TRUE GROUP CONTINUES TO OUTGROW THE INDUSTRY IN 3Q20 AS THE ONLY OPERATOR REPORTING EBITDA

Stocks and Financial Services Press Releases Monday November 16, 2020 09:10
Bangkok--16 Nov--True Corporation

True Group maintained the topline with service revenue of Baht 26.5 billion in 3Q20 amid the prolonged impact from COVID-19 outbreak and economy lowering overall domestic spending and tourist arrivals. Continued cost discipline together with upward trend of the Group's digital ecosystem pushing True Group as the only industry player with EBITDA growth both YoY (+19%) and QoQ (+2%) to Baht 9.4 billion in the third quarter, or increased 30% YoY to Baht 13.4 billion including the effect of the new accounting standard (TFRS16). True Group reported EBITDA of 38.6 billion with growing margin and net profit of Baht 1.2 billion in the first 9 months of 2020 and is implementing an aggressive array of major cost and productivity initiatives to significantly enhance financial health with sustainable profitability next year onwards. As Thailand is moving into 5G and rapidly progressing toward full digital adoption, True Group is in a prime position to ride on significant growth potential of the New S-Curve as proven with its solid growth record alongside technological changes like the past 3G and 4G era and will continue in upcoming 5G.

President (Co) Mr. Anat Mekpaiboonvatana said, "True Group maintained solid EBITDA growth in the third quarter even though the overall consumers' spending and behavior has been affected by economic situation and prolonged COVID-19 pandemic.This challenge, however, has created the new normal lifestyles that will amplify growth potential for Thailand and True Group as consumers and businesses become more digitized. We observed continued escalation of digital transactions and behavior as well as growing demand for broadband connectivity especially with access to digital platform anytime, anywhere driving our broadband Internet and digital revenue growth. Although the overall mobile industry was hit by continued absence of tourist arrivals during the quarter, our recent commercial launch of 5G with value-added offerings and contents, particularly VR and AR, are expected to drive data growth and more premium subscriber base to True Group. We will continue to put relentless efforts on improving productivity, driving engagements via the Group's comprehensive digital ecosystem and reaping the benefit from New S-Curve, digital sales and services to further increase our competitive strengths and profitability."

President (Co) Mr. Sarit Jinnasith said, "We have continued to provide high-quality networks and services to consumers utilizing advanced technologies that offer conveniences with better experiences. The launch of 5G in Thailand comes at the right timing as it helps shape the society and pave the way to a fully integrated digital era and we are proud to be a part of this driving force. At the same time, we have leveraged our sales and services more toward e-commerce and digital channels including website, True iService, official LINE account with Mari chatbot, recently received recognition at the Line Thailand Awards 2020 as the Best Official account in Tech, Telco & Entertainment, as well as partners' platform via WeMall, TrueMoney, and other online store partners. These helped us reach consumers in a more efficient manner and boosted strong acquisitions across our various products in the third quarter."

TrueMove H continued to grow its postpaid base with industry's highest postpaid net adds of 269,000 in Q3 driving postpaid revenue up in double-digit rate from the same period last year. The prolonged economic and COVID-19 impact on consumer spending as well as loss of foreign travelers, however, pressured prepaid and international roaming revenues, the same trend as the overall industry. TrueMove H recorded service revenue of Baht 19.9 billion in 3Q20 boosting its 9-month service revenue up 4% YoY to Baht 60.2 billion. The business ended the third quarter with total customer base of 30.1 million, of which 20.8 million were prepaid and 9.3 million were postpaid. TrueMove H will continue to place importance on network and service quality, adding on value-driven contents while the 5G commercial launch with its 5G network strength catalyzed by rising adoption and 5G devices, more premium models expected in coming quarters, should contribute to TrueMove H's growth amid high penetrated mobile market.

TrueOnline maintained its broadband leadership proven with continued solid net adds as well as the No.1 Brand Thailand 2019-2020 in the broadband internet category from Marketeer for six consecutive years. The business delivered another solid quarter growing revenue by 3% from the same period last year to Baht 6.8 billion in 3Q20. Total broadband internet customers expanded to 4.1 million adding 111,000 net subscribers during Q3. Enhancing customer's internet experience via value-driven products and innovation has been key strategy for TrueOnline. These include Gigatex Fiber Router and Mesh Wifi, band steering technology that combines all WiFi frequency bands and chooses the best signal automatically, speed boost and service upgrade especially with benefits from True Card. These, together with rising demand for broadband connectivity, should boost growth with revenue upside.

TrueVisions' service revenue was Baht 2.6 billion in 3Q20 with core subscription revenues picking up as the prolonged COVID-19 impact on the business has stabilized along with premium subscriptions resuming growth and positive momentum of domestic tourism recovery.The progress toward online, customized and A-la-Carte packages that respond to the evolving preferences of Thai consumers, and rising contribution from influencer revenues should boost growth for TrueVisions going forward. TrueVisions ended the third quarter with total customer base of 4.0 million underpinned by 4% growth of premium customer base compared to the previous quarter.

TrueID reached the new high for content transaction at 311,000 transactions, representing 18% growth from the previous quarter, and 240 million monthly video views in the third quarter. English Premier League remains one of the platform's key attractors, selling 3 times higher presale season passes than last year. At the same time, TrueID TV, its OTT platform, continued to expand with approximately 1.8 million TrueID TV boxes at customers' premises, resulting in double-digit growth of digital content subscription and advertising revenues. Meanwhile, TrueYou gained traction further with the on-going campaign, "Lucky Draw", driving 16% new TrueID users and accumulating more than 9.5 million engagement transactions in Q3, while "TruePoint Carnival Party" received 4.6 million engagements via TrueID application during August-September, with 40% repeated redemption users.

In the enterprise segment, True Digital Solutions has consistently grown and connected over 281,000 IoT endpoints and devices by the end of Q3. In Agriculture technology, it introduced True Digital Smart Crop, an innovative solution that helps farmers manage and increase productivity with connected analytical tools such as Smart drone and satellite image analytic to help predict weather conditions, identify potential drought and flood damages, plantation planning, as well as predictive insight for cost management. In Property Technology, it has continued to partner with property developers to pilot Property Integration Systems, which helps asset optimise space utilisation, and implement predictive and preventive maintenance. Meanwhile, for the consumer market, it introduced Smart Living solutions such as Home Center application, Home IoT sensors, and other homecare devices to connect and empower users to take control of their facility management.


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