Bangkok--May 16--True Corporation
TRUE POSTS STRONG Q1 RESULT
TA ORANGE ON TRACK FOR BOTTOM LINE BREAKEVEN IN Q4
TRANSFORMATION CONTINUES
Strong performances from the high growth mobile and broadband/Internet businesses continue to drive the transformation of True, with TA Orange on track for monthly bottom line breakeven in the fourth quarter of 2005,
True President and CEO Supachai Chearavanont said today at the announcement of the company’s first quarter results.
True revenue increased 9.6 percent (Q-on-Q) to Bt 12.1 bn, with TA Orange generating 52 percent of consolidated revenue (from 47 percent in Q4, 2004).
True posted a profit of Bt 146 mn for the quarter, following a Bt 370 mn gain from the settlement of Deferred Payment Notes and a foreign exchange gain of Bt 142 mn.
Consolidated losses from ongoing operations reduced significantly by 61.6 percent (Q-on-Q) to Bt 487 mn, with TA Orange’s contribution reduced to Bt 170 mn (from Bt 221 mn in Q4) as it approaches monthly net profit breakeven, expected in Q4.
True consolidated EBITDA grew 19.1 percent (Q-on-Q) to Bt 4.4 bn, driven mainly by a 34 percent increase in TA Orange EBITDA to Bt 1.6 bn.
Consolidated EBITDA margin increased Q-on-Q to 36.7 percent, from 33.8 percent in Q4, 2004, following an improvement in TA Orange’s EBITDA margin to almost 26 percent (from 23 percent in Q4, 2004).
TA Orange revenue contribution increased 20.9 percent (Q-on-Q) to Bt 6.3 bn, as its subscriber base grew 15.9 percent (537,798) to reach 3.9 million subscribers. Blended ARPU remained stable at Bt 476 as new price plans introduced per-minute tariffs (from per-second) and increased minutes of use.
The new price plans allowed TA Orange to increase its share of the mobile market to 13.7 percent (from 12.5 percent in Q4) despite competition intensifying.
Mr. Supachai said: “Consumer Broadband revenue surged 50 percent quarter on quarter to Bt 461 mn with subscribers passing 200,000. Further subscriber growth is expected in Q2 following the launch in April of Pre Pay hi-speed Internet, a first in Thailand.
“We have now captured the ‘first movers’ of Consumer Broadband take-up and are focusing our efforts on the next tier of consumers.”
Consumer Broadband growth continued to strengthen True’s Internet business and helped to offset a 7 percent decline (Y-on-Y) to Bt 3.9 bn in revenue for True’s fixed line business.
WE PCT continued its turnaround, with service revenue increasing 6.8 percent (Q-on-Q) to Bt 426 mn and ARPU increasing by 13.2 percent (Q-on-Q) to Bt 308.
“In a strong first quarter, True built on its position as Thailand’s leading integrated telecommunications solutions and content provider with the launch of True Online, Dual Phone, VDSL and Music World,” Mr Supachai said.
“These new services are changing the way consumers purchase and use services and content and we expect to realize benefits as the industry moves towards convergence.”
Chief Financial Officer Mr William Harris said key debt ratios continued to improve: “True’s net debt to EBITDA ratio, including TA Orange, reduced to 4.4 times in the first quarter, from 6.0 times in 2004. The EBITDA/interest coverage ratio increased to 3.6 times, from 3.1 times during the period.
“Our debt was reduced further by Bt 787 mn, including the settlement of Deferred Payment Notes.”
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