Lower Profit Contribution from AIS Pressures INTUCH’s NP to Remain Flat in 1Q 

Lower Profit Contribution from AIS Pressures INTUCH’s NP to Remain Flat in 1Q 

Intouch Holdings Public Company Limited (INTUCH) announced its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

INTOUCH reported a net profit of 2,660 million baht in 1Q21, flat QoQ but 3% down YoY. The flat QoQ was due to a lower profit contribution from AIS, following the recognition of a loss on foreign exchange in 1Q21, along with a tax incentive for that quarter, compared to a gain on foreign exchange and a full‐year tax incentive recorded in 4Q20. However, this was offset by a higher profit contribution from THAICOM, which recorded a gain on foreign exchange in 1Q21, compared to a loss in 4Q20. The profit contributions from AIS and THAICOM were lower than the same period of last year, as both companies reported a drop in revenue. 

 

AIS reported a net profit of 6,644 million baht in 1Q21, a decrease of 1.7% YoY. This was mainly due to lower ARPU, as a result of intense price competition and a drop in revenue from the tourist segment, although this was partially offset by an increase in the number of postpaid subscribers. Fixed‐broadband service revenue continued its upward trend, growing 17% YoY, due to higher demand during the Covid‐19 situation, despite lower ARPU. The demand for cloud and ICT services remained strong as they continued to support businesses in the digital era. In1Q21, network OPEX increased 19% YoY due to 4&5G network expansion, although this was offset by a drop in marketing and administrative expenses.

 

Meanwhile, THAICOM reported a net profit of 112 million baht in 1Q21, a decrease from 198 million baht in 1Q20. However, the net profit in 1Q21 was an improvement on the previous quarter, when a net loss of 258 million baht was recorded, and was due to efficient cost control of marketing and administrative expenses. In Addition, THAICOM recorded a gain on foreign exchange in 1Q21, compared to a loss in 4Q20.

 

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