TRUE SUCCESSFULLY COMPLETED ITS RECAPITALIZATION AND REPORTS STRONG GROWTH IN THE THIRD QUARTER 

TRUE SUCCESSFULLY COMPLETED ITS RECAPITALIZATION
AND REPORTS STRONG GROWTH IN THE THIRD QUARTER

BANGKOK, November 19, 2014 – True Corporation PLC (SET: TRUE) posted another strong YoY financial improvement in the third quarter of 2014 due to ongoing revenue growth and continued management of marketing-related expense. The recent success of the Group’s recapitalization and partnership with China Mobile is a major stepping stone for future sustainable growth.

In the third quarter of 2014, True Group reported consolidated service revenue of Baht 17.1 billion and EBITDA of Baht 5.1 billion. Excluding last year’s performance contributions from the eight non-core subsidiaries that were sold in 4Q13 for a meaningful performance comparison, EBITDA improved by 50% YoY on revenue growth, a further decline in selling and marketing expenses, and gain from transferring towers to the TRUE Telecommunications Growth Infrastructure Fund (“TRUEGIF”).

Net loss from ongoing operations, excluding deferred income tax, was Baht 1.1 billion in 3Q14, improving strongly at 62% YoY due to higher EBITDA and lower interest expense given positive impact from the Group’s recapitalization with significant debt reduction.

True President and CEO Suphachai Chearavanont said, “True Group reinforced its convergence leadership in the third quarter, offering a comprehensive range of products that fully respond to customers’ lifestyles and demands through superior network quality, advanced technologies, and excellent services. The Company’s convergence packages continued to be well received by the market. In addition, True’s service revenue market share for the cellular business increased from 16.3% to 17.5% this quarter thanks to our localized marketing activities. This, together with True Group’s convergence strategy, is one of the important factors that will transform True’s profitability adding business value while generating customer acquisitions. The combined subscriber base of the Group’s three core products expanded to 27.8 million by the end of 3Q14.”

True Mobile Group remained committed to offering the best mobile Internet experience to customers through its superior network quality in 4G, 3G, and WiFi services as well as continued to focus on developing innovative products and services to serve strong demand of data usage. During the quarter, TrueMove H launched attractive 3G device-bundling packages to facilitate customers’ accessibility to its best 3G services under the brand “True Smart Series”. In addition, the localized marketing activities and the 4G campaign have continued to receive positive market response. This further boosted True Mobile Group’s subscriber base up to 23.4 million. The Group now has over 800,000 4G customers with an aim to reach 1,000,000 customers by the end of this year.
 
TrueOnline sustained its broadband Internet leadership with excellent quality of network and services as well as competitive convergence packages that continued to bring greater value to customers. Its FTTx network will cover 4 million households in Bangkok while TrueOnline will also expand its broadband network to upcountry nationwide to cover a total of 10 million households within 2016. Moreover, TrueOnline is the first and only operator to set a new record of high speed Internet in the country by upgrading the standard speed to 15 Mbps from 10 Mbps at the same price. These high-value offerings resulted in remarkable quarterly net adds of more than 70,000 subscribers, expanding its subscriber base to 2.0 million by the end of the third quarter.
  
TrueVisions continued to enhance customers’ viewing experience while maintaining its pay TV leadership by equipping its portfolio with a wide variety of local and international quality content. The business also strengthened its mid-tier and mass-tier offerings with the redesigned and high-value packages that better meet the preferences of these target segments. In addition, TrueVisions aims to expand its HD offering from 50 channels to over 66 channels by this year end. At the end of 3Q14, TrueVisions increased its customer base to reach 2.4 million.

True Group CFO Noppadol Dej-Udom said, “The successful recapitalization in the third quarter resulted in a significant debt repayment of more than Baht 55 billion, leaving only unsecured debt within True Group. This not only removes financial covenant concerns but also reduces the Group’s interest and cash flow burden while lowering our future cost of debt through improved credit rating. True Group’s net debt-to-EBITDA ratio dropped to only 1.3 times in 3Q14. These, together with ongoing revenue growth, efficient cost management and synergies with China Mobile should be key contributing factors for the Group to maintain net debt-to-EBITDA ratio at below two times as targeted going forward.”
 


 

 


      
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