ADVANC Books ฿6.5Bn of Profit in 3Q as Fixed Broadband Continue to Expand 21%

Advanced Info Service Public Company Limited (ADVANC) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

 

ADVANC reported a net profit of 6,512 million baht for the quarter, decreased 26% compared to 3Q19, while recording 20.2 billion baht in the first nine months.

 

Fixed broadband business continued to grow 21%YoY in revenue driven by increased demand for home connectivity from the new normal, albeit low price offerings remained in the market to address weak spending power. Enterprise non-mobile business grew 6% YoY. Demand for enterprise data service (EDS) started to recover after having been affected from service downgrade during pandemic, while services on cloud, ICT, IoT, cyber security doubled with digitization trend.

 

Mobile 5G package was officially launched with a starting price of Bt699 on volume base plus value added contents, such as Augmented reality (AR), Virtual reality (VR) and cloud gaming, to uplift ARPU and provide real 5G immersive experience for users. Given an early stage of 5G technology, there are currently 16 models of 5G device with starting price over Bt10,000. Hence, adoption rate is expected to be limited this year. We continued to expand our 5G coverage which now reaches over 60% of Bangkok’s population with additional footprint in 77 cities for key strategic areas and overall covers 16% of Thailand’s population.

 

FY20 guidance is revisited, core service revenue is expected to contract low to mid-single digit, while maintaining EBITDA outlook with low-single digit decline and CAPEX of around Bt35bn.