Advanced Info Service Public Company Limited (ADVANC) has reported its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;
ADVANC reported a net profit of 6,643 million baht in 1Q21, slightly decreased by 1.66% from a net profit of 6,756 million baht in 1Q20 as depreciation and amortization rose from new spectrum and expansion.
In 1Q21, core service revenue was 32,425 million baht, decreased 2% YoY but increasing 1% QoQ from rebounded mobile revenue and robust growth in fixed broadband. Continuous 5G/4G network expansion led to increasing cost of service 3.9% YoY and 3.4% QoQ; however, SG&A was well-managed and dropped 12% YoY and 8.8% QoQ, resulted in stabilized EBITDA with 0.9% YoY and 1.6% QoQ.
The company stated that driven by rising home connectivity demand during the pandemic, AIS Fibre added 95,000 and reached 1.43 million subscribers with 17% YoY growth which drove 17% YoY revenue growth. Despite eased price competition since 4Q20, ARPU continued declining 10% YoY from new acquisition on low price packages. Enterprise non-mobile business continued to deliver low-teen digit growth YoY with rising demand on cloud, data center and ICT solutions following the digitalization trend.
As for the 5G mobile subscriber, the growth remained strong with 480,000 additional subscribers in 1Q21 driven by iPhone12 launch. Total 5G subscribers reached 719,000 or 6.8% of postpaid subscribers as of the end of 1Q21, while AIS is on track to 5G subscriber target at 1 million by the end of 2021. AIS 5G service saw 10-15% uplift in ARPU of early adopters as the 5G price plan geared toward larger data volume and value added services.
The fixed broadband market continued to grow healthily following work and learning from the home trend while the price competition was slightly improved as the operators had been focusing on added value offering such as speed boost, equipment upgrade, service quality and premium contents. Although the operators were able to retain a higher starting price point of Bt399/month, deep discount offering had been deployed to attract new customers and prevent churn with24-month contract, resulting in declining ARPU trend.