Consolidated True Corp service revenue jumps 11.5 per cent in Q2
True Corporation maintained its profitability while reporting healthy revenue growth for the second quarter of 2015, said Suphachai Chearavanont, the company's president and chief executive officer.
He said TrueMobile’s non-voice revenue posted remarkable growth year on year, while TrueOnline’s broadband Internet performed well, and advertising drove TrueVisions revenue.
Consolidated service revenue surged 11.5 per cent year on year to Bt18.2 billion in the second quarter thanks to strong growth in all key segments, mainly for the third- and fourth-generation telecom businesses.
EBITDA (earnings before interest, taxes, depreciation and amortisation) expanded 15.9 per cent to Bt5.5 billion on solid revenue growth and gains from transferring new towers to the True Telecommunications Growth Infrastructure Fund (TRUEIF).
True Group reported total net profit of Bt1.3 billion in the second quarter, compared with a loss of Bt1.7 billion in the same period last year. This substantial improvement was driven by higher operating profits, a sharp reduction of interest expense after the recapitalisation last year, and the completion of depreciation charges for 2G network assets.
Suphachai said True’s focus on providing best-value offerings to customers through enhanced telecommunication networks, using advanced technologies, and attractive convergence propositions remained the group’s key strengths to stay ahead of the competition. This resulted in impressive revenue growth for the group despite the traditional low season in the second quarter, particularly in the cellular business, whose service revenue jumped 18.7 per cent year on year compared with the overall industry’s growth of 2.9 per cent.
"We expect core earnings to grow further in the second half of the year as True Group is in a prime position to capitalise on accelerating data growth and rising consumption of media content given our fully diversified platform with a perfect combination of 4G, 3G, Wi-Fi, and fibre broadband, as well as superior and exclusive content from TrueVisions," he said.
TrueMove H plans to provide 4G and 3G coverage across all 77 provinces as well as attractive mobile packages bundling with 4G and 3G devices.
The group says its success in facilitating this explosive demand for data usage resulted in robust growth of its non-voice revenue. This drove True Mobile Group’s revenue share in this market to 18.8 per cent in the second quarter, up from 16.3 per cent in the same period of last year and from18.4 per cent in the first quarter of this year.
