Bangkok--15 Nov--PR SOLUTION
- Record subscriber net additions for True Move (1.4 mn)
- Broadband net adds accelerated, strong revenue growth continues
- UBC subscriber growth almost doubles
- Bundling/convergence strategies delivering results
- Positive outlook for 2007
True Corporation PLC (SET: TRUE) posted record mobile subscriber growth for the three months to September 30 as True Move made a strong recovery from price competition in Q2. True Move service revenue increased 16.7% and EBITDA rose 37.2% from Q2, resulting in an improvement in the consolidated results.
True CEO and President Supachai Chearavanont said True Move added a net 1.4 million subscribers in the quarter, lifting its total number to 6.8 million and its market share to around 18.8%.
“This growth reflects our ability to offer a better value-for-money proposition in our mobile services, the growing success of our convergence strategies with bundled promotions such as UBCAF3, and the effective use of key distribution channels such as 7-Eleven.
“Our bundling and convergence strategies also contributed to accelerating growth in our consumer broadband and pay-TV businesses.”
For the quarter, consolidated service revenue rose by 4.7% (to Bt 12.6 bn) and consolidated EBITDA was 5.3% higher (to Bt 4.2 bn) . For the first nine months of the year, service revenue was up 20.8% (to Bt 37.6 bn) and EBITDA up 9.1% (to Bt 13.0 bn), lifted by the full consolidation of pay-TV operator UBC early in the year. Q3 EBITDA margin increased slightly Q-on-Q to 32.5%.
True’s net loss for the quarter was Bt 745 mn (excluding expenses related to the acquisition of UBC) — an improvement Q-on-Q of Bt 161 mn.
True Move recovered strongly from the impact of Q2’s price competition. Q3 service revenue increased 16.7% from Q2 to Bt 5.7 bn and EBITDA grew strongly by 37.2% to Bt 1.3 bn. True Move’s share of market net adds for the quarter was 52%, boosting its share of year-to-date market net adds to 35.9%. True Move has now succeeded in gaining around a third of market net adds in each year since 2004.
“Although a renewed round of mobile price competition began in October, we expect it to be temporary. The validity periods for the current low-price promotions are relatively short,” said Mr Supachai.
“The NTC is investigating our complaint regarding the pricing strategies of the biggest market player. Looking forward, we believe the introduction of the interconnection regime in early 2007 will encourage more rational market competition.
“The continuing development of our convergence strategy, encouraging higher penetration of True Group services across our subscriber base, will increase loyalty among our mobile subscribers.
“We are also optimistic about the regulatory environment and the development of a more level playing field for the industry.”
True’s consumer broadband operations reported another solid quarter of growth, with service revenue up 16.7% Q-on-Q and 65.8% for the first nine months of 2006. Net subscriber additions for Q3 rose 28.7% from Q2 to 43,868, taking the total number to 412,742, due partly to the success of bundling packages.
The growth in broadband, coupled with greater data revenues, helped to offset the declines in fixed line, PCT and public phone revenues, with service revenue for the overall Wireline business rising 2.3% Q-on-Q.
UBC’s service revenue continued to rise — up 3.3% on the quarter due mainly to UBCAF3 — as did EBITDA (up 19.7%) and EBITDA margin (up from 24.2% to 26.5%). UBC’s net subscriber additions almost doubled to 27,986, boosted by mass market promotions. Total subscriber numbers reached 529,050. UBC’s net profit from ongoing operations rose from Bt 221 mn to Bt 262 mn.
UBC-True Move Free View Package, a mass market promotion launched in July, has attracted 44,000 subscribers in its first three months. The number of Free View subscribers upgrading (or “up-selling”) to more expensive UBC packages has increased steadily and has now reached 25%.
Chief Financial Officer Mr William Harris said True is committed to deleveraging its balance sheet. During 9M06 True repaid Bt 7.2 bn in long-term loans, including Bt 6.8 bn for Wireline.
The consolidated net debt to EBITDA ratio for 9M06 was 4.5 times, compared with 4.8 times at YE2005 (excluding finance lease).
Early in the quarter, True raised Bt 3.4 billion in an equity placement to help fund True Move’s growth, with True’s shareholding in True Move rising to 93.4%. The long-term financing of True’s acquisition of UBC was also completed.
Note: In this media release, “True”, “Company”, “Affiliates” and “Subsidiaries” refer to True Corporation PLC and/or its affiliates and/or its subsidiaries.
For more information, please contact:
PR Department, True Group
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]
PR SOLUTION Prapas/ Chitruetai/ Sitthikorn Tel: 0-1827-7354 / 0-613-1865 / 0-9155-5095