AIS posts 41,715 million-baht Total revenue in Q3. Outstanding capital management gives ample cash flow to support 5G network investment of 35 billion baht
5 November 2020: AIS reported Q3 Total revenue at 41,715 million baht, down slightly 1.3 % compared to the previous quarter. Net profit totaled 6,764 million baht, stable earnings compared to Q2 excluding loss from exchange rate. Despite recession for nine consecutive months, AIS financial position remains healthy thanks to outstanding capital management enabling network investment to proceed as planned. The telco’s 30th anniversary in October gave AIS customers and subscribers of other telecom operators first-hand experience in 5G-enabled immersive entertainment featuring Augment Reality (AR), Virtual Reality (VR), and Cloud Game. The event also marked the launch of 5G packages first time in Thailand and provides a foundation of national digital infrastructure enabling business sector to grow and prosper sustainably.
* Exclude Thai Financial Reporting Standards (TFRS) 16
Mr. Somchai Lertsutiwong, Chief Executive Officer of Advanced Info Service Public Limited Company or AIS, said, “In the past nine months, we have seen Thailand’s adaptabilities to fight with the economic crisis which is likely to linger. One key element companies in all levels have adopted in order to stay afloat is utilizing digital technology to achieve maximum performance ranging from increasing work efficiency to reducing operating costs. For AIS, we look at 5G technology as digital infrastructure essential for Thailand’s economic recovery and uplifting industrial sector sustainably.”
Last October, AIS launched fully commercial 5G service available for all Thais nationwide. Enjoy total experiences from various packages and digital contents including AIS 5G Max Speed, Thailand’s first 5G package featuring 1Gbps speed when using with AIS 5G; and AIS 5G application including AIS 5G Play AR, AIS 5G Play VR, and AIS 5G Cloud Game. AIS customers can choose 5G immersive experiences to suit their lifestyles.
AIS total revenue in Q3 was 41,715 million baht, down 1.3% compared to Q2 and 6.7% YoY. AIS remained strong in mobile-phone business having the highest number of subscribers at 40.9 million numbers, having 9.7 million postpaid subscribers posting an increase of 235,000 subscribers while prepaid subscribers were down to 31.2 million equal to a loss of 313,000 subscribers. Such figures were mainly due to the COVID-19 pandemic which has been damaging Thailand’s economy since Q1 through Q3. Data consumption averaged 17.2 gigabytes per month, up 1.3% from Q2. The number of 4G customers continued to grow equal 76% of total customer base.
For home internet, AIS Fibre continued to grow with 53,000 new subs totaling 1.26 million. Q3 total revenue was 1,785 million baht equal to a 21% growth YoY. The company expects to reach 1.3 million subscribers by the end of this year. Enterprise business continued to grow due to increasing demands in transforming business operation with digital technology mainly Cloud, data center, and IT solution. AIS digital infrastructure grows strongly, creating a competitive edge to better develop solutions that fulfill enterprise demands.
The COVID-19 pandemic and global economic downturn were the two dominating threats affecting Thailand’s businesses as evident in weak purchasing power and loss of foreign tourists. Adhering to disciplined capital management and effective cost control, AIS was able to retain profitability prepared for any uncertain situations. The company reported its net profit at 6,764 million baht,* down 6.5% compared to the previous quarter. The net profit was considered stable with the exclusion of exchange rate loss. AIS financial position remained healthy having adequate operating cash-flow to pay for telecom license fees and support 5G and 4G network expansions as planned in order to retain its leadership in telecom industry. AIS’s cash flow totaled 65,000 million baht from its nine-month operation, enabling the company to proceed with 2020 investment budget of 35,000 million baht.
* Exclude Thai Financial Reporting Standards (TFRS) 16
“The return on 5G investment this year is not only for short term but rather long term to strengthening Thailand’s competitiveness and attracting foreign investors. It may take at least two more years to reach mass scale due to three main factors – network quality, 5G-enabled mobile devices at reasonable price, and mobile applications compatible with 5G and proven to benefit particular groups of users. AIS believes in our network quality, advanced technology, services from the heart that fulfill customers’ desires, AIS privileges catered for every lifestyle, and organizational management skill emphasizing corporate social responsibility. These pillars reflect AIS commitment to providing product and service excellence throughout our 30 years of business. We are a Thai company ready to grow side by side with every Thai as always,” Mr. Somchai concluded.