Q3 2024 Taiwan Mobile Co Ltd Earnings Call Transcript
Key Points
- Taiwan Mobile Co Ltd (TPE:3045) completed the consolidation of over 9,000 base stations three months ahead of schedule, leading to significant cost savings.
- The mobile business showed strong momentum with a 26% year-over-year revenue growth, driven by both the addition of Taiwan Star users and an 8% organic growth in the existing user base.
- Home broadband business reported an 18% year-over-year revenue growth, supported by upselling faster speeds and effective cross-selling strategies.
- Consolidated EBITDA increased by 20% year-over-year, reaching a new record of TWD31.7 billion, driven by merger synergies and Telco Plus strategies.
- The company achieved a low post-monthly churn rate of 0.8%, reflecting effective promotion of unique bundles and customer loyalty strategies.
- The e-commerce business, momo, experienced subdued revenue growth due to a shift in consumer spending towards travel and leisure activities.
- Despite stable gross margins, momo's EBITDA margin declined year-over-year due to investments in new businesses and marketing expenses.
- Financing costs increased as a result of inheriting and refinancing Taiwan Star's debt.
- There was a year-over-year increase in gross debt due to the acquisition of Taiwan Star's borrowing and dividend payments.
- Cash and cash equivalents declined quarter-over-quarter, primarily due to momo's dividend payout.
Good afternoon, ladies and gentlemen. Welcome to the conference call. Our chairperson today is Mr. Jamie Lin. Mr. Lin, please begin your call and I'll be standing by for the question-and-answer session. Thank you.
Thank you, operator. Good afternoon, everyone. Welcome to Taiwan Mobile's third quarter, 2024 results conference call. Before I start our presentation, please do refer to our Safe Harbor notice on this page. Now let's take a look at our business overview. Please turn to page 4 for highlights of the quarter.
It's been three quarters since our merger with Taiwan start took place last December and I'm proud to share that we have completed the consolidation of all 9,000 plus base stations in September, almost three months ahead of our initial timeline.
I'll talk about the benefits of this accelerated completion in more details as we get to the next slide. But before that, as highlighted here, our mobile business continued to build on strong momentum with revenue growing at 26%
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