Far EasTone Telecommunications (4904) Q1 2025 earnings summary

Executive summary

• Achieved record-high Q1 2025 revenue of NT$26.04 billion, up 1.2% year-over-year, with net income at NT$3.27 billion, a 10.3% increase, and EPS at NT$0.90, all record highs for the period.

• EBITDA reached NT$9.48 billion, up 6.6% YoY, with improved margins and strong cash flow.

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

• Exceeded all financial KPIs and guidance for Q1 2025, driven by mobile, 5G upgrades, APT migration, and robust ICT segment growth.

• Gross margin improved to 32% from 30% YoY, and operating income grew 22% YoY to NT$4.32 billion.

Financial highlights

• Q1 2025 revenue: NT$26.04 billion, up 1.2% YoY, marking 18 consecutive quarters of positive YOY growth since Q2 2021.

• EBITDA: NT$9.48 billion, up 6.6% YoY, highest in company history; EBITDA margin improved to 36.4% from 34.5% YoY.

• Net income: NT$3.27 billion, up 10.3% YoY, with EPS at NT$0.90; net income margin rose to 12.4% from 11.4% YoY.

• Free cash flow remains strong; CapEx at NT$1.54 billion, in line with NT$8.3 billion annual guidance.

• Operating cash flow for the quarter was NT$7.74 billion; cash and cash equivalents stood at NT$5.43 billion.

Outlook and guidance

• Aiming to complete APT customer migration by year-end 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 continued growth in mobile and ICT revenue.

• 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.