Far EasTone Telecommunications (4904) Q4 2024 earnings summary

Executive summary

• Achieved record highs in revenue, EBITDA, and net income for Q4 and FY2024, driven by merger synergies, 5G upgrades, and strong ICT contributions.

• Outperformed guidance with NT$4.2bn EBITDA synergy and earnings accretive from year one post-merger.

• Maintained leadership in postpaid 5G penetration, low churn rate, and 17 consecutive quarters of YoY revenue growth.

• Consolidated financial statements for 2024 and 2023 received an unmodified audit opinion, confirming fair presentation in accordance with IFRS and local regulations.

• Major business activities include mobile and fixed-line telecommunications, digital services, and equipment sales, with significant expansion through the merger with APTC and acquisition of FDS.

Financial highlights

• Q4 2024 revenue was NT$29.17 billion (+10.2% YoY), EBITDA NT$9.38 billion (+15.1% YoY), and net income NT$3.66 billion (+28.8% YoY); EPS at NT$1.01 (+16.4% YoY).

• FY2024 revenue reached NT$104.62 billion (+11.7% YoY); EBITDA NT$36.31 billion (+13.2% YoY); net income NT$12.84 billion (+14.8% YoY); EPS NT$3.56 (+4.3% YoY).

• Free cash flow improved to NT$26.44 billion YTD; CapEx was NT$7.09 billion, 13% below guidance.

• Cash and cash equivalents increased to NT$5.42 billion at year-end 2024.

• Gross profit margin remained stable at 31% for both years.

Outlook and guidance

• 2025 guidance: revenue NT$108.33 billion (+3.5% YoY), EBITDA NT$37.68 billion (+3.8% YoY), net income NT$13.10 billion (+2.0% YoY), EPS NT$3.63 (+2.0% YoY).

• CapEx for 2025 expected at NT$7.8 billion, maintaining a low level post-merger.

• Dividend payout set at NT$3.56 per share, a 100% payout ratio, up 9.5% YoY, subject to shareholder approval.

• Major migration of former APT customers and further network consolidation expected to drive cost savings.

• Management expects continued integration benefits from recent acquisitions and ongoing investments in 5G and digital services.