Advanced Info Service Public Company (ADVANC) Q2 2024 earnings summary

Executive summary

• 2Q24 and H1 2024 saw robust revenue and profit growth across mobile, broadband, and enterprise segments, driven by genuine demand, operational efficiency, and Triple T Broadband (TTTBB) consolidation.

• Net profit for Q2 2024 was ฿8,577 million, up from ฿7,181 million, and for H1 2024 was ฿17,029 million, up from ฿13,939 million year-over-year.

• Focus on quality, profitability, and digital transformation supported performance despite cautious Thai economic recovery.

• Interim dividend of ฿4.87 per share (85% payout), totaling ฿14,484 million, approved for September 2024.

Financial highlights

• 2Q24 core service revenue rose 19% YoY and 2% QoQ to Bt40.2bn; 1H24 up 18% YoY to Bt79.7bn.

• 2Q24 EBITDA increased 19% YoY to Bt27.6bn; 1H24 EBITDA up 21% YoY to Bt55.4bn.

• 2Q24 NPAT grew 19% YoY and 1.5% QoQ to Bt8.6bn; 1H24 NPAT up 22% YoY to Bt17.0bn.

• Gross profit for Q2 2024 was ฿19,032 million, up from ฿15,070 million year-over-year.

• EBITDA margin for H1 2024 was 69.5%, with guidance for H2 at 66.6%.

Outlook and guidance

• FY24 guidance maintained: core service revenue growth of 13–15%, EBITDA growth of 14–16%.

• Despite exceeding first half guidance, full-year guidance remains unchanged due to economic uncertainty and seasonality.

• Cautious view for 2H24 due to low seasonality, revised Thai GDP, rising household debt, and weak consumer sentiment.

• Second half expected to see increased marketing spend to maintain momentum.

• Management expects no material impact from ongoing legal disputes.