most Sustainable Companies' ranking and the BSI AI trust designation," added Lin Rongci.

Revenue

China Telecom's total revenue in the third quarter of 2026 increased by 16.7% year-on-year, reaching NT$67.59 billion.

The consumer business group's revenue in the third quarter increased by 6.3% year-on-year to NT$37.38 billion, and its pre-tax profit increased by 1.4% year-on-year, mainly driven by the steady growth in sales from mobile services, fixed broadband, and mobile phones.

The revenue of the corporate business group increased by 8.2% to NT$20.46 billion, driven by strong performance in ICT as well as continuous growth in mobile and fixed broadband services. However, due to the higher costs resulting from the strong revenue growth in ICT, and the increase in seasonal personnel expenses while continuing to invest in retaining talent, the group's pre-tax profit decreased by 3.1% year-on-year.

In the third quarter of 2026, the International Business Group's revenue increased by 6.6% year-on-year to NT$2.48 billion, and its pre-tax profit grew by 12.2% year-on-year. Although the revenue from ICT decreased due to a higher base from a one-time item recognized last year, the strong contribution from IPLC continued to drive the growth in revenue and profitability for the International Business Group.

Operating costs and expenses

In the third quarter of 2026, total operating costs and expenses increased by 14.0% year-on-year to NT$52.21 billion, mainly due to increased costs related to one-time asset revitalization, revenue and sales growth from the ICT project, as well as rising personnel expenses.

Operating Profit and Net Profit

In the third quarter of 2026, operating profit increased by 27.1% year-on-year to NT$15.38 billion. The operating profit margin was 22.65%, higher than 20.89% in the same period of 2025. Net profit attributable to shareholders of the parent company increased by 29.5% year-on-year to NT$12.22 billion. Basic earnings per share were NT$1.57.

Cash flow and EBITDA

As of September 30, 2026, cash flow from operating activities increased by 9.6% year-on-year to NT$49.84 billion.

As of September 30, 2026, cash and cash equivalents increased by 38.2% year-on-year to NT$32.52 billion, showing an increase from September 30, 2025.

In the third quarter of 2026, EBITDA amounted to NT$25.66 billion, representing a year-on-year increase of 16.1%. The profit margin for EBITDA was 37.97%, which is lower than the 38.17% recorded during the same period in 2025.

Business Highlights

Mobile ServicesAs of September 30, 2026, China Telecom had 13.51 million mobile users, a year-on-year increase of 2.5%. The total revenue from mobile services in the third quarter increased by 2.9% year-on-year to NT$17.8 billion; after excluding IoT SIM cards, the postpaid ARPU service revenue increased by 2.0% year-on-year to NT$573.

Fixed broadband / HiNetAs of September 30, 2026, the number of broadband users increased slightly by 0.7% to 4.48 million. HiNet The number of broadband users increased by 1.5% to 3.84 million. In the third quarter, the total revenue from fixed broadband services grew by 3.0% year-on-year to NT$12.04 billion; ARPU it increased by 1.6% to NT$822.

Fixed TelephoneAs of September 30, 2026, the number of fixed-line telephone users was 8.44 million.

Financial Statements

Financial statements and more operational data can be found on the company's website: http :// www.cht.com.tw / en / home / cht / investors / financials / quarterly-earnings

Forward-looking Statements Warning

This press release contains forward-looking statements. Such statements are defined under Section 27A of the Revised Securities Act of 1933, Section 21E of the Revised Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements can be identified by words such as "will," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate," and similar phrases. Statements other than historical facts, including China Telecom's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and actual results may differ significantly from those stated in these forward-looking statements. Various important factors could lead to significant differences between actual results and the content of any forward-looking statements. Investors should be aware that actual events and results may differ significantly from these statements due to a variety of factors, including but not limited to the risks listed in China Telecom's filings with the U.S. Securities and Exchange Commission, such as the F-1, F-3, 6-K, and 20-F forms (all in their revised versions). The forward-looking statements in this press release reflect China Telecom's current judgment as of the date of issuance. Except as required by applicable law, China Telecom has no obligation to update these forward-looking statements due to subsequent events or circumstances.

This press release does not constitute an offer to sell securities in the United States. Unless registration is completed or an exemption from registration is obtained, securities may not be offered or sold in the United States. Any public offering conducted in the United States will be through a prospectus, which can be obtained from the issuer or from the holders of the securities being sold, and will contain detailed information about the company and its management, as well as financial statements.

Non-GAAP Financial Indicators

To complement the consolidated financial statements prepared by the company in accordance with the requirements of the Financial Supervision and Administration Commission, based on T-IFRSs, China Telecom also provides EBITDA, which is a "non-GAAP financial indicator". EBITDA is defined as consolidated net profit (loss) minus the following items: (i) depreciation and amortization; (ii) total net comprehensive financing costs (including net interest expenses, exchange gains and losses, monetary item gains and losses, and other financing costs and derivative transactions); (iii) other net income; (iv) income (loss) from discontinued operations.

In managing company operations, China Telecom uses EBITDA as a measure of operational performance because it excludes: (i) depreciation and amortization, which are non-cash expenses; ( ii ) certain financing costs that are significantly affected by external factors such as interest rates, exchange rates, and inflation rates, yet these factors have limited or no impact on operational performance; ( iii ) income tax; ( iv ) other expenses or revenues that are not related to business operations.

Tips on the Use of Non-GAAP Financial Indicators

In addition to the consolidated financial results prepared in accordance with T-IFRSs, China Telecom also provides non-GAAP financial indicators, including “EBITDA”. The company believes that these non-GAAP financial indicators can provide investors with another method of assessing business results, focusing on the ongoing performance of the operations.

China Telecom's management believes that when investors evaluate the company's operating results and predict and analyze future periods, referring to these non-GAAP financial indicators will help to increase transparency. However, the company also acknowledges:

• These non-GAAP financial indicators have limited uses and should only serve as a supplement to the company's T-IFRSs financial indicators;
• These non-GAAP financial indicators should not be considered in isolation from the company's T-IFRSs financial indicators, nor should they replace the latter;
• These non-GAAP financial indicators should not be considered superior to the company's T-IFRSs financial indicators;
• These non-GAAP financial indicators are not prepared in accordance with T-IFRSs. Investors should not assume that the non-GAAP financial indicators in this performance press release are prepared based on a set of complete rules or principles.

In addition, these non-GAAP financial indicators may have characteristics unique to China Telecom and differ from the non-GAAP financial indicators used by other companies. Therefore, the presentation of these non-GAAP financial indicators may not necessarily enhance the comparability of the company's performance with that of other companies. Readers should be aware that non-GAAP results should not be regarded as a substitute for T-IFRSs results, nor should they be considered comparable to the reporting or forecast results of other companies.

About China Telecom

China Telecom (TAIEX 2412, NYSE : CHT) ("China Telecom" or "the Company") is the largest integrated telecommunications service provider in Taiwan, offering fixed-line telephony, mobile services, broadband, and internet services. The company also leverages its capabilities in big data, information security, cloud computing, and IDC to provide information and communication technology services to corporate clients, and is expanding its business into innovative technology service areas such as the Internet of Things and AI. China Telecom continues to actively promote environmental, social, and governance (ESG) initiatives, with the goal of achieving sustainable development. It has received numerous international and domestic awards and recognition for its ESG commitments and best practices. For more information, please visit the company's website: www.cht.com.tw.

Contact person: Angela Tsai

Telephone: +886 2 2344 5488

Email: chtir @ cht.com.tw