Taiwan Mobile (3045) Q3 2024 earnings summary

Executive summary

• Completed consolidation of over 9,000 base stations three months ahead of schedule, accelerating merger synergies and cost savings.

• Achieved strong growth in mobile and broadband, with 5G mobile service revenue up 26% year-over-year and broadband revenue up 18% year-over-year, reflecting T Star merger synergies.

• Consolidated EBITDA and operating income both increased 20% year-over-year, with operating income reaching an 8-year high.

• Revenue for the nine months ended September 30, 2024, was NT$143.2 billion, up 10% year-over-year, with net profit at NT$11.7 billion, a 16% increase from the prior year.

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

Financial highlights

• Consolidated revenues for Q3 2024 reached TWD 47.2 billion, up 9% year-over-year; net income was NT$4.16bn, up 42% year-over-year.

• EBITDA for Q3 2024 was NT$10.52bn, up 20% year-over-year; consolidated EBITDA exceeded TWD 10 billion for the third consecutive quarter.

• Free cash flow for the first three quarters was TWD 13.86 billion, up 21% year-over-year, with an annualized yield of 5.3%.

• Basic EPS for the nine months was NT$3.43, compared to NT$3.08 in the prior year.

• Cash and cash equivalents at period end were NT$9.5 billion, down from NT$13.2 billion at the start of the year.

Outlook and guidance

• Merger synergies are expected to continue driving growth in the next three quarters due to a lower comparison base.

• FY24 consolidated EBITDA guidance raised to 11–13% year-over-year growth, with actual 1–3Q24 EBITDA up 20% year-over-year.

• Focus remains on sustainable organic growth, ARPU lift, churn reduction, and expanding Telco+ and enterprise solutions.

• Management aims to deliver high single-digit organic growth through upselling and cross-selling.

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