Bangkok--6 Aug--AIS
AIS reported 2Q19 net profit of 8,234 million Baht (excluding one-time item), demonstrating strong growth for four consecutive quarters. AIS's total revenue grew 5.8% compared to last year mainly due to the strong position in mobile business maintaining the largest market share and AIS Fibre posting continuing growth. The expansion into enterprise segment was strongly focused, led by CSL (previously CS Loxinfo). The 5G use cases were continued to be conducted across the country. AIS reiterated a dividend policy of minimum 70% of net profit and has announced to pay an interim dividend of 3.78 Baht/share on 3 September 2019.
Mr. Somchai Lertsuthiwong, Chief Executive Officer of Advanced Info Services Public Limited Company or AIS, said, "Today, not only telecom companies but also other businesses need to transform themselves to cope with digital disruption. Key elements including professionalism, planning, and employee competency are very crucial to sustain the impact from external forces. In 2Q19, AIS as the Digital Life Service Provider continued to work relentlessly to ensure that we could deliver best products and services to our customers. We always look for new opportunities in digital businesses and collaborate with other industries while maintaining good rapport with every stakeholder."
In 2Q19, AIS reported its continuing growth in revenue and profit with a total revenue increasing 5.8% from last year. The improving competition in mobile market resulted in our ARPU (Average Revenue per User) rising to stand at 263 Baht/month. Therefore, overall mobile business grew 5.3% compared to last year. AIS secures its leadership possessing 41.5 million mobile numbers nationwide. 4G users are recorded at 66% of total subscriber base while data usage rising from 8.9 gigabytes last year to 11.5 gigabytes in this quarter.
AIS Fibre performed well with 26% revenue growth as a result of superior network and excellent service. More importantly, AIS strategy in Fixed-Mobile Convergence attracted quality customers with total subscribers currently reaching 855,400 and coverage present in 57 key cities. AIS Fibre still maintains its target to achieve 1 million subscribers this year. In summary, with ongoing cost control, AIS posted a net profit in 2Q19 of 8,234 million Baht (excluding one-time item), growing 2.9% from last year and 8.1% from last quarter. This has been a fourth consecutive quarter of net profit growth. The given guidance of mid-single digit revenue growth for the full year is maintained and an EBITDA margin stable from last year (around 42-44%) with targeted investment of Bt20-25bn to enhance 4G and fixed broadband.
In addition, AIS has been putting crucial elements in places in preparation for 5G technology:
Enhance competency in 5G technology through collaborations with multiple partners including government agencies, companies, and educational institutes across the country for further researches and trials.
2) Allocated 700MHz spectrum license for 5G development. Such operation will be able to start in October 2020. The 700MHz spectrum, as a low-frequency bandwidth, is a standard 5G band that inherits outstanding wide coverage. This is expected to support the success of 5G services in the next 2-3 years.
3) Expand into enterprise market as a result of the synergy between AIS Business and CSL, which holds expertise in becoming the one-stop and full-scaled ICT service provider. We focus on 3S strategy including Solutions, Services, and System Integration. CSL is also competent in serving end-to-end solutions especially in data center and cloud service for corporate business.
4) Continually develop IoT (Internet of Things) to enhance competency of Thai business. For instance, AIS works with Thai Wiwat Insurance company to implement NB-IoT Motor Tracker, first time in car insurance operation. We are determined to master IoT services for the benefits of corporate customers in every industry.
"There are more important things than business success. AIS as a member of private sector recognizes its social responsibility in jointly moving Thailand forward and enhancing the living quality of Thai people in the digital world. We introduced Aunjai Cyber program to offer cyber protection and education to children as well as adults under the concept of "Be a Part of Network." Aunjai Cyber program is proud to present world-renown DQ: Digital Intelligence Quotient as an important learning tool to teach children how to be responsible digital citizen. AIS Academy for Thais: To the Region, a symposium offering thought provoking and knowledge sharing for businesses as well as individuals, received high praise in Bangkok and Chiang Mai and is now on the way to Khon Kaen scheduled in mid-August with no entrance fee," Mr. Somchai concluded.
*All financial numbers are based on Pre-TFRS 15.*