AIS 4Q results boosted by interconnection, but full-year profit falls flat

20 Feb 2008

Advanced Info Services (AIS), Thailand’s leading cellco by customers, has reported a 61% year-on-year rise in net income to THB5.13 billion (USD163 million) in the three months to the end of December 2007, as it switched to a new interconnection framework under which it received fees directly from its rivals. AIS agreed bilateral interconnection with second-ranked mobile operator DTAC and third-placed True Move in the first half of last year, but only began booking the charges in the fourth quarter, earning it around THB2.5 billion in revenues. It also attributed the improvement to strong subscriber growth and reduced price competition, with tariffs for new customers having gradually increased during 2007. However, the company’s full-year net profit was up only 0.2% year-on-year to THB16.3 billion. AIS added 901,000 net new subscribers in the fourth quarter, up from 513,000 in 3Q, to give it a year-end total of 24.1 million, an annual rise of 23%. Nearly 90% of the Shin Corp subsidiary’s user base are pre-paid, and pre-paid monthly ARPU in October-December rose by THB5 quarter-on-quarter to THB227.

Thailand, Advanced Info Service (AIS)