DTAC ups capex guidance for 2015 to pursue mobile ambitions
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TOTAL Access Communication (DTAC) has revised upwards its capital-expenditure guidance for this year to between Bt18 billion and Bt20 billion from the previously announced minimum of Bt14 billion as part of its stated ambition to become the leading mobile
According to its filing to the Stock Exchange of Thailand last Friday about its first-quarter performance, most of the revised capex will be used to enhance the capacity of its fourth-generation service and to expand the coverage of its 3G network to 95 per cent of the population. That is wider than its existing 2G network coverage.
In its February filing to the SET about 2014 performance, DTAC set capex guidance for 2015 at a minimum Bt14 billion, adding that it was prepared to make more investments if required to continue to build its position as a leading Internet provider.
DTAC’s share price yesterday closed at Bt87, up 6.75 per cent.
DTAC has maintained the guidance of 2015 service revenue, excluding from interconnection charges, to grow by low single digits.
According to its filing, competition in the mobile telecom market this year is expected to continue as operators are likely to focus on acquiring smartphone users to capture growth from data services, monetising 2.1-gigahertz networks, and getting ready for coming concession expirations.
Competition is likely to come from handset bundling campaigns and offers of low-cost 3G/4G phones to stimulate adoption of these technologies, while data monetisation is still challenging for the industry.
DTAC’s net income in the first quarter was Bt2.292 billion, up 21 per cent quarter on quarter, on EBITDA (earnings before interest, taxes, depreciation and amortisation) growth and lower depreciation and amortisation expenses. However, net income decreased 31 per cent year on year, because of lower EBITDA and higher D&A expenses year on year.
Its total revenue in the quarter was Bt22.884 billion, an increase of 1.9 per cent year on year, driven by strong handset sales and growth in mobile data revenue, offset by lower income from voice services.
