Higher Costs Push DTAC’s 3Q Earnings Down 41% to THB487 Million

Total Access Communication Public Company Limited (SET: DTAC) has announced its consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q22 3Q21
Net Profit (Loss)
Million Baht
487.96 832.03
Earning Per Share
(Baht)
0.2100 0.3500
% Change -41.35
9 Months 2022 2021
Net Profit (Loss)
Million Baht
2,218.27 3,184.86
Earning Per Share (Baht) 0.9400 1.3500
% Change -30.35

DTAC reported a net profit of THB 487 million in 3Q22, decreased 41.35% from a net profit of THB 832 million in the same period last year. The company said  that the decline on yearly basis was due to amalgamation cost in 2022 and regulatory cost benefit in 2021.

Meanwhile, net profit declined by 51.4% QoQ due to net positive impact from one-offs in Q222, higher depreciation and amortization in Q322, partly offset by interim settlement of insurance claims of aboutTHB 170 million.

Total revenues in Q322 amounted to THB 20,030 million, increasing by 4.1% YoY and 0.4% QoQ. Service revenue excluding IC amounted to 13,930 million for Q322, declining by 0.3% YoY due to decline in ARPU, while remaining flat QoQ due to slowly improving macroeconomic situation and growing contribution from tourist and migrant segment.

Total costs in 3Q22 was THB 15,596 million, representing an increase by 9.6% YoY and 10.4% QoQ, notably from higher cost of services.

Subscriber growth continued with a 775K net addition QoQ resulting in 21.1 million subscribers at the end of Q322, registering an increase of 9.2% YoY. Prepaid users grew by 833K while postpaid users declined by 58K. Approximately 29% of dtac’s total subscriber base are postpaid users.

During Q322, service revenue excluding IC declined by 0.3% YoY mainly due to ARPU erosion, while remaining flat QoQ driven by higher prepaid revenue from growing tourist and migrant segments. Core service revenue decreased by 0.6% YoY due to fierce competition and lower postpaid revenue. Handset sales increased by 73.3% YoY due to the early launch of iPhone in Q322 and shop closure in Q321. Blended ARPU declined by 8.3% YoY and 3.4% QoQ.