AIS’s profit continues to slide

15 Aug 2007

Thailand’s largest mobile operator by subscribers Advanced Info Services has posted an 11.2% year-on-year fall in second quarter net profit to THB3.66 billion (USD117 million), down from THB4.13 billion a year earlier and THB3.98 billion in the first quarter. The GSM operator, which reported a total of 22.7 million subscribers at the end of June 2007, partly attributed the drop in earnings to the fierce price war in the sector. First-half net profit was THB7.64 billion, down 18.8% from THB9.41 billion in the same period of 2006. AIS president Wichien Mektrakarn said profit fell because of increased advertising costs, a marketing strategy to distribute free SIM cards, and bad debt. He added that the company spent almost double the amount on advertising in the period than it had in the previous year.

Thailand, Advanced Info Service (AIS)