Top Telecom Profit for First Three Quarters
Taiwan Mobile held its Q3 Year 115 online earnings call yesterday (12th), reporting Q3 consolidated revenue of 503.7 hundred million, up 9% YoY; consolidated operating income of 58.9 hundred million, up 15% YoY; EBITDA of 113.1 hundred million, net income after tax of 42.6 hundred million, up 18% YoY, with EPS of 1.40, up 18% YoY. Cumulative consolidated revenue for the first three quarters of Year 115 was 1,495.8 hundred million, consolidated operating income was 179.4 hundred million, up 16% YoY; net income after tax was 129.5 hundred million, up 23% YoY; EPS reached 4.26, up 22% YoY, ranking top in the telecom industry for EPS; free cash flow reached 184.8 hundred million, up 24% YoY. The three Great Wall Enterprise growth flywheels continued to accelerate, with mobile and household business revenue up 8% YoY, enterprise services revenue up 34% YoY compared to the same period last year; technology business revenue was up 7% YoY, or up 14% YoY excluding momo.
Telecom Business Hits Record High as ARPU and Penetration Rise
Telco telecom business, driven by its sustainable growth foundation strategy with Foundation, saw mobile service revenue grow 3% YoY to 170.5 hundred million, a record high, with 5G accounting for 70%. Smartphone postpaid user ARPU rose 3% YoY to 697, and postpaid churn hit a record low of only 0.48%. Smartphone 5G penetration rose to 46%; 4G users renewing and upgrading to 5G saw average monthly fees rise by 47%. Household business revenue grew 14% YoY, including broadband business revenue up 5% YoY, showing continued mobile-household integration benefits.
Enterprise Services Surge, momo Momentum Recovers
Telco enterprise telecom business saw overall revenue grow 34% YoY in Q3 Year 115. Among them, AIDC data center business revenue grew 140% YoY, enterprise IT communications services revenue grew 284% YoY, security services revenue grew 53% YoY, IoT services revenue grew 23% YoY, and mobile advertising network revenue grew 10% YoY. Users of the one-stop smart solution for SMEs, restaurants and retail stores, the "OP Store Kit", grew 37% YoY. Telco Tech new technology telecom business Q3 Year 115 revenue excluding momo grew 14% YoY, including brand e-commerce revenue up 86% YoY, OTT services and content investment revenue up 26% YoY, driven by carrier billing service "Da Ge Fu Sui Zhang Shou", brand e-commerce, game publishing, as well as MyVideo, OTT services and content investment. momo growth momentum warmed, with Q3 Year 115 e-commerce GMV up 11% YoY, paying members up 5% YoY; total revenue reached 262.97 hundred million, up 7% YoY; mo store GMV posted double-digit YoY growth with over 4.3 million items, and momo network advertising revenue posted double-digit YoY growth.
Acquisition of Systex Completed, Shareholding Reaches 61.02%
The tender offer for Systex Information common shares by Taishin Telecom, a subsidiary of Taiwan Mobile, has been completed, acquiring 49.16% of Systex issued shares in total. Together with the 11.86% stake originally held by Taiwan Mobile, total shareholding after the transaction will reach 61.02%. The consideration includes cash of approximately 124 hundred million and approximately 112.4 million common shares of Taiwan Mobile. Based on the pro forma balance sheet, total consolidated assets of Taiwan Mobile after the acquisition will increase to 3,000 hundred million. In terms of profit contribution, based on Systex earnings for the first three quarters of Year 115 and pro forma calculation excluding related interest expenses, Systex contribution to Taiwan Mobile net income will increase from approximately 2.34 hundred million to 12.26 hundred million, about 5.2 times before the acquisition. Taiwan Mobile General Manager Jamie Lin said the three Great Wall Enterprise growth engines continue to run at full speed, demonstrating strong momentum and significant operating leverage. The successful completion of the Systex Information tender offer is an important milestone in driving technology transformation, establishing a key strategic position to capture AI enterprise application opportunities. This investment will immediately bring accretion to EPS, with only a slight increase in net financial leverage, maintaining high financial flexibility. Looking ahead, the two sides will unlock synergies through "cross-selling", "AI integration" and "regional expansion", combining telecom infrastructure with software capabilities and enterprise customer base to build an enterprise enablement platform.