<Far EasTone Earnings Call> Growth Engines Fully Activated: H1 EPS Hits Record High of NT$2.14

Far EasTone (4904-TW) held its earnings conference today (June 6). Benefiting from users steadily upgrading to 5G, strong smartphone sales, steady growth in personal digital services, and sustained momentum in smart information and communications technology (ICT), the company achieved a post-tax net profit of NT$7.718 billion in the first half of the year, with earnings per share (EPS) reaching NT$2.14—both record highs.

In Q2, revenue reached NT$28.664 billion, up 3.09% quarter-on-quarter and 13.63% year-on-year, marking a historical high for the period. EBITDA hit NT$10.155 billion, up 0.78% QoQ and 8.12% YoY, setting a new quarterly record. Post-tax net profit was NT$4.009 billion, up 8.09% QoQ and 18.82% YoY—also a quarterly high—with EPS at NT$1.11.

Cumulative revenue for the first six months reached NT$56.468 billion, up 10.1% YoY; EBITDA totaled NT$23.231 billion, up 7.2% YoY; and post-tax net profit amounted to NT$7.718 billion, up 16.7% YoY, with EPS at NT$2.14. All three metrics—revenue, EBITDA, and net profit—set historical records for the first half and surpassed full-year financial forecast targets. Notably, net profit and EPS achievement rates reached 113%.

Driven by continued 5G upgrades and strong number portability demand, mobile service revenue in Q2 reached NT$15.8 billion, up 3% YoY. Monthly subscription ARPU remained on an upward trend, with 5G penetration among monthly subscribers rising to 49.3% in the first half. Additionally, digital entertainment revenue grew 29% YoY, anti-fraud service revenue surged 56% YoY, and mobile financial service revenue increased 8% YoY—key drivers behind the strong H1 performance.

Regarding personal digital services, Far EasTone reported that its one-stop dining platform 'Where to Eat' attracted over 200,000 accounts since its April launch, with plans to reach one million users by year-end. The 'Play-to-Earn Coins' service, launched in collaboration with global gaming marketing platform adjoe, achieved its annual target within just two months. Innovative tariff plans have been well-received: the '5G Home Broadband – Home Entertainment Pack' exceeded sales targets by 123%. The 'Youth Together 588' plan, targeting Gen Z customers, saw young users account for 33% of new subscriptions.

In entertainment, Far EasTone's friDay Video saw paid subscribers grow 20% YoY in Q2, with revenue up 17% YoY. Meanwhile, the 'Far EasTone Guardian Network' saw paid subscribers increase 44% YoY.

Enterprise smart ICT services also showed continuous growth, with smart ICT revenue up 23% YoY in the first half. Within the four enterprise ICT domains, sustainable smart city projects secured key contracts in smart street lighting and energy systems. Smart campus solution revenue rose 46% YoY.

Digital transformation services, driven by AI and cloud demand, saw H1 revenue grow 50% YoY, with contract value already surpassing the full-year 2025 target. Smart healthcare projects are being delivered progressively, with remote healthcare contract value up 76% YoY and smart hospital solutions up 114% YoY. In telecom system integration, the company secured multiple large-scale smart transportation and smart infrastructure projects.