True Corporation Public Company Limited (SET: TRUE) has announced its 1Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;
In the first quarter after the amalgamation with Total Access Communication Public Company Limited (DTAC), TRUE recorded a net loss of THB 492 million, as a result of lower EBITDA and sales.
On a pro-forma financial basis, for the first quarter of 2023 True Corporation reported total revenue of THB 51,463 million, declining 3.9% QoQ and 6.7% YoY, mainly due to lower product sales and lower service revenue. Total Opex excluding D&A declined by 10.3% QoQ and 5.2% YoY due to ongoing efficiency measures despite higher inflation and higher utility costs.
Mobile service revenue was reported at THB 31,142 million, declining 1.7% QoQ and 2.5% YoY mainly driven by continued ARPU erosion from competition aggression despite ongoing subscriber growth.
Online service revenue amounted to THB 5,628 million, declining 0.9% QoQ and 2.3% YoY. Online service revenue was negatively impacted by declining consumer broadband sales amidst intensifying competitive offers, partly offset by growth in corporate sales.
PayTV service revenue amounted to THB 1,667 million, declining 1.9% QoQ and 1.6% YoY. Subscription and installation revenue contributed to 74% of service revenue while music and entertainment revenue improved driven by higher concerts in the quarter. ARPU continued to improve along with declining mix of mass customer base.
Interconnection revenue amounted to THB 1,549 million, growing 273.8% QoQ and 214.2% YoY, positively impacted by a favorable settlement of an ongoing litigation in Q123.
Product sales revenue amounted to THB 5,740 million, declining 28.8% QoQ and 28.9% YoY, impacted by lower volume of handsets sold in Q123 and early launch of iPhone in Q322.
Total operating expenses excluding depreciation and amortization amounted to THB 32,174 million, declining 10.3% QoQ and 5.2% YoY as a result of continuous focus on efficiency measures despite higher inflation. Network costs amounted to THB 4,546 million, increasing 40.4% YoY driven by higher utility costs from energy price hikes and higher costs related to higher network rollout.
Other costs of providing services declined 8.8% YoY driven by positive impact from revised wholesale arrangements with NT. Cost of sales declined 30% YoY as a result of lower volume of handsets sold and lower IDD related costs. Selling and administrative expenses increased 9.0% YoY, mainly impacted by amalgamation related costs in Q123.
Depreciation and amortization amounted to THB 16,169 million, remaining flat QoQ (-0.1%) while increasing 5.6% YoY due to continuous network rollout focused on improving customers’ experience and service quality.
