Wednesday, February 26, 2020

True Group records Bt385 million net profit in Q3

Nov 15. 2018
TRUE Co-president Vichaow Rakphongphairoj
TRUE Co-president Vichaow Rakphongphairoj
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By The Nation

True Corporation PLC (TRUE) recorded Bt385 million net profit in the third quarter of 2018 bolstered by accelerating service revenues with double-digit YoY growth in both mobile and broadband internet businesses, the company said in a press release issued on Wednesday.

True Group’s financial performance continued to improve in the third quarter of 2018 as service revenue reached a record high of Bt26.3 billion. The growth of 7.3 per cent YoY or 10.3 per cent YoY excluded contribution from the fixed-line phone concession, driven mainly by both cellular and broadband growth, while cost controls remained intact, the company said. 

Excluding impact from sales of assets to the Digital Telecommunications Infrastructure Fund (DIF), EBITDA grew 13.9 per cent from the previous year to Bt10.2 billion with margin increasing to 38.4 per cent in 3Q18 compared to 36.5 per cent in 3Q17. Consolidated net profit was Bt385 million, significantly improving from a loss of Bt691 million in the same period last year.

Co-president Vichaow Rakphongphairoj said: “True Group continued to deliver core earnings improvement and profit in 3Q18. This solid performance was driven by accelerating service revenues thanks to our successful customer-driven strategy and tremendous efforts on enhancing network and service levels while cost and productivity measures continued to improve. 

“TrueMove H was a strong Q3 performer as it continued its stellar growth momentum with double-digit service revenue growth YoY while revenue market share surged to 28.9 per cent, the highest quarterly market share gain since 2Q17. At the same time, TrueOnline’s expanded FTTH footprint and 1Gbps offerings continued to drive strong double-digit YoY growth of broadband revenue and subscribers. 

“Given our strengths on network, convergence, versatile content and digital offerings as well as engaging privilege campaigns highlighting benefits of being True’s loyal customers, we are confident to carry on the upward profitability trend.”

Co-President Dr Kittinut Tikawan said: “This is clearly a positive quarter with record revenue and core profit growth, pinpointing a significant step forward for True Group’s performance. Our mobile business is now fully competitive in the under-penetrated areas of Thailand where there is a plenty of room to attract additional subscribers thanks to our concentrated efforts to improve network density in these areas during the first half of the year. 

“Meanwhile, the FTTH network upgrade and 1Gbps offerings have received excellent market response further strengthening TrueOnline’s broadband leadership. The regionalised marketing campaigns with dedicated teams and packages that match demands of each target group have proven successful and this quarter is just the beginning of our progression. 

“We believe the accelerating momentum should sustain in upcoming quarters as more and more consumers experience and recognize our exceptional services while added benefits such as TrueID and True Points from our privilege programs will push customer engagement higher.”

TrueMove H outstripped the mobile industry in the third quarter of 2018 with service revenue growth of 10.1 per cent YoY and 2.7 per cent QoQ to Bt18.9 billion contrasting with the YoY and QoQ drop for both of its major competitors. 

This was the 26th consecutive quarter in which TrueMove H’s revenue grew faster than the market, and as a result, TrueMove H’s value market share jumped to 28.9 per cent in 3Q18, the highest quarterly market share gain in six quarters, the company said. 

The major network upgrade and localised marketing campaigns particularly in Northeast as well as synergy among True Group and business partners contributed to TrueMove H’s continued above-industry growth. It posted 678k net adds during the quarter and grew subscriber base to 28.8 million.

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