Taiwan Mobile (3045) Q1 2025 earnings summary

Executive summary

• Telecom EBIT reached a 7-year high, rising 30% year-over-year, driven by strong mobile and broadband performance, offsetting weaker momo results due to increased investments.

• Net income and EPS increased 23% year-over-year, supported by lower non-operating expenses and robust telecom EBIT growth.

• Healthy cash flows supported reductions in net debt to EBITDA and sustained ROE at 15%.

• Network integration completed last year delivered significant cost synergies and profitability improvements.

• Focus remains on Telco+Tech strategies to drive near-term business expansion and unlock new growth opportunities.

Financial highlights

• Consolidated operating income grew 11% year-over-year, with telecom EBITDA up 5% and accounting for over 80% of total EBITDA.

• Net income and EPS rose 23% year-over-year; pre-tax income increased 14% to NT$4.91bn.

• Pre-IFRS 16 free cash flow reached NT$4.41bn, with an annualized yield of 5%.

• Net debt to EBITDA improved to 1.72x, and ROE sustained at 15% in Q1 2025.

• momo segment revenue declined 2% year-over-year; EBITDA down 22% year-over-year.

Outlook and guidance

• Telco+Tech strategies are expected to drive near-term business expansion and unlock additional growth opportunities.

• Focus remains on leveraging new telco-powered tech businesses for future growth.