Far EasTone Telecommunications Co Ltd (TPE:4904) Q3 2024 Earnings Call Highlights: Strong ...

GuruFocus News
4 min read

In This Article:

  • Revenue Achievement Rate: 96%, slightly below guidance due to adjusted handset-only sales targets.

  • EBITDA: TWD26.93 billion year-to-date, up from TWD23.93 billion last year; 12.7% YoY growth for Q3.

  • Net Income: TWD3.16 billion for Q3, with EPS at TWD0.88, exceeding target by over 9%.

  • EPS: TWD2.55 year-to-date, compared to TWD2.56 last year; 14% better than guidance.

  • Total Revenue Growth: 6.5% YoY for Q3.

  • Net Debt: Reduced from TWD55.88 billion to TWD49 billion.

  • Net Debt to EBITDA Ratio: Improved from 1.74x to 1.54x.

  • Cash CapEx: Expected to be slightly below TWD8.1 billion guidance.

  • Mobile Service Revenue Growth: 18% for the first three quarters.

  • Postpaid 5G Penetration: 42% penetration rate.

  • Mobile Postpaid ARPU: TWD703, leading peers.

  • Postpaid Churn Rate: Approximately 0.9%.

  • Smart ICT Revenue Growth: 11% YoY with 29% margin.

  • Nextlink EBITDA Growth: 28% YoY.

  • Security Service Revenue Growth: 23% YoY with 33% EBITDA growth.

  • Smart Health Revenue Growth: 28% for the first three quarters.

  • friDay Video Engagement: 23% increase in viewing time per user.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Far EasTone Telecommunications Co Ltd (TPE:4904) achieved a 12.7% year-over-year growth in EBITDA, exceeding their Board target by 2%.

  • The company successfully realized TWD3 billion in EBITDA merger synergy within nine months, ahead of their one-year target.

  • Far EasTone's net income for the third quarter reached TWD3.16 billion, achieving a target surpassing 9% and marking an eight-year high for the same period.

  • The company reported a 6.5% year-over-year increase in total revenue for the third quarter, marking the 16th consecutive quarter of positive YoY growth for mobile service.

  • Far EasTone's Smart ICT business, including cloud services, showed strong growth with an 11% increase in revenue and a 29% increase in margin.

Negative Points

  • The company's third-quarter revenue achievement rate was 96%, falling slightly short of their guidance due to adjusted targets for handset-only sales.

  • The price of iPhones dropped faster than expected, impacting the company's handset sales strategy and revenue.

  • Far EasTone's EPS was slightly lower than last year's, at TWD2.55 compared to TWD2.56, due to an inflated number of shares post-merger.

  • The company's cash CapEx is expected to be slightly lower than the guidance of TWD8.1 billion due to timing issues with payment realization.

  • The new iPhone launch did not meet expectations in terms of supply, contributing to the third-quarter revenue shortfall.

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