dtac continues to deliver strong operating cash flow - PostupnewsEN

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วันพฤหัสบดีที่ 20 เมษายน พ.ศ. 2560

dtac continues to deliver strong operating cash flow



April 20, 2017 – dtac reports a solid operating cash flow (defined as EBITDA – CAPEX) of THB2.4 billion in the first quarter of 2017. Service revenues excluding IC and net profit rebounded from last quarter to THB 16.2 billion and THB 229 million, respectively.

EBITDA amounted to THB 6.9 billion in the first quarter of 2017, declining 5.9%YoY as a result of higher handset subsidies and network OPEX. EBITDA margin improved 110bps from last year to reach 34.9% of total revenues. Depreciation and amortization expenses continued to rise due to continuous investment in the network. Consequently, net profit for Q117 declined 82% from the same period last year. However, operating cash flow remained solid at THB 2.4 billion, down from THB 2.6 billion in the same period last year.

In the first quarter of 2017, dtac continued to invest heavily in the network to serve increasing demand for data services. The number of base stations increased 17.5k from the same period last year. 4G network continued to expand and customers enjoyed better mobile Internet experiences on our network. Furthermore, dtac launched the ‘Smoothest’ advertising campaign to strengthen network perception. Customers’ satisfaction with our network quality continued to improve as indicated by several third-party surveys. Moreover, dtac introduced the ‘Flip It’ brand platform to solidify its market position and differentiate itself from competitors, together with the launch of ‘Go No Limit’ price plans and ‘Go Plearn’ prepaid SIM.

Both campaigns helped to sustain strong growth in postpaid segment, with 195k net additional subscribers, and data service during the first quarter of 2017. In addition, prepaid segment started to stabilize as indicated by flattish QoQ development of average daily service revenues.
Furthermore, dtac has revamped its dtac Reward program in order to build loyalty among the subscriber base, and at the same time improve the efficiency of its spending, as shown by lower selling and marketing expenses.

At the end of the first quarter, total subscriber base stood at 24.3 million, more than 96% of which had already been registered under DTN, a subsidiary holding the 2.1GHz license from NBTC. Revenue from data services continues to grow strongly, reaching 64% of service revenues excluding IC. dtac, with a strong spectrum portfolio of 50MHz bandwidth and the largest contiguous bandwidth in the 1800MHz frequency band, is well positioned to capture the growth of data demand and provide best wireless services to its customer base on 2G/3G/4G technologies.

dtac maintains the outlook for 2017, comprising (1) service revenue excluding IC at the same level as last year, (2) EBITDA at least at the same level as last year, and (3) CAPEX in the range of THB 17 – 20 billion.

Lars Norling, dtac’s Chief Executive Officer, said “We continue to see strong growth in revenues from data services and postpaid segment, which indicates the continuing improvement in our network quality and perception. Our prepaid segment also starts stabilizing as indicated by a flattish QoQ development in average daily revenue. The launch of the ‘Smoothest’ network advertising campaign and the ‘Flip It’ brand platform will further strengthen our network perception and market position, and help make dtac become the No. 1 digital brand in Thailand in 2020.  Moreover, we continue investing heavily in our network to ensure that our customers have the best mobile Internet experience. Finally, our cash flow and financial position remain strong.”

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