True Continues to Report Improving Business Operations with Robust EBITDA and MARGIN Growth in 2Q17
BANGKOK, August 15, 2017 – True Corporation PLC (SET: TRUE) delivered solid performance in the second quarter of 2017 with EBITDA surging 37.8% from the previous year and margin jumping to 36.1%, driven mainly by accelerating revenue of its cellular business and cost controls.
Consolidated service revenue increased approximately 10% YoY to Baht 24.0 billion as a result of continued solid double-digit growth of cellular and consumer broadband revenues. The Group’s higher operating leverage resulted in 37.8% YoY EBITDA growth to Baht 8.7 billion and its margin increasing to 36.1%.
Consolidated net income was flat at a loss of Baht 1.2 billion in 2Q17 as the core performance improved significantly to offset the loss of a one-time gain in 1Q17 related to the valuation of True's investment in DIF.
President (Co) for Commercial Mr. Vichaow Rakphongphairoj said, “We are pleased with the continued strong growth of the Thai telecommunications industry led by True’s cellular business. True Group’s network superiority with its multiple frequencies, value-driven convergence propositions and high-quality content remain our key competitive advantages to stay ahead of the competition. In the second quarter, TrueMove H continued to outperform the industry with service revenue growth of 17.4% YoY, compared to 3.8% YoY growth of the other two major players combined, while TrueOnline secured its leadership with consumer broadband revenue growing in a solid double-digit rate from the previous year. Capitalizing on these strengths, the Group’s digital platform and Big Data technology will further amplify our revenue and subscriber base as our offerings fulfill consumers’ preferences and lifestyles in this digital age. These together with effective cost controls make us confident of a stronger second half”
President (Co) for Operations Mr. Adhiruth Thothaveesansuk said, “Our ongoing commitment to continuously improve network quality both in terms of coverage expansion and capacity densification has been recognized internationally as TrueMove H received two prestigious awards, the 2017 Asia Pacific LTE Service Provider and Mobile Service Provider of the Year at the 2017 Asia Pacific ICT Awards held in Singapore. TrueMove H leads the industry with its world-class standard 4.5G services leveraging on 3CA (Carrier Aggregation) and 4X4 MIMO (Multiple Input and Multiple Output) technologies with the world’s largest number of 4T4R (4-Transmit-4-Receive) totaling 7,000 base stations. We also expanded the fiber and WiFi footprint nationwide while successfully upgrading technology and speed to our broadband customers. These, combined with a full range of quality content with enhanced picture and sound quality as well as our privilege programs, improved customer satisfaction on our offerings while assuring solid and sustainable growth of our businesses.”
TrueMove H’s top network position has been a key driver for its outstanding revenue and subscriber growth. In 2Q17, it continued to gain both postpaid and prepaid customers and expanded the total subscriber base to 26.2 million, adding another 424k net subscribers compared to a net decrease of 880k subscribers for the other two major industry players combined. This incremental scale together with significant growth of non-voice revenue drove TrueMove H’s service revenue up 17.4% YoY to Baht 16.8 billion and value market share to 26.0% in 2Q17. TrueMove H’s recent collaboration with TrueID, combining digital content including movies, TV, music, sports, lifestyles and exclusive privileges in one application, addresses consumers’ rising trend towards digital consumption which will further expedite TrueMove H’s market share gain going forward.
TrueOnline’s fiber offerings continued to gather momentum with consumer broadband revenue increasing 13% from a year earlier while increasing True Group’s convergence subscriptions and customers’ stickiness. The business lifted its broadband Internet revenue to Baht 5.6 billion and subscriber base to 2.96 million. Its further expansion to new territories, both upcountry as well as in the Bangkok and Metropolitan Area, is expected to stimulate the Group’s revenue growth and the country’s broadband penetration.
TrueVisions’ successful penetration into the mass segment and the strengthening of its premium offerings with world-class quality content fueled service revenue up 4% YoY to Baht 3.1 billion in the second quarter of 2017 with a total customer base of 4.1 million. The business will retain focus on providing the best viewing and HD experience as well as bundling a wide variety of popular content with True Group’s digital platform, including TrueID and True TV box which offer online streaming content, to serve the needs of customers in every lifestyle.
