True proves worth in 2007

28 Feb 2008

Thai full-service telco True Corp returned to profit in 2007 after two consecutive annual losses, helped by a foreign exchange gain and interconnection revenues. Consolidated net income of THB1.7 billion (USD53 million) turned around a THB4 billion loss a year earlier, and easily beat a consensus analyst forecast of THB798 million from a Reuters poll. Group revenues rose 19.7% to THB60.5 billion in the year, boosted by the launch of a new interconnection regime between private operators. Conversely, operating expenses climbed 4.6% to THB54.2 billion partly due to the interconnection fees, although they were partly offset by reductions in depreciation and amortisation expenses. True enjoyed a THB2.4 billion foreign exchange gain in 2007, up by THB500 million compared to 2006, due to the Thai baht strengthening against the US dollar. Mobile unit True Move’s operating revenues accounted for roughly half of True Corp’s total yearly turnover, and the cellco added 4.5 million net new GSM customers in the twelve months to reach a total of 12.1 million at the end of December, which it claims gives it a 23% share of the market. True’s broadband internet subscribers increased by 24% to 548,000 at the end of the year, when it also claimed 949,000 cable TV subscribers, up 52% year-on-year.

Thailand, True Corp, True Move