In This Article:
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Revenue: TWD26.0 billion for Q1 2025, a 1.2% Y-o-Y growth.
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EBITDA: TWD9.48 billion, a record high with a 6.6% Y-o-Y growth.
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Net Income: TWD3.24 billion, a 10.3% Y-o-Y growth.
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EPS: TWD0.90, a record high for the same period.
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CapEx: TWD1.54 billion spent, in line with 2025 guidance of TWD8.3 billion.
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Mobile Service Revenue: 40% uplift in monthly fees from 4G to 5G upgrades.
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Digital Essential Services Revenue: 3% growth, with a 5% margin improvement Y-o-Y.
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ICT Revenue: 24% growth, with a 13% overall revenue growth and 5% margin growth.
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Merchandise Revenue: Decreased by 6%, but margin improved by 14%.
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Postpaid ARPU: TWD713, with 44% 5G penetration.
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Postpaid Churn Rate: Reduced to 0.8%.
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Fraud Prevention Service Revenue: 38% Y-o-Y growth.
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Friday Video Subscribers: Exceeded 400,000, with a 5% revenue growth Y-o-Y.
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Guardian Network Revenue: 42% Y-o-Y growth.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Far EasTone Telecommunications Co Ltd (TPE:4904) exceeded all financial KPIs and guidance for the first quarter of 2025.
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The company achieved a record high quarterly EBITDA of TWD9.48 billion, marking a 6.6% year-over-year growth.
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Net income for the first quarter was TWD3.24 billion, with a 10.3% year-over-year increase, continuing a trend of double-digit growth for four consecutive quarters.
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The company has seen positive year-over-year revenue growth for 18 consecutive quarters, driven by steady mobile business growth and 5G upgrades.
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Far EasTone's ICT revenue grew by 24%, with significant contributions from security and cloud services, and a 63% growth in SI projects.
Negative Points
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There is a potential indirect impact from tariffs on smartphones, which could affect merchandise sales.
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The company experienced a 6% decline in merchandise revenue, although margins improved by 14%.
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Concerns were raised about ongoing legal issues with Taiwan Mobile, although the latest verdict was in Far EasTone's favor.
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The company faces challenges in maintaining growth in the face of potential economic pressures from global trade tensions.
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Despite strong performance, there is uncertainty regarding the impact of exchange rate fluctuations, although currently, it is not significant.
Q & A Highlights
Q: What is the impact of Mr. Trump's tariffs on Far EasTone's operations? A: Chee Ching, President of FET, explained that the impact is indirect since the company operates locally. While smartphones are a major merchandise, the loyalty of iPhone users is expected to mitigate any significant impact. The company has a full pipeline of ICT contracts, and no significant impact is anticipated at this time.