Far EasTone Telecommunications (4904) Q4 2023 earnings summary

Executive summary

• Asia Pacific Telecom merger completed Dec. 15, 2023, after 21 months; FY2023 revenue, EBITDA and net income grew YoY, with revenue and net income at seven-year highs.

• 4Q growth was driven by 5G plan upgrades and recovery in roaming and prepaid revenue; improved gross margins supported EBITDA growth.

Financial highlights

• FY2023 revenue was NT$93,690,417 thousand (+5.1% YoY); EBITDA was NT$32.08bn (+4.2%).

• FY2023 operating income was NT$14,056,529 thousand; net income was NT$11,293,192 thousand (+16.4% YoY).

• FY2023 basic EPS was NT$3.42, versus NT$2.95; year-end share-count basis EPS was NT$3.10.

• 4Q2023 revenue was NT$26.47bn (+8.6% YoY), EBITDA NT$8.15bn (+3.3%), net income NT$2.84bn (+11.4%) and EPS NT$0.85 (+9.2%).

• Operating cash flow was NT$26,125,973 thousand, versus NT$27,079,052 thousand; year-end cash was NT$4,392,483 thousand.

Outlook and guidance

• 2024 guidance: revenue NT$104.92bn (+12.0%); EBITDA NT$35.66bn (+11.2%); net income NT$11.20bn and EPS NT$3.11, each +0.1% YoY.

• Priorities include accelerating network and APT user migration, targeting 45% 5G penetration by year-end, and expanding Smart ICT and consumer digital services.

• 2024 capex guidance maintains the post-merger level, with NT$0.8bn carried over from 2023.