True Corp’s net loss due to financial costs

14 Nov 2011

Thai quadruple-play operator True Corp (including True Move) has reported a year-on-year swing to a net loss of THB1.4 billion (USD45 million) in the third quarter of this year, compared with net profit marginally above THB1 billion in July-September 2010, which it blamed largely on higher financial costs. Total revenues across True’s fixed line, broadband, mobile and pay-TV operations climbed 19% to THB17.9 billion in Q3 2011, up from THB15 billion a year earlier; however, total costs jumped by 25% year-on-year to THB12.9 billion, up from THB10.4 billion, and financial expenses in particular leapt from THB40 million to THB2.3 billion in the three-month period. True Move (including new 3G venture True Move H) saw revenues excluding interconnection in July-September 2011 rise by 31% year-on-year to THB7.4 billion, although high costs of expansion and launching new commercial 3G offers, via its takeover of Hutch Thailand and partnership with state-run CAT Telecom, meant that cellular EBITDA dropped by more than 7% y-o-y to THB1.2 billion. Competition for new mobile subscribers was tight in the third quarter, with True adding a net 36,000 customers in three months to take its total to 18.6 million, while 47,000 fixed broadband quarterly net additions increased its user base to 1.3 million at the end of September 2011.

Thailand, True Corp, True Move