AIS’s revenues, profits down year-on-year, up on previous quarter

15 May 2007

Thailand’s largest mobile operator by subscribers, Advanced Info Services (AIS), recorded net income of THB3.984 billion (USD121 million) on revenues of THB23.498 billion in the first three months of 2007. Profit and turnover in the quarter were down year-on-year by 24.7% and 4.8% from THB5.290 billion and THB24.688 billion respectively in 1Q2006, but rose by 25% and 5.2% respectively from a net income of THB3.187 billion on revenues of THB22.328 billion in 4Q2006. The Shin Corp subsidiary attributed the fluctuations largely to a fall and subsequent rise in service revenues. In 1Q2007 total revenues consisted of 83% service revenues and rentals and 17% handset sales and SIM cards. AIS pays state-owned fixed line incumbent TOT 24.7% of its service revenues, under its build-transfer-operate (BTO) concession. Service revenues declined 8.3% year-on-year in the period to THB19.493 billion, as average tariffs and ARPU in 1Q06 were relatively high. On the other hand, service revenues improved 6.4% in 1Q07 from the previous quarter on the back of strong subscriber growth, driven by various new promotions and relatively stable tariffs. In the first quarter AIS added 1.57 million net new customers, of which 1.18 million were pre-paid and 38,000 were post-paid users, to reach a total of 21.1 million subscribers at 31 March, 87.7% of which were pre-paid and 12.3% on contracts. The total customer base grew by 8% from the end of 2006 and 27% year-on-year. As of 31 March 2007 AIS had total debts of THB28.402 billion, down from THB33.149 billion at the end of 2006, due to retirement of THB3.75 billion of long-term debentures and repayment of THB1 billion of short-term borrowing.

Thailand, Advanced Info Service (AIS)