True Corp predicts merger will save 22 billion baht while benefiting users


True Corp CEO Manat Manavutiveth says the company’s merger with Total Access Communications (Dtac) earlier this year will result in cash flow savings of about 22 billion baht from 2026.

The merged company has become the market leader in terms of mobile subscribers, with 33.8 million TrueMove H users and 21.2 million Dtac members.

Consumer rights bodies have complained the deal creates monopolistic conditions that will hurt users in the long run.

True Corp expects its new integrated platform to drive growth of EBITDA (earnings before interest, tax, and amortisation).

Deputy CEO Sharad Chandra Mehrotra said the “single grid network” would be the core of the merged company’s operations, expanding and improving signal coverage for customers. The single grid project is due for completion in 2025.

The company said sustainable growth would be driven by revenue generation from 5G services, upselling strategies, cross-selling related products or services with special offers, and enhancing premium customer service with continuous digital services.

Over 100 factors would generate a value benefit of 250 billion baht from business consolidation, said Nakul Sehgal, the head of True's financial executive team.

The main expenditure for the consolidation will occur by 2024, resulting in expected positive net benefit from business consolidation in 2025 and profitability.

EBITDA is expected to rise 11 percentage points in proportion to service revenue by 2027.

TRUE also plans to reduce its capital expenditures by half after network consolidation.