About Me

header ads

dtac announced THB 0.52 per share dividend for Q4/15

February 3, 2016 – dtac reported total revenues and net profit for Q415 of THB23.2 billion and THB998 million, respectively. From operating results in Q415, dtac declared dividend of THB0.52 per share, a payout ratio of 124% and subject to the approval of the annual general meeting.

For the full year 2015, dtac generated total revenues and net profit of THB87.8 billion and THB5.9 billion, respectively. Revenue from data service surpassed that from voice service for the first time in 2015 due to the change in mobile phone usage behavior. Despite strong growth in demand for data service, its revenue growth was more than offset by the decline in voice revenue, resulting in the decline in total service revenue excluding IC of 3.0% from previous year.

In order to take a leading position in 4G service, dtac increased its investment in network to THB20.2 billion in 2015, rolling out 4G network on 20MHz bandwidth, highest among mobile operators in the market, in BMA and more than 40 cities throughout Thailand. Furthermore, it plans to further strengthen its network in 2016 by investing similar amount of CAPEX to expand 4G network coverage to reach every province in the country, and to extend 3G coverage to 95% of population.

In 2015, dtac increased spending on network expenses along with network expansion; and on selling, marketing, and general administrative expenses, and handset subsidy to address higher level of competition. Moreover, depreciation and amortization expenses went up due to higher level of investment in the networks as mentioned above. The increases were partly offset by the decline in regulatory cost. Consequently, net profit declined 45% from previous year.

dtac is fully committed to becoming the leading Digital Service provider and continues to improve and expand its networks, now reaching an all-time high of 94% population coverage. In addition, dtac continues nationwide network campaign, initially launched in late Q3-15, to capitalize on the improvement of its network and offers attractive price plans and handset bundle packages to customers.
We provide outlook for 2016 based on high uncertainty in the market from competition and pending entry of a new player following the conclusion of the auctions in Dec 2015, in addition to weak recovery of the overall economy. The outlook for 2016 comprises (1) flat/slight increase in service revenue excluding IC from last year, (2) EBITDA margin in the range of 27% - 31%, and (3) similar CAPEX level as last year.

Lars Norling, dtac’s Chief Executive Officer, said “Our immediate focus is on bringing revenue growth back and maintaining revenue market share. We plan to achieve it through additional investment in 4G network on both 1800MHz and 2.1GHz to serve the huge demand for mobile data services and in 3G network to reach 95% of population coverage, as well as value-for-money offerings on price plans and handset deals to customers. Furthermore, we plan to launch a new brand platform in order to refresh the brand image and improve our position in the market. The new platform will be a solid foundation for innovative products and services, and a preemptive move in order to prepare for the entry of a new player.”