TRUE’s 2Q Profit Declines Sharply to ฿1,060m after No Asset Sales to DIF in 2019

True Corporation Public Company Limited (TRUE) has reported its 2Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

TRUE reported a plummet of profit in 2Q19 to record at THB 1,060 million, decreased 89.13% from a net profit of THB 9,751 million in 2Q18 mainly due to the lower revenue from product sales in the second quarter of 2019 which declined from THB 30,950 million in 2Q18 to THB 3,487 million in 2Q19 due to previous year’s high base from the asset sale to DIF. However, revenue from product sales in 2Q19 showed a better result, increased 6.3% QoQ.

EBITDA in 2Q19 was THB 7,905 million, increased 4.2% QoQ, but decreased 75.4% YoY. The YoY decline was driven by impact from asset sale to DIF last year including the gain and related rental payments as well as loss from product sales following TFRS15 adoption this year. Excluding these items, EBITDA grew from the previous year with EBITDA margin on service revenue of 36% in 2Q19.

Depreciation and amortization expenses dropped 16.7% YoY to THB 6.5 billion mainly due to the absence of accumulated subsidy amortization due to TFRS15 adoption. The QoQ increase of 6.9% was primarily driven by network expansion.