TRUE RECORDS EBITDA AND SERVICE REVENUE GROWTH WITH STRONG TRUEMOVE PERFORMANCE
BANGKOK, November 16 2009: Reporting its performance for the three months to September 30, 2009, True Corporation PLC (SET: True) saw recovery from seasonal lows in Q2 with Group service revenue and EBITDA growing further. TrueMove performed especially well, both Q-on-Q and Y-on-Y, while excellent market response to a recent Baht bond issue improved the Group’s credit profile.
Consolidated Q3 service revenue, excluding interconnection charges (IC), was up 2.4% Q-on-Q to Baht 13 billion mainly on seasonal upturn driven by TrueMove and TrueVisions. EBITDA increased 0.9% to Baht 4.8 billion after stripping out a one-time item in Q2 relating to TrueVisions content costs. On a Y-on-Y basis service revenue (excluding IC) increased 1.6% with growth at TrueMove and TrueOnline. Higher revenues and continuing success in controlling net IC payments drove strong EBITDA gains (up 9.8%) compared to the year before. Bottom line profit was Baht 123 million.
True President and CEO Suphachai Chearavonont said, “We can draw many positives from our third quarter performance. TrueMove did very well driven by strong postpaid and non-voice growth as well as a recovery in International Roaming (IR). Broadband saw strong revenue gains with net adds picking up considerably while we have also recently been given the green light to commence paid advertising on TrueVisions. This will generate increased content and variety for viewers while gradually developing into an important new revenue stream.”
“Despite the challenging operating environment throughout the year we remain on track to achieve our 2009 revenue target and to continue to successfully control costs. For the remainder of the year, TrueMove should benefit from improving International Roaming market conditions while the strong growth of postpaid and non voice should continue. Furthermore, the launch of Thailand’s fastest consumer Broadband service at 16Mbps bundled with TrueVisions will help ensure customer loyalty and further reinforce our leadership position.”
TrueMove service revenue (excluding IC) increased 4.6% from Q2 to Baht 5.9 billion on non voice growth and recovery in IR. EBITDA was up 17.7% to Baht 1.8 billion mostly on higher revenue as well as IC and cost control. On a Y-on-Y basis revenue (excluding IC) grew 6.8% mostly from the postpaid segment while EBITDA was up strongly (32.3%) on higher service revenue and net IC payment reduction.
Postpaid performed well with service revenue up 6.7% Q-on-Q and 22.5% Y-on-Y driven by convergence and sales of smart phones such as the iPhone 3G, 3GS and BlackBerry. Non-voice revenues grew 15.5% Y-on-Y from increasing consumer demand for data consumption while Academy Fantasia-related content contributed to the 13.5% Q-on-Q growth. Despite the market nearing saturation there were 117,559 subscriber additions for the quarter, taking the total subscriber base to 15.4 million.
TrueOnline service revenue rose slightly Y-on-Y to Baht 6.5 billion as revenue from Broadband, convergence and new businesses such as International Direct Dialing (IDD) and True’s data gateway offset fixed-line declines. Broadband service revenue increased 11.7% Y-on-Y to Baht 1.4 billion with strong Q3 net adds of 17,955 taking the subscriber base to 665,000.
TrueVisions saw subscriber numbers rise 25.3% from a year ago to 1.64 million while the beginning of the new Premier League (PL) season helped boost premium subscribers following seasonal lows in Q2. The proportion of mass market subscribers upgrading to higher packages (upselling) grew to 36.8% from 26.3% the year before. Service revenue increased 4.2% Q-on-Q to Baht 2.3 billion.
True’s debt level continues to decrease with Baht 4.9 billion repaid over the first nine months. The net debt-to-EBITDA ratio fell further, to 2.9 times compared with 3.6 times a year ago. True Group CFO Noppadol Dej-Udom said, “True’s financial position continues to improve. Our recent Baht bond issue at TrueOnline was a huge success, raising Baht 7 billion. With refinancing at TrueOnline now complete we will turn our focus to strengthening other segments, especially TrueMove and TrueVisions.”
Mr Suphachai stressed True’s support for the upcoming auction of 3G on 2.1GHz licenses. “We fully intend to compete for a license and have a number of funding options available including a cash balance as of Q309 of over Baht 10 billion. We see considerable potential for 3G and are in prime position to provide the best 3G experience through our convergence platform, content, networks and services.”
About True Corporation Plc
True Corporation Public Company Limited is Thailand's only fully-integrated communications service provider, and leader in solutions for convergence lifestyles. True provides consumers, small and medium enterprises, and corporations with a full range of voice, data and multimedia solutions customized to meet their needs. True is the largest wireline service provider in Bangkok, the largest broadband provider in the country and a major player in the wireless, cellular and Internet markets. Principal subsidiary companies in the True Group include True Visions, Thailand's dominant pay television operator, and True Move, a major mobile phone service provider. True gives consumers the freedom to live different lifestyles, by providing them with the power to communicate, access knowledge, information and entertainment, as well as carry out online activities whenever, wherever, and how they like under five product and service categories: TrueMove, TrueOnline, TrueVisions, TrueMoney, and TrueLife. For more information, please visit:
http://www.truecorp.co.th