Financial Data and Key Metrics Changes - The company reported third-quarter revenue of NT 57.92 billion, marking a 4.2% increase year-over-year and the highest third-quarter revenue in nine years [15][16] - Operating income rose by 6.4%, while net income increased by 4.8% year-over-year, reflecting strong performance across mobile and fixed broadband services [15][16] - Earnings per share (EPS) increased from NT 1.16 to NT 1.22, the highest third-quarter EPS in eight years [16][17] - EBITDA recorded a 4% gain, reaching NT 22.11 billion, with an EBITDA margin of 38.17%, consistent with the previous year [16][17] Business Line Data and Key Metrics Changes - Mobile revenue market share increased to 40.8%, with a subscriber share of 39.4%, a 1.6 percentage point year-over-year increase [6][7] - Fixed broadband revenue grew by 3.2% year-over-year, driven by high-speed migration and promotional efforts [8] - Consumer application services saw a 22% year-over-year growth in multi-play packages, while video services fluctuated due to major sports broadcasts [9] - The enterprise ICT business experienced a 14% year-over-year increase in revenue, with significant growth in recurring ICT revenue [10][11] Market Data and Key Metrics Changes - The company maintained a leading position in the 5G market, with a subscriber market share of 38.8% and a 5G penetration rate of 44.7% among smartphone users [6][7] - The US subsidiary achieved 70% year-over-year revenue growth, driven by a construction project for a Taiwan-based high-tech company [12] - The Southeast Asia markets continued to thrive, with successful introductions of proprietary solutions in Thailand and other regions [12][13] Company Strategy and Development Direction - The company emphasizes group expansion and AI-related initiatives as critical for mid-term to long-term development [3][4] - Recent achievements include the successful public listing of Chunghwa Telecom Security and the launch of Event AI, focusing on monetizing AI innovation [4] - The company is committed to integrating ecological conservation and green finance through the issuance of a TWD 3.5 billion sustainability bond [5] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year financial results, supported by leadership across all business segments [3] - The company highlighted its commitment to social responsibility, particularly in response to natural disasters [5] - Management noted the positive trajectory in mobile and fixed broadband services, supported by Taiwan's favorable market landscape [8] Other Important Information - The company reported a healthy debt ratio of 23.91% and a stable current ratio above 100%, indicating strong financial flexibility [18] - Free cash flow declined by 16.5% year-over-year, attributed to increased working capital and timing of capital expenditures [20] Q&A Session Summary Question: What is the driver of the international project business? - The international business is driven by opportunities in the global AI supply chain, particularly in the US and Japan markets, with a focus on high-tech company projects [22][23] - The company successfully introduced cybersecurity services to Southeast Asia and Japan, leveraging collaborations with subsidiaries [23][24]

Financial Data and Key Metrics Changes - The company reported a 2.2% increase in service revenue, primarily driven by mobile, with modest growth in fixed services [10][28] - Statutory EBITDA increased by 1%, reaching $618 million, while pro forma EBITDA was $786 million, reflecting a growth of 0.9% compared to the previous year [32][38] - Net profit after tax (NPAT) was significantly up, reaching $32 million, attributed to improved operating performance and lower financing costs [33] Business Line Data and Key Metrics Changes - The mobile subscriber base grew by 100,000, with strong growth from digital-first brands TPG and Felix, despite a decline in international arrivals [5][12] - Fixed service revenue saw a slight increase of just under 1%, with fixed wireless now representing 14% of total fixed subscribers [20][21] - Average revenue per user (ARPU) for postpaid increased by 14.5% over the last three years, while total ARPU rose by 7.8% [14] Market Data and Key Metrics Changes - The company gained market share in both metropolitan and regional centers, with domestic growth in postpaid services coming at the expense of competitors [5][12] - The NBN market remains competitive, with intense competition impacting subscriber numbers for larger incumbents [21] Company Strategy and Development Direction - The company plans to return $3 billion in cash to shareholders and increase minority ownership through a reinvestment plan [7][48] - A focus on customer well-being and accessibility is part of the company's three-year roadmap to ensure fair access to essential connectivity [24] - The company is committed to maintaining a disciplined approach to operating expenses, targeting flat growth in nominal terms through to 2029 [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in the mobile segment, although they expect a more moderate performance in the second half of the year [63] - The government’s revitalized student visa program for 2026 is expected to positively impact the company’s mobile business [16] - Management acknowledged the challenges in the fixed market but emphasized the importance of maintaining profitability and improving service offerings [82] Other Important Information - The company has taken steps to address a recent cyber incident affecting iINET customers, with ongoing support measures in place [7][9] - The company has successfully canceled $1.7 billion in bank loans as part of its capital management plan [44] Q&A Session Summary Question: Mobile subscriber growth expectations for the second half - Management does not provide specific guidance on customer numbers but remains optimistic about continued growth, albeit at a moderated pace [63] Question: ARPU for digital-first brands - Management indicated that ARPU for digital-first brands is likely in the mid-twenties, with consistent growth across different brands [64] Question: Pricing strategies in the mobile industry - Management acknowledged the challenges posed by tier-two operators and the need for pricing adjustments in the market [62][66] Question: Margin differentials between digital brands and traditional prepaid - Management noted that the margin differential is significant, with digital brands benefiting from lower operational costs [73] Question: CapEx for LEOSAT opportunities - Management highlighted that investments in LEOSAT will be smaller compared to terrestrial networks, with potential for future monetization [79] Question: Fixed subscriber trends and market competition - Management expressed confidence in maintaining profitability in the fixed segment despite competitive pressures [82]

Financial Data and Key Metrics Changes - The company reported a 2.2% increase in service revenue, primarily driven by mobile, with modest growth in fixed services [8][28] - Statutory EBITDA increased by 1%, reaching $618 million, while pro forma EBITDA was $786 million, reflecting a growth of 0.9% compared to the previous year [31][37] - Net profit after tax (NPAT) rose significantly, reaching $32 million, attributed to improved operating performance and lower financing costs [31][9] - Operating free cash flow increased by 23.6% to $246 million, driven by positive working capital movements and lower capital expenditures [32][33] Business Line Data and Key Metrics Changes - Mobile subscriber base grew by 100,000, with strong growth from digital-first subscription brands TPG and Felix, despite a decline in international arrivals [4][10] - Fixed service revenue saw a slight increase of under 1%, with gross margin impacted by ongoing NBN input costs [19][20] - The average revenue per user (ARPU) for postpaid increased by 14.5% over three years, reaching $48.51, while total ARPU rose by 7.8% [12][11] Market Data and Key Metrics Changes - The mobile market remains competitive, with the company gaining market share in both metropolitan and regional areas [4][10] - The NBN market is challenging, with intense competition affecting subscriber numbers for larger incumbents [19][20] - Fixed wireless subscribers now represent 14% of total fixed subscribers, with the company maintaining its position as the number one player in this market [19][20] Company Strategy and Development Direction - The company aims to enhance customer well-being through a three-year roadmap, focusing on vulnerable customers and improving access to essential connectivity [22][23] - A capital management plan was announced, including a $3 billion cash return to shareholders and a targeted debt repayment of up to $2.4 billion [6][48] - The company is committed to increasing dividends in line with sustainable growth in profits and cash flow over time [5][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about cash flow momentum and the potential for continued growth, despite a moderate expectation for the second half of the year [63][64] - The government’s revitalized student visa program for 2026 is expected to positively impact the company’s mobile business [14][19] - Management acknowledged the challenges posed by intense competition but remains confident in the company's ability to adapt and grow [19][80] Other Important Information - The company has taken steps to address a recent cyber incident affecting iINET, ensuring that customer data was not significantly compromised [6][7] - The introduction of next-generation WiFi 7 modems is expected to enhance customer experience and attract new subscribers [21][20] Q&A Session Summary Question: Mobile subscriber growth expectations for the second half - Management indicated that while they do not provide specific guidance, they are optimistic about maintaining momentum, albeit at a more moderate pace compared to the first half [63][64] Question: ARPU for digital-first brands - Management confirmed that ARPU for digital-first brands is likely in the mid-twenties, with consistent growth across different brands [64][65] Question: Impact of tier two operators on pricing - Management noted that while tier two operators are gaining market share, their wholesale agreements are not a significant part of the company's strategy at this time [66][67] Question: Margin differential between digital brands and traditional prepaid - Management highlighted that the margin differential is significant, with digital brands benefiting from lower operational costs due to their online nature [72][73] Question: LEOSAT opportunity and monetization - Management expressed interest in LEOSAT for providing geographical coverage but noted that the timing and monetization strategies are still uncertain [76][78] Question: Fixed consumer business subscriber trends - Management acknowledged the competitive landscape but remains focused on profitability and improving service offerings to retain subscribers [81][80]

Company Overview - Viasat is a global communications and defense technology company operating in two segments: Communication Services and Defense and Advanced Technologies (DAT) [1] - The Communications Services segment includes fixed broadband, government, maritime, and inflight communications, while the DAT segment focuses on defense-technology platforms for information security, cyber defense, and tactical networking [1] Activist Involvement - Carronade Capital Management LP, an activist investment firm, owns 2.60% of Viasat and has called for the separation of the DAT business through a spin-off or IPO [2][3] Financial Performance - Viasat's revenue breakdown shows Communications contributing 73% of revenue and 80% of EBITDA, while DAT accounts for 27% of revenue and 20% of EBITDA [4] - The Communications segment is experiencing a decline in broadband revenue, down over 27% year over year, but other areas like Government and Inflight Communications (IFC) are growing at approximately 25% and 22% respectively [5] - Viasat's share price has significantly underperformed, down 21.12%, 51.56%, and 57.98% over the past 1, 3, and 5 years [4] Market Perception and Misunderstanding - Carronade argues that Viasat is misunderstood by the market, perceived as a small-cap legacy satellite company overshadowed by competitors like Starlink [5] - The DAT business is highlighted as a hidden gem with best-in-class EBITDA margins of 28% and significant growth potential in next-generation defense technologies [6][7] Valuation Analysis - Carronade estimates the DAT business could be valued between $6.3 billion to $16.2 billion based on a 20-times to 51-times EBITDA multiple, while the entire company has an enterprise value of approximately $8 billion [8] - The Communications segment is valued at $4.9 billion, with an additional $1 billion from a legal settlement, leading to a total valuation range for Viasat of $48.93 to $112.49 per share, representing a potential return of 76% to 304% [8] Strategic Direction - Carronade's proposal to spin-off or IPO the DAT business aims to unlock intrinsic value and mitigate negative market sentiment surrounding the satellite business [8] - Viasat management has indicated consideration of selling parts of the DAT business, suggesting alignment with Carronade's value proposition [9]

Financial Data and Key Metrics Changes - Revenue for the second quarter reached over NT$56 billion, marking a 4.8% year-over-year increase, driven mainly by the expansion of the ICT business and higher sales revenue [22][30] - Operating income and net income rose by 5.2% and 3.5% respectively compared to the same period last year, supported by growth in the Internet data center business and steady performance from subsidiaries [22][30] - Earnings per share increased from NT$1.27 to NT$1.31, reflecting consistent profitability and effective cost control, with EPS reaching the highest levels in nine years for the second quarter [22][30] - EBITDA increased by 3.5% year over year, reaching NT$22.58 billion, with an EBITDA margin of 39.8%, remaining broadly stable compared to last year [23][30] Business Line Data and Key Metrics Changes - Mobile service revenue grew approximately 2% year over year, with a mobile ARPU increase of 38% as more users upgraded to 5G [9] - Fixed broadband revenue increased by 1.8% year over year, driven by strategic bundle plans and symmetrical uplink/downlink speeds for services above 300 Mbps [10] - Enterprise ICT revenue increased by 27% year over year, with core service pillars like IDC, AIoT, and cloud showing robust growth of 40%, 75%, and 140% respectively [14] Market Data and Key Metrics Changes - Mobile market share rose to 40.7% as of June, achieving a new high, with the highest subscriber share among peers at 39.1% [8] - Southeast Asia market delivered double-digit revenue growth driven by demand for ICT services from high-tech companies [18] Company Strategy and Development Direction - The company continues to execute its "sea, land, and sky" strategy to enhance network resilience and seize future opportunities, including investments in undersea cables and satellite services [6][7] - The focus remains on innovation and operational excellence, with a commitment to governance and sustainability recognized by receiving the highest MSCI ESG rating of AAA [7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum of core businesses and highlighted the importance of strategic investments in ICT and satellite services to support future growth [5][6] - The company remains cautious about global market sentiment amid ongoing uncertainties but continues to invest strategically for long-term growth [18] Other Important Information - The company received the 2025 Taiwan Data Center Service Competitive Strategy Leadership Award from Frost Sullivan, recognizing its AI-ready data center capabilities [7] - Total assets increased by 1.9% as of June 30, 2025, primarily driven by an increase in current monetary assets [25] Q&A Session Summary - No specific questions were recorded during the Q&A session, and the call concluded without further inquiries from participants [33][34]