Bangkok--15 Aug--True Corporation
True Corporation PLC (SET: TRUE) – True Group continued to report improving core business performance and profitability in the second quarter of 2019 with a profit of Baht 1.8 billion excluding the one-time impact from an amendment of the Labour Protection Law related to employee benefits. This was achieved as service revenue increased to Baht 26.2 billion, driven mainly by TrueMove H's above-industry service revenue growth of 6.3% YoY, while cost optimization programs continued to deliver positive results affirming the Group's confidence for the full-year profit guidance.
Group President (Co) Dr. Kittinut Tikawan said, "True Group has shown a consistent trend of core earnings improvement and profit in 2Q19 as the quality of products and services remain our core foundation that continues to enhance high-quality subscriber growth and customer engagements. TrueMove H, in particular, outshined the industry and was the only player in the market that reported positive net adds in the second quarter driving YoY revenue growth of 6.3%. The 1Gbps and FTTH network upgrade combined with a wide range of digital content and offerings as well as engaging customer privilege platforms clearly differentiate True Group and solidify our leadership positioning. We are committed to building a comprehensive ecosystem that serves the increasing needs of consumers and businesses in this cashless and digital era. These, together with improving synergy with our partners should further accelerate our growth and improve financial performance."
Group President (Co) Mr. Siripoj Kunakornphan said, "True Group's focus on micro-level strategies with targeted marketing campaigns and operations as well as digitization has become more efficient and contributed to continued profit this year as we are now structured to be more responsive to customers' demands and the competitive dynamics in each area. In addition to strengthening network quality through more than 76,000 base stations and 100,000 WiFi hotspots of TrueMove H and 15 million fiber homes passed of TrueOnline, the Group further expanded its sales and service channels while working cohesively with partners to better reach and add convenience to customers. We believe that we are on the right track and our relentless efforts in innovating and developing value-driven products will push our growth higher in the second half of the year."
TrueMove H once again outperformed and led the industry's growth with service revenue increasing 6.3% YoY to Baht 19.5 million in 2Q19 driven mainly by strong growth in the postpaid segment and ARPU growth of more than 3% from the previous quarter. This solid performance was achieved as TrueMove H's targeted marketing campaigns and synergy with strategic and device partners gained traction further while its top network position continues to resonate with consumers. At the same time, TrueMove H's collaboration with China Mobile International through the "CMLink TrueMove H Thailand 4G SIM" campaign received promising market response while inbound roaming traffic from partners helped boost its international roaming revenue up at a double-digit rate YoY. TrueMove H was the only player in the industry that reported positive net adds, gaining approximately 229,200 subscribers in the second quarter of 2019, and expanded its total subscriber base to 29.8 million. As a result, its subscriber market shares increased to 32.4%.
TrueOnline continues to place importance on service quality as well as differentiated and value-driven products to maintain its broadband leadership and enhance quality subscriber growth. The business added more than 64,000 net subscribers in 2Q19 expanding its broadband internet subscribers and revenue up from the previous quarter to 3.6 million and Baht 6.3 billion respectively. TrueOnline saw a rising trend of high-tier acquisition in its portfolio due to strong responses to the 1 Gbps fiber proposition and bundling with TrueID TV box. This, together with speed and technology upgrades capitalizing on nationwide fiber network and the innovative Gigatex Fiber Router as well as content-lead strategy will be keys for growing revenue and ARPU further as its offerings meet consumer's digital lifestyles and elevate their online experiences.
TrueVisions' service revenue picked up 3.7% from the previous quarter to Baht 3.0 billion driven by revenues from organizing major profitable concerts in the second quarter. The business continues to aggregate and develop high-quality content that responds to consumers' preferences while synergy with the multiple platforms of True Group, particularly the TrueID TV box, not only matches consumers' lifestyles but also significantly expands its viewer base beyond TrueVisions' 4 million customers. TrueVisions recently acquired exclusive broadcasting rights of the English Premier League (EPL) from 2019/20 to 2021/22 seasons including live broadcasts, reruns, and highlights of every match on all platforms covering traditional TV, online and digital. This widens True Group's revenue growth potential from content subscription, sublicensing and advertising through traditional TV, media and digital platforms.
True Digital Group (TDG) is building an ecosystem of innovative platforms and solutions to capture new growth opportunities from digital, analytics, IoT and related technologies. TDG's flagship digital media platform "TrueID" is leading within its category with monthly active users growing to over 19 million in 2Q19. TrueID offers its subscribers a wide range of content including movies, television programs, music, sports, and articles. TrueID also provides a digital gateway to the Group's privilege program "TrueYou" with TruePoints' redemption across dining, shopping and entertainment categories. TrueID TV offers the same content and privileges within the convenience of the home television screen. The recent acquisition of EPL rights by TrueVisions Group will further bolster TDG's value proposition across TrueID and TrueID TV. These platforms offer additional revenue streams from premium content, digital advertising, and affiliate marketing, whilst increasing customer stickiness with True Group's traditional core businesses. TDG's analytics platform enables targeted digital marketing campaigns as well as generating new consumer insights from its proprietary data for both existing True Corp and third-party clients. TDG's IoT unit has developed innovative digital solutions across multiple verticals including agriculture, retail, healthcare and transport & logistics, creating new revenue streams for the Group. Its IoT platforms support 193,000 connected IoT devices, representing a 14% growth from the previous quarter.