True blue? Revenues up but losses widen

16 Nov 2006

Thai broadband market leader True Corp saw its third quarter revenues rise but net losses widen. Total 3Q turnover for the fixed line, mobile and internet provider rose to THB12.9 billion (USD354 million), up 25.5% year-on-year. EBITDA rose by 10.6% to THB 4.2 billion but net losses increased to THB1.3 billion, compared with THB732 billion previously. True’s losses excluding expenses related to the acquisition of pay-TV operator UBC came to THB745 million, compared with a like-for-like loss of THB599 in 3Q 2005. Revenues at mobile division True Move recovered from fierce price competition in the preceding quarter, rising by 16.7% quarter-on-quarter to THB5.7 billion (up from THB4.4 billion in 3Q05), whilst mobile EBITDA grew to THB1.3 billion from THB1.1 billion a year ago. The private sector operator signed up 1.4 million mobile subscribers in the quarter, a 168% increase in net additions from 2Q, ending September with a total of 6.8 million cellular customers. It claimed that its market share was boosted from 15.1% to 18.8%.

It was a different story at True’s fixed line unit as revenues fell 18.8%, although it managed net subscriber additions of 9,945 in the three-month period, it claims due to cross-marketing with broadband and Wi-Fi services. Consumer broadband revenues rose to THB899 million, driven by the addition of 43,868 high speed internet customers in the quarter, resulting in a total of 412,742. Monthly broadband ARPU rose slightly to THB724.

Thailand, True Corp, True Move