True Reports Soled Third Quarter Results with Continued Service Revenue Growth
BANGKOK, November 14, 2017 – True Corporation PLC (SET: TRUE) reported improved bottom line performance in the third quarter of 2017 as its competitive strengths continued to drive above industry revenue growth and cost controls remained strong.
Consolidated service revenue continued to increase to Baht 24.5 billion largely due to strong performance of TrueMove H with growing non-voice revenues and expanding subscriber base for both postpaid and prepaid segments. This drove EBITDA growth of 39.0% YoY to Baht 8.9 billion while EBITDA margin remained solid at 36.5%.
Consolidated net income improved significantly to a loss of Baht 691 million in 3Q17 when compared to a loss of Baht 2.5 billion in 3Q16 following the Group’s higher operating profit as cost control initiatives continued to gain traction.
President (Co) for Commercial Mr. Vichaow Rakphongphairoj said, “We are pleased to see positive and improving trends of True Group’s bottom line performance in the third quarter as we continue to grow revenue while controlling costs. Of special mention was the stellar performance of TrueMove H which once again outperformed the industry both in terms of revenue and subscriber growth. TrueMove H was the only operator reporting positive net adds while the other two major players reported negative net adds for six and three consecutive quarters. Its non-voice revenue surged further on strong data demand and network superiority. At the same time, the Group’s broadband business sustained solid growth with strong net adds and revenue increasing at a double-digit rate YoY. We see considerable potential for our digital platforms including IoT and TrueID which will gradually develop into an important revenue stream as we are well positioned to accelerate growth alongside the country’s transition to Thailand 4.0. Our priority is to significantly improve profitability and the Group’s financial health going forward.”
President (Co) for Operations Mr. Adhiruth Thothaveesansuk said, “True Group has continued to enhance customer experience by constantly improving network and service quality at all touch points. Advanced technologies and the Group’s digital platform have been utilized to provide a wide range of competitive and best-fit offerings to consumers. These translated to several recognitions including the broadband Internet service provider brand of the year recently received from World Branding Awards, the ultimate global brand recognition accolade. TrueOnline was the only Thai internet service provider receiving this prestigious award. All these reinforced our already high positive perceptions among consumers. At the same time, our organization has become more efficient as it is structured to be more responsive to customers’ demands and the changing competitive environment. These resulted in continued solid growth of the Group’s revenue and subscriber base and placing True Group in a prime position to reap the benefits from consumers’ accelerating demands for wired and wireless broadband consumption in this digital age.”
As the leading and fully-integrated telecommunications operator in Thailand, True Group strives to develop its business towards sustainability by raising the quality and increasing the coverage of its communication networks to fully facilitate a digital society and enable equal access for all to knowledge sources and digital content. As a result, True has received a number of international recognitions in sustainable development and is one of the few telecommunication companies to be selected in both Dow Jones Sustainability Index – Emerging Markets, and the FTSE4Good Emerging Index. These reflect the Company’s strength and continuous commitment to corporate sustainability. True Group will continue to raise the bar on corporate sustainability to further create shared value for its stakeholders.
TrueMove H’s subscriber and revenue growth were the result of its ongoing commitment to developing the best network, competitive data and device-bundling propositions, and special privileges through TrueID, TrueYou and its business partners. TrueMove H’s subscriber base continued to expand to 26.7 million at the end of the third quarter. The business’ non-voice revenue sustained its strong growth pace, increasing 22.2% from the same period last year, underpinned by growth in both postpaid and prepaid segments. These drove TrueMove H’s service revenue up 15.3% YoY to Baht 17.1 billion in 3Q17 compared to 2.0% YoY growth of the other two major players combined.
TrueOnline’s broadband Internet growth remained solid in Q3 with customer base reaching 3.0 million and revenue increasing approximately 15% YoY despite increased competition. The business remained focus on providing high-quality fiber and convergence offerings to meet consumers’ growing demand. In addition, TrueOnline strengthened its leading position in the enterprise segment by offering full-scale Internet service with innovative and versatile solutions customized to match customer needs in all businesses. Further expansion of the Group’s fiber broadband in the Bangkok Metropolitan Area (BMA) and key provincial markets will continue to drive strong broadband growth momentum.
TrueVisions’ comprehensive range of international and local content, combined with its strengths on live broadcasting and HD viewing experience, remain one of the key drivers for expanding its subscription revenue and paying subscriber base. The business ended the third quarter with a total customer base of 4.0 million households. At the same time, TrueVisions’ quality content is shared across True Group’s multiple platforms particularly through the TrueID application. This not only enhances the Group’s competitiveness but also contributes to customers’ engagement and subscriptions to True Group’s various products.
Remark: Net IC = Interconnection revenue minus interconnection cost
Selling and administrative expenses excluding depreciation and amortization