DTAC 2Q profit plunges 65% on one-off effects, revenues slide in weak economy

23 Jul 2009

Digital Total Access Communications (DTAC), Thailand’s second largest mobile operator by users, has reported a 65% year-on-year drop in net profit to THB1.37 billion (USD40.4 million) in the three months to the end of June 2009, down from THB3.91 billion in the corresponding period of 2008. The decrease in net income was mainly attributed to a THB2.4 billion one-off payment last year from minor operator Digital Phone, part of larger rival Advanced Info Service (AIS), for using DTAC’s infrastructure. The net profit figure was down 7% quarter-on-quarter. Revenues in 2Q09 were THB16.0 billion, down 3% quarter-on-quarter as earnings from international roaming and international direct dial (IDD) calls declined sharply, which the company blamed on seasonality and the ongoing economic downturn, whilst EBITDA dropped by just 1% q-o-q, due, DTAC said, to stringent cost controls. CEO Tore Johnsen said: ‘Although total revenue declined modestly in the second quarter, we started to see some results from the cost efficiency programmes… We will continue to implement more programmes as the outlook for the overall economy remains bleak.’

Thailand, Digital Total Access Communication (DTAC)