04.2021 Group Briefing
FET's profit forecast of 2020 exceeds the target
Mr. Lin Mengxuan / far EasTone telecommunication
On February 25, far EasTone telecommunications held a corporate telephone briefing meeting in the fourth quarter of 2020. In the fourth quarter of 2020, the consolidated total revenue was 22.807 billion yuan; the financial performance profit grew steadily, with consolidated EBITDA of 6.9 billion yuan; net profit after tax of 1.885 billion yuan, after tax earnings per share (EPS) of NT $0.58, and the financial measurement achievement rate of 100.8%. In 2020, the annual consolidated revenue of far EasTone telecommunications is NT $79.501 billion; the consolidated earnings before depreciation and amortization (EBITDA) is NT $27.599 billion; the after tax earnings is NT $8.354 billion, and the earnings per share (EPS) is NT $2.56. The annual EPS financial forecast achievement rate is 104.2%.
Looking at the overall mobile communication market in Taiwan, the total number of users in Taiwan's mobile market tends to be saturated, and the mobile number portability market remains cold. However, the number of monthly rental users of far EasTone telecommunications has been growing continuously since the third quarter of 2018. The monthly rental customer churn rate continues to reach a new low, and the average revenue per user of far EasTone telecommunications has been increasing, ARPU continues to lead the industry! The number of applications for far EasTone telecommunication 5g has grown steadily. As high as 95% of 5g users have applied for more than $999 information fee, and the average increase of renewal users' information fee is more than 15%, injecting ARPU growth. Far EasTone telecommunication 5g network speed is the first in the whole station. Through AI big data precise site selection, more than 4600 5g platforms have been built, with a population coverage rate of 61%, and it is expected to exceed 90% by the end of this year.
Far EasTone telecommunications promotes the digital transformation, and its benefits continue to show. It has strong operational strength, creating excellent operational results and financial performance again. In 2020, under the influence of the epidemic, the annual growth rate of new economy revenue will still reach 13%. Among them, the annual growth rate of revenue of asset communication business was 17%, including 68% increase in revenue of cloud services over the same period last year, 57% increase in revenue of Internet of things (IOT), 29% increase in revenue of asset security services, and 34% increase in revenue of remote diagnosis and treatment services. Personal digital services also continued to grow strongly, including digital media service revenue increased by 15% over the same period last year, Friday Shopping mobile business revenue increased by 23%, billing service revenue increased by 11%, and Friday audio and video monthly active users increased by 20%.
Far EasTone telecommunications estimates that in 2021, the combined total revenue will grow by 3.5% to NT $82.276 billion; the consolidated earnings before depreciation and amortization (EBITDA) will be stable at NT $27.485 billion; the after tax earnings will be NT $8.368 billion, and the estimated earnings per share (EPS) will be NT $2.57. In terms of capital expenditure, the actual expenditure in 2020 is NT $10.9 billion; this year is the peak of 5g construction, and the capital expenditure in 2021 is estimated to be NT $14.9 billion. In addition, far EasTone telecommunications maintains a stable dividend policy and is expected to pay a cash dividend of NT $3.25 per share this year.
Far EasTone telecommunication 5g network quality remains in the lead. It has won the international network survey authority opensignal and Speedtest dual certification, and 5g network speed ranks first in Taiwan. It has helped Taiwan's 5g network speed leap to the third in the world. It shows that far EasTone telecommunication 5g is dedicated to the construction of AI big data, and the effect is obvious to all! Far EasTone telecommunications continues to form 5g partners, including cooperating with Delta Electronics, Inc. and Taiwan Microsoft to build the country's first 5g smart factory; cooperating with Taitung county to launch the country's first 5g remote diagnosis and treatment service; assisting Taipei water supply department to build smart water meters; and MediaTek.Inc Create 5g millimeter wave vertical field, accelerate the first 5g millimeter wave chip. Far EasTone telecommunications actively explores 5g application fields, sets new milestones for Taiwan's 5g process, and drives the industry into a new era of 5g!
Looking forward to 2021, far EasTone telecommunications will focus on both "consumer digital life" and "enterprise intelligence transformation", continue to cultivate 5g "big data + AI + IOT" (big data, artificial intelligence, Internet of things (IOT)) applications, strive for profitable growth of capital communication services, and provide customized 5g information fee by accurately grasping customer needs The scheme, together with multiple digital value-added services such as "far EasTone telecommunication heartlife" app, benefits users in an all-round way, enhances the overall value of users, and encourages the acceleration of 5g upgrade. In addition, we will continue to maximize investment benefits through cost control and precision investment.
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Looking at the overall mobile communication market in Taiwan, the total number of users in Taiwan's mobile market tends to be saturated, and the mobile number portability market remains cold. However, the number of monthly rental users of far EasTone telecommunications has been growing continuously since the third quarter of 2018. The monthly rental customer churn rate continues to reach a new low, and the average revenue per user of far EasTone telecommunications has been increasing, ARPU continues to lead the industry! The number of applications for far EasTone telecommunication 5g has grown steadily. As high as 95% of 5g users have applied for more than $999 information fee, and the average increase of renewal users' information fee is more than 15%, injecting ARPU growth. Far EasTone telecommunication 5g network speed is the first in the whole station. Through AI big data precise site selection, more than 4600 5g platforms have been built, with a population coverage rate of 61%, and it is expected to exceed 90% by the end of this year.
Far EasTone telecommunications promotes the digital transformation, and its benefits continue to show. It has strong operational strength, creating excellent operational results and financial performance again. In 2020, under the influence of the epidemic, the annual growth rate of new economy revenue will still reach 13%. Among them, the annual growth rate of revenue of asset communication business was 17%, including 68% increase in revenue of cloud services over the same period last year, 57% increase in revenue of Internet of things (IOT), 29% increase in revenue of asset security services, and 34% increase in revenue of remote diagnosis and treatment services. Personal digital services also continued to grow strongly, including digital media service revenue increased by 15% over the same period last year, Friday Shopping mobile business revenue increased by 23%, billing service revenue increased by 11%, and Friday audio and video monthly active users increased by 20%.
Far EasTone telecommunications estimates that in 2021, the combined total revenue will grow by 3.5% to NT $82.276 billion; the consolidated earnings before depreciation and amortization (EBITDA) will be stable at NT $27.485 billion; the after tax earnings will be NT $8.368 billion, and the estimated earnings per share (EPS) will be NT $2.57. In terms of capital expenditure, the actual expenditure in 2020 is NT $10.9 billion; this year is the peak of 5g construction, and the capital expenditure in 2021 is estimated to be NT $14.9 billion. In addition, far EasTone telecommunications maintains a stable dividend policy and is expected to pay a cash dividend of NT $3.25 per share this year.
Far EasTone telecommunication 5g network quality remains in the lead. It has won the international network survey authority opensignal and Speedtest dual certification, and 5g network speed ranks first in Taiwan. It has helped Taiwan's 5g network speed leap to the third in the world. It shows that far EasTone telecommunication 5g is dedicated to the construction of AI big data, and the effect is obvious to all! Far EasTone telecommunications continues to form 5g partners, including cooperating with Delta Electronics, Inc. and Taiwan Microsoft to build the country's first 5g smart factory; cooperating with Taitung county to launch the country's first 5g remote diagnosis and treatment service; assisting Taipei water supply department to build smart water meters; and MediaTek.Inc Create 5g millimeter wave vertical field, accelerate the first 5g millimeter wave chip. Far EasTone telecommunications actively explores 5g application fields, sets new milestones for Taiwan's 5g process, and drives the industry into a new era of 5g!
Looking forward to 2021, far EasTone telecommunications will focus on both "consumer digital life" and "enterprise intelligence transformation", continue to cultivate 5g "big data + AI + IOT" (big data, artificial intelligence, Internet of things (IOT)) applications, strive for profitable growth of capital communication services, and provide customized 5g information fee by accurately grasping customer needs The scheme, together with multiple digital value-added services such as "far EasTone telecommunication heartlife" app, benefits users in an all-round way, enhances the overall value of users, and encourages the acceleration of 5g upgrade. In addition, we will continue to maximize investment benefits through cost control and precision investment.
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