DTAC Reports a 45% Drop in 1Q21 Earnings as D&A Edges Higher from 700MHz License

DTAC reported a net profit of 822 million baht in 1Q21, decreased 45% from higher depreciation and amortization from 700MHz license.

Total Access Communication Public Company Limited (DTAC) has reported its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

DTAC reported a net profit of 822 million baht in 1Q21, decreased 45.24% compared to a net profit of 1,501 million baht in 1Q20.

 

Total revenues in 1Q21 amounted to 20,516 million baht, increased 2.2% YoY from increase in handsets & starter kit sales and other operating incomes from TOT 2300 MHz network rental. Service revenues excluding IC amounted to 14,149 million baht, stabilizing at 0.5% QoQ growth after four quarters of consecutive loss from the pandemic impact and declined 7.7% YoY.

 

Depreciation and Amortization (D&A) of costs of services in 1Q21 amounted to 5,119 million baht, increasing 5.7% YoY, driven by amortization of 700 MHz licenses, depreciation of assets from IFRS16 capitalization, and continuing network expansion.

 

SG&A expenses in 1Q21 amounted to 3,347 million baht, decreased 8.5% YoY. The reduction was driven by ongoing structural efficiencies including lower level of provision for bad debt.

 

Cost of services excluding IC in 1Q21 amounted to 12,063 million baht, increased 6.8% YoY mainly from higher depreciation and amortization, and other cost related to partnership with TOT on the 2300 MHz spectrum.

 

Provision for bad debt in 1Q21 amounted to 381 million baht, decreased 33.5% YoY. The YoY reduction reflected the higher bad debt level in 1Q20 which has managed to come down respectively in four consecutive quarters. Postpaid bad debt, which contributed to almost all of bad debt, reached its lowest level at 3.2% of postpaid revenues in 1Q21.

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