Taiwan Mobile (3045) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 and H1 2024 results, with robust growth in mobile, broadband, and e-commerce segments, driven by the successful integration of Taiwan Star and effective upselling strategies.

• Merger synergies materialized faster than expected, resulting in significant cost savings and operational efficiencies.

• Recognized for top leadership and ESG performance in regional and global rankings, including "Most Honored Company" in Asia ex-Japan for three consecutive years.

• The merger with Taiwan Star Telecom was completed in December 2023, expanding spectrum holdings and business scale.

• The independent auditor's review found no material misstatements in the financial statements.

Financial highlights

• Q2 2024 consolidated revenue reached NT$47.74 billion, up 10% YoY; H1 2024 revenue was NT$96.02 billion, up 11% YoY.

• Q2 2024 EBITDA was NT$10.59 billion, up 19% YoY; H1 2024 EBITDA was NT$21.17 billion, up 20% YoY.

• Telecom EBIT rose 53% YoY in H1 2024, and consolidated operating income increased 11% YoY to a seven-year high.

• Net profit grew 8% YoY in H1 2024 to NT$6.2 billion, while EPS remained flat at NT$2.05 due to share dilution from the merger.

• Free cash flow (pre-IFRS 16) was NT$4.49 billion in Q2 2024, with an annualized yield of 5.5%.

Outlook and guidance

• Confident in sustaining merger synergies and recurring cost savings, with further upside expected as network consolidation continues.

• FY24 consolidated EBITDA guidance raised to 11-13% YoY growth, with 1H24 actual EBITDA growth at 20% YoY.

• Anticipates continued ARPU and mobile service revenue growth, supported by 5G penetration and upselling.

• Plans to scale up 3P advertising and live commerce in e-commerce segment.

• No material impact is expected from new IFRS standards effective in 2025.