FRIDAY, March 29, 2024
nationthailand

AIS trims 2015 revenue growth forecast amid weak economy

AIS trims 2015 revenue growth forecast amid weak economy

Advanced Info Service (AIS) has revised down the guidance on the growth of 2015 revenue (excluding network interconnection revenue) to around 3 per cent year on year from the previously estimate of 3-4 per cent, in line with the weak economic outlook and

According to the company’s filing to the Stock Exchange of Thailand this week about its second-quarter performance, AIS has also revised down its capital-expenditure forecast for this year to Bt36 billion from the previously planned Bt40 billion, as payments for some projects are deferred, and some information-technology projects and shop-expansion projects are delayed.

AIS said it expected the economy to recover slowly during the remainder of the year. Consumers are likely to remain cautious on their spending. The company also expects continued high competition in the mobile telecom market.

Net profit in the second quarter was Bt9.849 billion, an increase of 16 per cent year on year.

Last year, AIS’s service revenue, excluding interconnection revenue, stood at Bt117.99 billion, up 1.2 per cent from 2013.

A telecom analyst cut his estimate of AIS’s pre-exceptional profit this year by 5 per cent to Bt38.812 billion and that of next year by 6.7 per cent to Bt43.546 billion, because of the expected intense competition.

The analyst said that although he expected the market competition to intensify in the current second half, with a drop in AIS regulatory fees as a key growth driver, he expected AIS to continue to grow its EBITDA (earnings before interest, taxes, depreciation and amortisation) in the next 12-18 months.

In July, Total Access Communication (Dtac) revised down its 2015 guidance on the growth of service revenue (excluding interconnection revenue) to reflect market competition and its soft performance in the first half. It lowered its full-year forecast for service revenue to slightly below the 2014 level. Its service revenue last year was Bt68.275 billion.

It has maintained capital-expenditure guidance this year at between Bt18 billion and Bt20 billion for strengthening its third- and fourth-generation network capacity and coverage nationwide.

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