TRUE REPORTS NET PROFIT AND ACCELERATING REVENUE IN 1Q16 FOLLOWING THE SUCCESSFUL SPECTRUM ACQUISITIONS
BANGKOK, May 13, 2016 – True Corporation PLC (SET: TRUE) recorded outstanding revenue growth for the first quarter of 2016 and a net profit resulting from improved operational results and the mandatory annual adjustment of the value of its investment in DIF. The strong revenue growth momentum is further expected throughout the rest of the year following the official launch of TrueMove H 4G Plus service with superior speed and nationwide network coverage.
Consolidated service revenue surged 15.6% YoY to Baht 20.8 billion in 1Q16due to growing revenues in all three segments, mainly an exceptional performance of the cellular business for both postpaid and prepaid markets. This solid revenue growth fuelled EBITDA growth of15.7%YoY to Baht 5.7 billion excluding the 2015 gain from transferring towers to the Digital Telecommunications Infrastructure Fund (DIF) for a meaningful performance comparison.
True Group reported a net profit of the parent company totaling Baht 1,968 million in 1Q16, improving from a profit of Baht 1,569 million in the same period last year due to accelerating revenue and a recognition of its investment in DIF, outpacing higher expenses related to network and service expansion. DIF as an infrastructure fund entity is required to be periodically measured at fair value according to the SEC regulation. In this first quarter, independent financial advisor commissioned by SCBAM conducted the asset re-appraisal, resulting in DIF’s incremental investment value. As a result, True Group recognized this incremental value in proportion of its 28% investment in the fund totaling Baht 2.9 billion in 1Q16.
True President and CEO Mr. Suphachai Chearavanont said, “True Group continues to ride the strong momentum of our top network position while responding to the fast-growing consumption of wireless and wired broadband services. The fact that our revenue accelerated with cellular value share jumping to 22% in this first quarter even prior to the official launch of the 900MHz service makes us confident of an even stronger performance throughout the rest of the year. The Group’s success in rapidly growing revenues and attracting an increasing number of both postpaid and prepaid subscribers reinforces consumer confidence in our brand and network superiority. This, together with our determination to providing innovative and best-value offerings will serve as an important foundation for the Group’s sustainable growth.”
TrueMove H’s key strengths in network quality, network coverage, multiple frequencies, and the largest bandwidth position it well ahead of the competition. The Group’s cellular service revenue accelerated 23.7% YoY to Baht 13.1 billion amid the declining trend of the other major players, resulting in a surge of its value market share to 22% in the first quarter of 2016, compared to an average of 19% in the previous year. Strong acquisition seen in both postpaid and prepaid segments, expanding TrueMove H’s subscriber base to 20.4 million at the end of 1Q16.
TrueOnline’s broadband Internet sustained healthy performance both in terms of revenue and subscriber growth given overwhelming response to the fiber broadband packages while a further expansion to upcountry also drove strong broadband acquisition, pushing its subscriber base to 2.5 million with an upward ARPU of Baht 665. During the quarter, TrueOnline continued to extend its broadband network reach, now covering 6.8 million homes passed nationwide.
At TrueVisions, service revenue grew 5.8% YoY to Baht 3.0 billion as a result of rising contributions from the Group’s music entertainment business. Meanwhile, TrueVisions continued to enjoy mass market success with 163,682 net additions in Q1, boosting its total customer base to 3.2 million. The business is determined to enhance consumers’ viewing experience through more quality content, interactive features and live broadcasting of popular international sports to further improve its premium subscriber base and revenue.
True Group CFO Noppadol Dej-Udom said, “We are pleased with True Group’s strong financial performance in this first quarter with continued profit and accelerating revenue growth, which was directly driven by our investment in expanding networks; a major turning point to rapidly growing our scale. This, together with the upcoming capital increase, will be keys for strengthening our financial position and profitability.”