True’s 2Q losses widen to USD104 million

18 Aug 2008

Full-service telco True Corp has reported that one-off costs, lower group revenues and weak financial performance at its mobile unit True Move were all contributing factors to a consolidated net loss which widened to THB3.505 billion (USD104 million) in the second quarter, compared with the THB716 million loss in the same period a year earlier. The bottom line result was affected by a foreign exchange loss of THB2.5 billion. Revenues in the three months ended 30 June 2008 fell by 2.5% year-on-year to THB15.094 billion and EBITDA dropped from THB5.053 billion in 2Q07 to THB4.296 billion in the most recent quarter. Net loss from ongoing group operations was THB186 million compared with a net gain of THB18 million a year earlier. True Move service revenue was down 7.5% y-o-y to THB5.5 billion, which the group attributed to intense competition in the Thai mobile market. However, the GSM operator added more than 507,000 new subscribers in April-June (achieving a growth rate up 38% quarter-on-quarter) to take its customer total to 13 million. Fixed line division True Online reported that its broadband internet subscriber base passed 600,000 at the end of June, after signing up a net 31,000 users in 2Q, its highest net adds in four quarters.

Thailand, True Corp, True Move