ADVANC Reports a Better-Than-Expected 2Q Profit at ฿7Bn, Offering ฿3.24 Dividend

Advanced Info Service Public Company Limited (ADVANC) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

ADVANC reported a net profit of 7,001 million baht, decreased 9.71% compared to a net profit of 7,754 million baht in 2Q19. Still, the earnings were better than expected as analysts estimated the company to report a net profit of 6,250 million baht, decreased 19% YoY due to the lockdown.

 

The company also offered a better-than-expected dividend payment at ฿3.24/share to be paid on September 3, 2020, and an ex-dividend date on August 19, 2020. The analyst earlier expected the company to offer a dividend payment at ฿3.10/share.

 

The decrease in net profit was mainly due to a decline of 4.1% YoY  and 1.4% QoQ in ADVANC’s revenue due to the coronavirus pandemic. In 2Q20, cost of service was Bt20,439mn, increasing +1.3%YoY, flat QoQ due to higher amortization from new spectrum offsetting by lower regulatory fee. SG&A expenses were Bt6,021mn, decreasing -15%YoY, -4.2%QoQ from slowdown in marketing activities and decrease in admin & other expenses.

 

In 2Q20, total mobile subscribers stood at 41mn, decreasing 0.3%QoQ. Postpaid segment gained 396k subscribers mainly driven by prepaid-to-postpaid migration, while ARPU declined 0.4%QoQ to Bt523 reflecting price competition and lower inter roaming revenue. Prepaid segment saw a decline of 532k due to COVID-19 affecting tourist SIM, while prepaid ARPU declined -3.9%QoQ to Bt156 following low price unlimited data plan as well as the effect of the NBTC’s campaigns causing lower top-up. Overall, blended ARPU declined to Bt239 or 1.1%QoQ.

AIS fibre gained 112k net adds in 2Q20, resulted in total subscribers of 1.2mn. Underpinned by the work-from-home trend, AIS fibre had robust acquisition with the highest net add since its inception. ARPU however dropped 4.8% QoQ to Bt489 pressured by the popularity of a low-price plan of Bt399 for 100Mbps speed.