Bangkok--16 Aug--PR Solution Revenue and EBITDA rise Y-on-Y Balance sheet strengthens, major refinancing completed True Move lifts market share, almost doubling subscriber net adds Broadband benefits from Internet gateway license Bundling of Group services becoming more popular True Corporation PLC (SET: TRUE) has reported higher revenue and EBITDA for Q207 against the comparable period in 2006. The company’s convergence lifestyle strategy is proving successful, with more than a million households using two or more True services, 27% higher than nine months ago. True’s balance sheet also continues to improve with the ratio of consolidated net debt to EBITDA falling to 3.7 times for 1H07 compared with 4.6 times in FY06 and 5.9 times in FY03. True President and CEO Supachai Chearavanont said True had developed steadily over the past 12 months. “Our service revenue and EBITDA have risen and our balance sheet is stronger. We are also seeing evidence that our convergence lifestyle strategy is lifting our subscriber base across our key growth drivers.” At the end of the quarter, 1.2 mn Thai households were using two or more True services, 27% higher than nine months ago. The number of households using three or more services rose 30% to 434,000. In total, 7.1 million households use at least one True service. True’s Q207 consolidated service revenue of Bt 15.7 bn was 13.0% higher Q-on-Q and 30.7% higher Y-on-Y due mainly to the inclusion of interconnection charges (IC). Excluding IC, consolidated service revenue increased slightly Q-on-Q (0.4%) and was 7.4% higher Y-on-Y at Bt 12.9 bn with 12-month service revenue growth across all businesss segments. EBITDA of Bt 4.7 bn was 7.1% lower Q-on-Q due to higher operating costs but rose strongly Y-on-Y (by 18.1%) with True Move leading the way. Group net loss for the quarter was Bt 690 mn, compared with a net profit of Bt 478 mn in Q107 (due mainly to a lower foreign exchange gain), but represented a significant improvement on the Q206 net loss of Bt 1.3 bn. Comparing 1H07 to 1H06, consolidated service revenue rose 18.7% to Bt 29.7 bn and EBITDA was 11.7% higher at Bt 9.8 bn. Excluding IC, consolidated revenue increased 3.2% to Bt 25.8 bn. True Move added 953,000 new subscribers during Q207 (compared with 558,000 in Q107) to reach 9.1 mn, 68% higher than a year ago. Market share of net adds for Q2 is expected to improve on Q1’s 16%, and overall market share should approach 20%, compared with 15.1% a year ago. The success of key bundling promotions with other Group businesses was one of the major factors in this subscriber growth. This included the latest season of Academy Fantasia (AF4) which is also expected to contribute to Q3 growth. Broadband lifted its subscriber base to 504,000, as the business continues to benefit from promotions made possible by direct access to the International Internet Gateway. Net subscriber additions in Q207 increased 35% from Q107 to 35,000. TrueVisions’ subscriber numbers reached 569,000, with the business’ mass market strategy having attracted more than 228,000 customers since its launch a year ago. Other initiatives launched in 2H07 relate to English Premier League, Academy Fantasia and new channels. Since the beginning of the year, the Group has completed two major refinancing activities: a local debenture issue of Bt 4 bn and a new True Move US bond issue (July) worth USD 225 mn which was two-times oversubscribed. Proceeds replaced existing loans and freed up significant cash flow. 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: Corporate Communications - True Group Ref: (124) 14/08/2007 Sisadhi Reuben Tel: +66 (0) 2699 2872 Email: [email protected] Pimolpan Siriwongwan-ngarm Tel: +66 (0) 2699 2772 Email: [email protected]