The TFRS 16 Adoption Affects TRUE to Post a Net Loss of ฿161mn in 1Q20

True Corporation Public Company Limited (TRUE) has reported its 1Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

TRUE reported a net loss of 161.2 million baht in 1Q20, representing a change of greater than 20% YoY, mainly due to the TFRS 16 adoption negatively affected TRUE’s bottom line performance of approximately 0.2 billion baht. This resulted in a net loss to shareholders of the parent company totaling 161.2 million baht in 1Q20 compared to profit of 1.5 billion baht in 1Q19 which had positive impact from DIF incremental value totaling 1.2 billion baht. Excluding the TFRS 16 impact, TRUE recorded a profit of Baht 48 million in the first quarter of 2020.

 

TRUE’s consolidated service revenue increased 3.0% YoY to 26.6 billion baht in 1Q20 driven mainly by the cellular business whose service revenue grew 5.2% YoY with higher nonvoice usage. EBITDA expanded 12% YoY due to service revenue growth and 5% QoQ on lower selling and marketing expenses to 8.5 billion baht excluding the effect of the new accounting standard (TFRS16). Reported EBITDA and operating profit were 12.2 billion baht  and 2.3 billion baht respectively.