Somruetai Tantakitti, Head of Investor Relations of Advanced Info Service Public Company Limited (SET: ADVANC), revealed that the company is still facing macroeconomic risk from the end of the first quarter and early second quarter. ADVANC maintains its EBITDA’s goal this year of 3 – 5%, despite its rate in 1Q25 having increased by 7.4%.
There are several factors leading to an increase in mobile phone utilization. Furthermore, the backlog among enterprise customer groups and home internet installation also pushes the company’s performance beyond expectation. Still, the company maintains its prudent business management to meet its target.
In April, the company’s mobile service reaped benefits from tourism and Songkran festivals. Its revenue from roaming helps maintain the momentum. However, ADVANC maintains its caution during the period between May to June 2025 as it is a low season. The rainy season and school term have started and these factors could affect the household budget allocation. Meanwhile, the broad-band service starts to slow down, following consumer purchasing power.
During Songkran festivals, the rate of home internet installation dropped due to customers viewing home internet as luxury goods amid the current economy. However, ADVANC’s marketing team continues to focus on selling innovative products to attract more customer segments. As for the enterprise service, its business continues growing from the on-going backlogs from previous year, especially from the demand for digitalization, cloud, and regional connectivity in the CLMV region.
As for the development of virtual banks, which is in the process of being considered by the Ministry of Finance, there is a speculation of an announcement this June. This project is a joint venture between Krungthai Bank Public Company Limited (SET: KTB) and PTT Oil and Retail Business Public Company Limited (SET: OR). According to the Bank of Thailand’s timeline, the project would start next year, with an investment of THB 5 billion, followed by THB 10 billion in the following year.
As for the Data Center & AI service, GSA Data Center Company Limited (GSA) is expected to start operating this quarter. The company is a joint venture between Gulf Infrastructure Company Limited (a subsidiary of Gulf Development Company Limited (SET: GULF)), ST Dynamo TH Pte. Ltd. (a subsidiary of Singapore Telecommunications Limited (Singtel)), and AIS DC Venture Company Limited (a subsidiary of ADVANC).
ADVANC plans to invest more than THB 3 to 5 billion on both projects in the next three years. Meanwhile, the investment for enterprise service is set to be between THB 1 to 2 billion per year depending on the proposed project and the customer demand. Finally, the investment for CAPEX this year is still set between THB 26 to 27 billion.
