True reports healthy Q2 on better cost controls

       True Corporation reported a strong consolidated net profit of 1.4 billion baht in the second quarter, compared with a loss of 3.5 billion in the same period last year, thanks to a sharp improvement in mobile phone operations together with cost controls and foreign exchange gains.
       But revenue was up only 0.3% in the quarter to 15.12 billion - and down 2.8% from 15.56 billion in the first quarter.
       For the first half, True recorded a consolidated net profit of 1.043 billion baht, up from a loss of 152 million a year earlier.
       President and CEO Suphachai Chearavanont said cost controls and the fourth consecutive reduction of interconnection charges as well as popular 8 Mbps broadband internet service helped the company despite the downturn and low seasonal business.
       The group's convergence strategy continued its progress with the number of subscribers using two or more products up 26% to 2 million households.
       Revenue in the second quarter, excluding interconnection charges (IC),rose by 0.8% to 12.8 billion baht. Earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped 15.8%year-on-year to 5 billion baht.
       At the mobile unit True Move, revenue excluding IC grew 2.4% year-on-year to 5.6 billion baht, thanks to lower net IC payments, costs controls, and a 7.3%increase in non-voice revenue along with strong postpaid subscriber growth.
       The company added 243,000 new subscribers in the second quarter,80,000 of whom were postpaid subscribers. Its postpaid subscriber base surged by 50%from a year ago, with postpaid revenue up 16.9% to 1.4 billion baht.
       TrueOnline's revenue was 6.5 billion baht, up 2.4%, driven by strong growth in new revenue streams from international direct dialling and data gateway businesses. Broadband revenue also grew 9.8% to 1.3 billion baht with a subscriber base of 647,000, helped by higher revenue from the 8Mbps premium package.
       But pay-TV unit TrueVisions reported a 3% drop in revenue to 2.3 billion baht due mainly to the rescheduling of its Academy Fantasia. But its subscriber base increased 37% to 1.6 million.
       Noppadol Dej-udom, the chief financial officer, said the second quarter's strong performance was considered a test of True's financial acumen.
       The group's long-term debt fell to its lowest level since the 1997 crisis.
       "Our net debt-to-EBITDA ratio now stands at 3 times, compared to 3.5 times last year," he said, adding that the company wanted to see the ratio at 2.5.