Bangkok--Feb 28--TRUE Corporation
On Track for Improved Profitability
Well Positioned for More Competitive Environment
True is on track for improved profitability and well positioned for the more competitive post-liberalization environment with strong revenue growth and a stellar performance from TA Orange and its Broadband/Internet businesses.
“Our strategy is yielding results and will continue to do so,” True President and CEO Supachai Chearavanont said after announcing strong full year 2004 results.
True revenue increased 18.1 percent (Y-on-Y) to Bt 33.0 bn. Fourth quarter revenue grew 45.4 percent on Q3 to Bt 11 bn as the company booked full results for TA Orange after increasing its shareholding to 83 percent in September 2004.
TA Orange’s revenue contribution increased 94.3 percent (Y-on-Y) to Bt 9.9 bn. Consumer Broadband revenue more than tripled in FY 2004 (to Bt 725 mn) while Internet revenue surged almost 90 percent (to Bt 888 mn) during the period.
The company posted a Bt 605 mn FY profit — the first since 1999 — after a Bt 2.9 bn one-off gain from a debt haircut — and reduced its consolidated loss from ongoing operations by 34 percent to Bt 3 bn.
True EBITDA grew 13.1 percent to Bt 13.2 bn in FY 2004, due largely to a significant increase in TA Orange’s contribution (Bt 1.8 bn in FY 2004 compared with a negative Bt 266 mn in FY 2003). Core fixed line and other non-TA Orange businesses generated strong free cash flows of Bt 6.2 bn, up 20.7 percent on 2003.
Mr Supachai said: “The results show how True's revenue profile is changing rapidly. Its stable core fixed line business is being overtaken by high potential ‘new’ businesses, which are on fast track growth paths.
“Our mobile and Broadband/Internet businesses are exceeding growth expectations and transforming the company. In FY 2004, TA Orange and our Data/Internet/Broadband businesses contributed 37 percent of total group service revenue, compared to 26 percent in FY 2003. In Q4, 2004, the contribution of these high growth businesses increased to 54 percent.
“TA Orange added 1.6 mn new subscribers (an 85 percent increase to 3.4 mn) making it the fastest growing mobile operator in Thailand. We expect it to exceed 4.2 mn subscribers by the end of 2005 and generate at least 50 percent of True Group revenue,” Mr Supachai said.
“Consumer Broadband subscribers increased 13-fold in FY 2004 to more than 160,000 and True now holds 85 percent Broadband market share. We see enormous potential for future growth with just 3 percent of all Internet users currently on a Broadband connection.
“Broadband growth also strengthened our Internet business, which grew by almost 90 percent in 2004 to 1.2 million in FY 2004 and is now Thailand’s largest ISP.
“Our fixed line and WE PCT businesses have been stabilized with fixed line reporting a profit from ongoing operations for five consecutive quarters. True is now on track for improving profitability,” Mr Supachai said.
Chief Financial Officer Mr William Harris said: “True’s balance sheet strengthened further with the completion of TA Orange’s long-term financing, a capital increase and the debt restructuring of our WE PCT business.
“Non-TA Orange debt was reduced by Bt 9.3 bn, including a Bt 2.9 bn gain from a debt haircut. This reduced our net debt to EBITDA ratio, excluding TA Orange, to 4.3 times at the end of 2004.
“Solid cash flows from our fixed line business are providing a strong foundation for future growth and ongoing debt reduction,” Mr Harris said.
For more information, contact:
PR Department :
Pimolpan/Nawanooch/Sisadhi :
02-699-2772, 02-699-2774, 02-643-2463 End.