Far EasTone Telecommunications (4904) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 6.5% year-over-year, reaching NT$24.74 billion, driven by merger synergies, 5G plan upgrades, and growth in prepaid and roaming business.

• EBITDA reached a record high of NT$9.10 billion in Q3, up 12.7% year-over-year, supported by merger synergies and improved margins.

• Net income for Q3 was NT$3.16 billion, an 11.7% year-over-year increase, achieving 109% of guidance and marking an eight-year high for the period.

• For the nine months ended September 30, 2024, operating revenue was NT$75.46 billion, up 12% year-over-year, and net income was NT$9.28 billion, a 10% increase.

• The merger with Asia Pacific Telecom (APTC) was completed in December 2023, expanding fixed network and 5G spectrum assets.

Financial highlights

• 3Q 2024 total revenue: NT$24.74 billion (+6.5% YoY); 1-3Q 2024: NT$75.46 billion (+12.2% YoY).

• 3Q EBITDA: NT$9.10 billion (+12.7% YoY); 1-3Q EBITDA: NT$26.93 billion (+12.5% YoY).

• 3Q net income: NT$3.16 billion (+11.7% YoY); 1-3Q net income: NT$9.19 billion (+10.0% YoY).

• 3Q EPS: NT$0.88 (+0.9% YoY); 1-3Q EPS: NT$2.55 (adjusted +10% YoY, excluding merger dilution).

• Gross profit for the nine months ended September 30, 2024 was NT$23.63 billion, up from NT$21.07 billion year-over-year.

Outlook and guidance

• EBITDA and EPS exceeded guidance due to merger synergy; projected NT$3 billion EBITDA synergy delivered in nine months.

• Capex expected to be slightly lower than the NT$8.1 billion guidance.

• Focus for Q4 includes timely delivery of Smart ICT projects and readiness for Cloud HIS soft launch in Q1.

• The Group continues to focus on integrating APTC operations and leveraging expanded 5G and fixed-line assets for future growth.