By k on May 25, 2009

True Corporation reported a consolidated net loss of 360 million baht in the first quarter, compared with a profit of 3.35 billion in the same period last year. The loss, however, was a sharp improvement from a loss of 1.581 billion baht in the fourth quarter last year.

The diversified telecoms group said it was encouraged by the performance in the first quarter, helped by financing activities and increased revenue in pay television and broadband services.

President and CEO Suphachai Chearavanont said cost controls and reduced interconnection charges also helped the company.

“The momentum of these moves led to growth in our revenue and earning before interest, tax, depreciation and amortisation (EBITDA) since the third quarter last year,” he said.

“Despite the unfavourable economic situation, our EBITDA and EBITDA margin in the first quarter recorded strong growth, while revenue also improved slightly.”

Revenue in the first quarter was down 2.3% year-on-year to 15.56 billion baht, but was up 2.4% from the fourth quarter.

At the mobile unit True Move revenue excluding interconnection charges grew 2.8% from the fourth quarter to 5.9 billion baht, thanks to lower net interconnection charge payments, cost controls and increased non-voice revenue.

The company added 250,000 new subscribers in the first quarter, bringing its total to 15 million.

True Online reported revenue of 6.6 billion baht, up 18%, fuelled by growth in broadband revenue, up 11.8% year-on-year to 1.3 billion baht. Broadband subscribers grew to 641,000 customers.

The pay-TV unit TrueVisions posted a 4.8% increase in revenue to 2.4 billion baht in the first quarter, with a total of 1.58 million subscribers.

Noppadol Dej-udom, the company’s chief financial officer, said the first quarter’s loss was due mainly to a foreign-exchange loss of 379 million baht. He noted that the group’s net profit of 3.4 billion baht in the first quarter last year included a forex gain of 2.5 billion baht.

He also said the group’s financial position had been improved through its recent rights offering and local bond issue, providing it with 11 billion baht in cash now. Its debt-to-EBITDA ratio now stands at 3.0 times, down from 3.8 in the fourth quarter.

True shares closed yesterday on the Stock Exchange of Thailand at 1.61 baht, up one satang, in trade worth 17.62 million baht.

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