Far EasTone Telecommunications (4904) Q1 2025 earnings summary

Executive summary

• First quarter revenue reached NT$26.04 billion, up 1.2% year-over-year, driven by mobile, ICT, and digital services growth, marking a record high for the period.

• EBITDA hit a record NT$9.48 billion, up 6.6% year-over-year, with margin improving to 36.4%.

• Net income for Q1 was NT$3.27 billion, up 10.3% year-over-year, with EPS at NT$0.90, both record highs.

• Gross margin improved to 32% from 30% year-over-year.

• The merger with Asia Pacific Telecom and acquisition of Field Delivery Service expanded fixed network and ICT services.

Financial highlights

• Revenue has shown positive year-over-year growth for 18 consecutive quarters since Q2 2021.

• Operating income grew 22% year-over-year to NT$4.32 billion, with operating margin at 17%.

• Free cash flow remains strong; CapEx for the quarter was NT$1.54 billion, in line with annual guidance of NT$8.3 billion.

• Net debt reduced to NT$39.28 billion from NT$50.07 billion year-over-year; net debt-to-EBITDA improved to 1.06x.

• Cash and cash equivalents stood at NT$5.43 billion at quarter-end.

Outlook and guidance

• Aiming to complete APT customer migration by year-end as per Fair Trade Committee deadline.

• Focus on expanding digital essential services, platform economy, and AI-enabled ICT business.

• Targeting 50% 5G penetration by year-end, with current post-pay 5G penetration at 44%.

• Board approved up to NT$6 billion in new bond issuance to strengthen working capital and repay debt.

• Dividend proposal for 2024 is NT$3.188 per share in cash, pending shareholder approval.