AIS's 2Q16 net profit increases by 19% Maintains number one in revenue, profit and customer base

4 August 2016: AIS announced 2Q16 financial results posting strong net profit with 19% QoQ growth, servicing current customer base of 39.4 million. 100% dividend payout is maintained for 2016 performance.

AIS posted solid performance mainly driven by growth in postpaid segment with total revenue of Bt36,482mn and net profit of Bt9,596mn in this quarter. AIS has a current customer base of 39.4 million, comprising 5.8 million postpaid subscribers with 400,400 net additions in the quarter, and 33.5 million prepaid subscribers. The key trend in rising mobile data usage has been driven by higher smartphone penetration from more affordable price ranges, as well as attractive data price plans. AIS’s non-voice revenue increased by 20% YoY while the volume of usage per subscriber rose to 2.6GB/ month, doubling from the past two years. On the cost side, handset subsidy was reduced by half after the acquisition of 900MHz spectrum. For fixed broadband business, AIS Fibre achieved 115,000 subscribers in this quarter while expanding to 2.6 million homepasses in 15 provinces. Overall, AIS maintains number one in telecom industry, in terms of revenue, profit and customer base.

The outlook for the year 2016 was revised with an expectation of a slight increase in service revenue. EBITDA margin should improve to 38-39% since impact to 2G revenue can be mitigated and handset migration cost has been scaled down after acquiring 900MHz spectrum. CAPEX budgeted for full year 2016 is maintained at Bt40bn for 3G and 4G network, as well as fixed broadband business.

AIS retains a strong financial position while continuing network investment and spectrum license payment. With a prudent capital management, AIS is committed to dividend payout of 100% for 2016.

Mr. Somchai Lertsutiwong, CEO of Advanced Info Service (PLC) said “Our long-term positioning has been strengthened after acquiring 900MHz spectrum as we have sufficient spectra and widest coverage in Thailand to serve our customers efficiently, with continued service for 2G customers and robust 3G and 4G network. Since the launch in January 2016, our 4G network is currently available in 77 provinces with over 7 million users. We also have a professional team working toward becoming the number one digital service provider and are determined to deliver the best customer experiences.

For industry outlook, we see that competition in telecom industry focuses on quality, in terms of network, service and privilege for customers. AIS is focusing on driving and moving forward as a leading digital service provider. Our business expansion includes AIS Fibre that already covered 2.6 million homepasses and aims for 6.5 million homepasses in 24 provinces by the end of 2016.”