True performance led by mobility and Visions

15 Nov 2007

Thai full-service telco True Corp has reported its operating and financial results for the three months end 30 September 2007, with highlights being a record 2.1 million net customer intake at its True Move GSM mobile unit, and continued success in cross-selling its pay-TV service, TrueVisions. True Move subscribers reached 11.2 million at the end of the quarter, with the company claiming to have taken a 70% share of the country’s total quarterly mobile net adds, and 35% of net adds in the first nine months of the year, ahead of a full-year target of 33%; it claimed that its market share of total subscribers stood at 22.7% at the end of the period. True’s broadband internet division added 22,000 subscribers in three months to reach a total of 526,000, driven by the continued popularity of its ‘SUPER hi-speed’ ADSL package, including bundling options with True Move and TrueVisions, which had attracted 282,000 subscribers by the end of September. TrueVisions added 28,000 TV subscribers in the third quarter of 2007 (up from 1,200 in Q2) to reach 597,000 in total. A package offering pay-TV services to True Move GSM subscribers maintained momentum with total customers reaching 318,000. If these users are included, TrueVisions’ total subscriber base is boosted to over 900,000. In Q3, fixed line telephony subscribers fell by 9,000 to 1.97 million, with the decline all in residential lines, due mainly to the end of an installation fee waiver promotion.

True’s consolidated group service revenue for the third quarter was THB15.2 billion (USD486 million), down 3.5% quarter-on-quarter (due mainly to decreased interconnection earnings) but up 20.3% year-on-year (mostly attributable to True Move’s contribution). Group net profit for 3Q07 was THB1.2 billion compared with a net loss of THB595 million in the preceding quarter and a net loss of THB1.2 billion in the year-ago quarter. The improvement was largely due to a fall in depreciation expenses. During the first nine months of 2007, True repaid THB4.7 billion in long term loans. The company’s balance sheet continued to improve, with the ratio of consolidated net debt to EBITDA falling to 3.7:1 for January-September, compared with 4.6:1 in FY06.

Thailand, True Corp, True Move