BANGKOK, August 15, 2014 – True Corporation PLC (SET: TRUE) reported enhanced YoY financial performance in the second quarter of 2014, driven by continued cost control. This paves the way for the Group’s sustainable growth after its planned business transformation and recapitalization.

In the second quarter of 2014, True Group reported consolidated service revenue of Baht 16.3 billion and EBITDA of Baht 4.7 billion, improving by 8.8% from the same period last year. Excluding last year’s performance contributions from the eight non-core subsidiaries, which were sold in 4Q13, for an accurate YoY performance comparison, EBITDA increased strongly at 21.1% YoY due to growing revenue and ongoing cost management mainly related to selling and marketing expenses. 

Net loss from ongoing operations, excluding deferred income tax, was Baht 935 million in 2Q14, improving strongly at 57.1% YoY on growing EBITDA, interest expense reduction and a recognition of the TRUE Telecommunications Growth Infrastructure Fund (“TRUEGIF”)’s quarterly performance.

True President and CEO Suphachai Chearavanont said, “The year 2014 marked another important transformation for True. The Group is determined and well placed to become an all-rounded convergence leader through attractive combinations of its various products, enabling it to provide customers with the best fit offerings. This was driven by True Group’s excellent service quality, fully-diversified content and nationwide network coverage, including TrueMove H’s 3G network which already covers 97% of the Thai population, and on top of that 4G high speed network overlay as well as TrueOnline’s broadband coverage, via FTTx and DOCSIS technologies, which will reach 5 million households by the end of this year.

Meanwhile, True Group’s localized marketing activities and competitive convergence packages, mainly the “True Sook x3”, have received excellent market response, facilitating customer acquisition and stickiness in all core products. This drove the combined subscriber base of True Group’s three core products to 27.48 million, comprising 23.19 million of True Mobile Group, 1.94 million of TrueOnline’s broadband Internet and 2.34 million of TrueVisions, at the end of 2Q14.

True Mobile Group continued to grow mainly on strong acquisition in the postpaid segment, driven by TrueMove H’s superior network quality, facilitated by an ever-growing demand for data usage. In addition, the “Change...4G Advance Forward by TrueMove H” campaign, has received positive market response given TrueMove H’s position as Thailand's first 4G provider, whose 4G network already covers BMA and 14 other major cities in Thailand. There are now over 600,000 4G customers and growing fast.
TrueOnline continued its success with high quality services especially through advanced DOCSIS 3.0 and FTTx technologies that offer stability and high-speed signals. Its superior fiber networks are capable of delivering gigabit maximum speeds setting a new speed record for Thailand’s broadband market. Meanwhile, TrueOnline is the first operator to upgrade the standard broadband speed to 30 Mbps via the high-value convergence package “True Sook x3” with a very competitive price.
TrueVisions remained committed to differentiate itself through a large selection of top international and local content, of which 50 channels are offered in a high-definition format. Meanwhile, the digital TV channel “True4U”, one of the top five most popular digital TV channels, continued to produce quality content, reinforcing its position as an EnterTRENDment channel that better meets customer lifestyles.

Finally, the strategic partnership with China Mobile will strengthen the Group’s competitiveness through synergies in several areas as well as enhance its capital structure and financial position, paving the way for sustainable growth.”

True Group CFO Noppadol Dej-Udom said, “We are pleased with the cost control implementation which has shown positive results since the beginning of the year. In addition, on July 25, True Group’s shareholders approved the Company’s recapitalization plan, totaling Baht 65 billion, at the Extraordinary General Meeting of Shareholders 1/2557. This capital raising is an important step for the Group’s improved financial performance through significant debt reduction while the partnership with China Mobile will be another key contributing factor for strengthening True Group’s competitiveness and sustainable growth.”



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