Far EasTone eyes earnings turnaround next year

Far EasTone Telecommunications Co (遠傳電信) yesterday said it aims to turn around its earnings next year and hopes to report healthy double-digit percentage growth in 2026, aided by its acquisition of Asia Pacific Telecom Co (亞太電信).

The telecom’s earnings per share fell 4.1 percent to NT$0.81 in the first three months of this year, compared with NT$0.85 in the same period last year, diluted by an increase of 9.6 percent in capital shares.

However, net profit increased 6.1 percent year-on-year to NT$2.92 billion (US$90.18 million) from NT$2.75 billion, surpassing the company’s forecast of NT$2.8 billion per quarter.

“We hope to make a turnaround in the second year [of the Asia Pacific Telecom acquisition]. For the third year, we hope to return to our previous growth path of double-digit percentage growth,” Far EasTone president Chee Ching (井琪) told reporters in Taipei. “Earnings in 2026 will exceed that of last year.”

Far EasTone Telecommunications Co president Chee Ching poses for a photograph at a media gathering in Taipei yesterday. Photo courtesy of Far EasTone Telecommunications Co via CNA

Far EasTone formally acquired Asia Pacific Telecom on Dec. 15 last year. The acquisition helped boost Far EasTone’s mobile subscriber base to 9.08 million users at the end of last year from 7.22 million in the third quarter of last year.

However, the acquisition was a drag on its average revenue per unit (ARPU) in the initial phase.

Far EasTone’s ARPU fell to NT$695 last quarter, from NT$746 in the fourth quarter of last year, as a bulk of Asia Pacific Telecom’s users are low-tariff subscribers.

“We expect to see significant incremental growth in ARPU,” Ching said, citing the company’s three-year business plan implemented following the absorption of the smaller telecom.

“We will offer more value-added services, including new artificial intelligence applications, to drive ARPU. We already have some on offer and will have much more this year and next year in collaboration with start-up partners,” she said.

Far EasTone has already shown some positive signs of growth, as about 70 percent of Asia Pacific Telecom users signed up for higher-tariff subscriptions when they switched to Far EasTone, the company said.

Far EasTone said it expects 20 percent of its total revenue to come from traditional telecom services, a similar portion to last year.

Revenue this year is expected to increase 12 percent annually from NT$93.69 billion last year, it said.

The telecom said the acquisition would help save operational expenses from the second half of this year, following the integration of its base stations with those of Asia Pacific Telecom.

Capital expenditure would fall to NT$7.3 billion this year from NT$8.1 billion last year, it added.