Thai mobile operator DTAC’s total revenues for the second quarter decreased by 9.7 percent year-on-year to THB 19.7 billion, due to lower handset sales, and declining voice revenue. Service revenue decreased 2.4 percent year-on-year to THB 16 billion.
EBITDA stood at THB 6.6 billion in the second quarter, down by 1.8 percent year-on-year and 9.8 percent quarter-on-quarter. Net profit reached THB 141 million, down by 90 percent year-on-year. The decline was mainly due to lower EBITDA, restructuring cost, and higher depreciation & amortization expenses, resulting from high capex to expand network coverage and improve network quality, the company said.
DTAC ended the second quarter with a total customer base of 25 million, down from 25.5 million in the first quarter of this year, due to contraction in the prepaid segment. The operator’s 4G user base reached 3.5 million in the second quarter, up from 2.9 million in the previous quarter. Dtac targets 6 million 4G subscribers by year-end.
Blended ARPU reached THB 211, up 7 percent year-on-year. MoU declined 17 percent year-on-year to 138 minutes, negatively impacted by voice-to-data substitution, including voice-over-IP, the company said.
Dtac has adjusted its 2016 guidance for service revenues excluding IC to be slight decline from the previous year to reflect the first half results and expected market situation in the second half of FY16. EBITDA guidance is revised to 31 percent – 33 percent, with handset subsidy level as a swing factor. This year CAPEX guidance is maintained at about the same level as last year, which was about THB 20 billion.
The company is maintaining its dividend policy which is to pay out dividend not less than 50 percent of the company’s net profits, depending on financial position and future business plans, and aims to pay dividend semi-annually. In the first 6 months of FY16, the company pays the interim dividend at the rate of THB 0.42 per share.
