Thai mobile operator DTAC’s total revenues for the first quarter decreased by 5.3 percent to THB 21.6 billion, due to lower handset sales, declining voice revenue, and the reduction of the IC rate last year, the company said. Service revenue decreased 2 percent year-on-year to THB 16.4 billion. The decline was mainly due to decreasing voice revenue, partially offset by data and IDD revenue growth.
EBITDA stood at THB 7.32 billion in the first quarter, down by 0.9 percent year-on-year. Net profit reached THB 1.2 billion, down by 54 percent year-on-year. The decline was mainly due to higher depreciation and amortization from network expansion.
DTAC ended the first quarter with a total customer base of 25.5 million, down from 28.4 million in the year-earlier period. The operator posted a net addition of 225,000 subscribers compared to the fourth quarter of 2015. Blended ARPU reached THB 217, up 11 percent from THB 215 in March 2015. MoU decreased by 12 percent year-on-year to 253, negatively impacted by voice-to-data substitution, the company said.
DTAC says it maintains its 2016 guidance despite lower service revenue excluding IC year-on-year, and high EBITDA margin level in the first quarter of the year. Service revenue excluding IC is expected to be in range of flat to slight increase from FY15. CAPEX spending is expected to be at the same level as the previous year, which was about THB 20 billion, and it will mainly be used for the expansion of 4G network and densification of 2.1GHz network. EBITDA margin is expected to be in the range of 27-31 percent, depending in large part on the amount of handset subsidies required.
