Bangkok--Feb 27--True Corporation
True Move and consumer broadband drive strong FY05 revenue and EBITDA growth
Strong True Move recovery drives overall Q4 result
True Move approaches breakeven
Profitability of fixed line business assured with voluntary network write-down
Significant debt repayment in FY05 and ongoing commitment to deleveraging
UBC acquisition completes integrated operator strategy
True Corporation PLC (SET:TRUE) posted strong revenue and EBITDA growth in FY 2005, driven by standout performances at its True Move (formerly TA Orange) and consumer broadband businesses.
True finished the year as Thailand’s most integrated communication solutions provider, with the fastest growing mobile operator in True Move, market leadership in broadband, the number one ISP, the largest number of Wi-Fi hotspots and remained on track to acquire UBC — Thailand’s leading pay TV operator.
True consolidated service revenue increased 36.5% in FY05 to Bt 41.5 bn and EBITDA improved 21.5% to Bt 15.7 bn.
The recovery at True Move gained strong momentum during the fourth quarter, with service revenue increasing 11.1% (Q-on-Q) and EBITDA improving 33%. This strong performance drove True’s consolidated fourth quarter result and offset a seasonal cost increase, with consolidated service revenue increasing 3.6% (Q-on-Q) and EBITDA stable.
True Move finished the year with a 34% share of net subscriber additions in the fourth quarter (up from 9.5% in Q3) and took a market leading share in November and December. This took True Move’s overall share of FY05 net adds to 34%, in line with plan. True Move added 1.1 mn net new subscribers, exceeding target to reach 4.5 mn at year end with a market share of 15.1% (up from 12.8% at year end 2004). True Move’s service revenue contribution increased 139% to Bt 19.5 bn in FY05 and EBITDA contribution more than tripled to Bt 5.7 bn as it approached bottom line breakeven with a net loss contribution of Bt 154 mn in Q4.
Consumer broadband continued its strong growth in FY05 and held an 80% market share in the BMA. Subscribers almost doubled to 300,322 and revenue improved 182% to Bt 2.0 bn, offsetting the decline in fixed line revenue.
During the quarter, True assured future profitability for its fixed line business by significantly lowering its depreciation charges over the next five years with a Bt 2.0 bn voluntary write-down in its network. The write-down, which is an accounting adjustment and a non-cash transaction, and other non-recurring items contributed to a total full year net loss of Bt 4.3 bn.
True President and CEO Supachai Chearavanont said that the acquisition of UBC completed True’s integrated operator strategy and positioned the company to drive revenue and subscriber growth through the convergence of networks, content and services.
“Our integrated platform provides True with important competitive advantages and growth opportunities. By bundling our services together, we are able to compete on value, not just on price, and gain market share by delivering promotions to subscribers that our competitors can’t match.”
Mr Supachai said that True was on a firm path to profitability, with True Move approaching breakeven, UBC already in profit, and the fixed line business assured of profit.
Chief Financial Officer Mr William Harris said True made significant debt repayments (Bt 4.5 bn) in FY05, completed the PCT debt restructuring with a Bt 801 mn gain, and received a further gain of Bt 370 mn through the settlement of Deferred Payment Notes.
Mr Harris said True remained committed to deleveraging, with net debt to EBITDA declining to 4.3 times in 2005 (excluding True Move and the bridging loan to acquire UBC).
For more information, please contact:
PR Department, True Corporation Plc
Pimolpan Siriwongwan-ngarm
Tel: +66 (0) 2699 2772 Email: [email protected]
Sisadhi Reuben
Tel: +66 (0) 2643 2463 Email: [email protected]
Nawanooch Sanpabopit
Tel: +66 (0) 2699 2744 Email: [email protected] End.