Q2 2026 Far EasTone Telecommunications Co Ltd Earnings Call Transcript

Aug 6, 2026 / 08:00 AM GMT

Release Date Price: NT$102 (+0.99%)

Transcript

Key Points

Positve

Far EasTone Telecommunications Co Ltd (TPE:4904) achieved record-breaking Q2 2026 results, with total revenue of NT$28.66 billion (up 9.8% YoY on a restated basis) and EPS of NT$1.11, significantly exceeding its guidance of NT$0.94.
The company's 5G migration strategy is highly effective, with a 40.7% monthly fee uplift for 5G renewals and postpaid 5G penetration reaching 49.3%, on track to break the 50% mark this year.
ICT revenue grew 23% YoY in the first half, driven by strong demand for AI and cloud services, with contract value doubling (103% growth) and the digital transformation segment seeing 50% YoY revenue growth.
The company's financial position is robust, with net debt reduced to NT$32.8 billion, a net debt-to-EBITDA ratio of 0.83x, and year-to-date free cash flow of NT$14.5 billion.
New growth initiatives are performing well, including the 'Taste Taiwan' dining app (250,000 users), a 20% YoY growth in Friday video paid subscriptions, and the 5G FWA home entertainment package exceeding its target by 23%.
The company's essential services are showing strong double-digit growth, including entertainment (29% YoY) and fraud prevention features (56% YoY), diversifying revenue streams beyond core mobile services.

Negative

The company's overall EBITDA margin declined slightly to 35.8% due to a portfolio shift, as lower-margin merchandise sales (up 11% YoY) grew faster than higher-margin mobile services.
ICT project delivery has faced delays, with some projects not completing on schedule, meaning revenue recognition is pushed to future quarters and the reported 23% growth understates the actual demand.
The 5G standalone (SA) deployment is still in early stages, with only 50% coverage expected by year-end, and it requires certification from Apple, which could limit near-term monetization.
The LEO satellite service partnership with Amazon is still in the early approval process, with only three of six government gates passed, and revenue potential remains undisclosed due to NDA constraints.
CapEx spending was lower than expected in the first half, but the company approved an additional NT$1 billion in CapEx, indicating higher spending and potential pressure on cash flow in the second half.
The company's postpaid net adds (733) remain below pre-merger levels (758), indicating that the integration with APT is still not fully complete and competitive pressure persists.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

4904.TW - Far EasTone Telecommunications Co Ltd
Q2 2026 Far EasTone Telecommunications Co Ltd Earnings Call
Aug 06, 2026 / 08:00AM GMT

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Presentation
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Unidentified_1 [1]
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Welcome everyone to Far East Stone's 2026 second quarter earnings conference call.

All lines have been placed on mute to prevent background noise. After the presentation, there will be a question-and-answer session. Please follow the instructions given at the time if you would like to ask the question.

And for your information, a webcast replay will be available within an hour after the conference has finished. Please visit www.fireystone.com.tw under the Investor Relations section.

Now I would like to introduce Mr. Gary Lai, the IR officer.

Thank you. Gary, please begin.

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