True Corporation Public Company (TRUE) Q2 2024 earnings summary

Executive summary

• Achieved six consecutive quarters of EBITDA growth, reaching THB 24.3 billion in Q2 2024, with normalized net profit of THB 2.4 billion, nearly triple the previous quarter.

• Service revenue grew 5.7% year-over-year and 0.6% quarter-over-quarter, led by strong mobile and online segment performance.

• Network modernization advanced, with 42% of sites upgraded and 7,100 sites completed since amalgamation, supporting 92%–99% 5G coverage in key regions.

• Focused on quality subscriber acquisition, AI-powered customer service, and ESG initiatives, including e-waste innovation and net zero by 2050; recognized as the most sustainable telecom company globally by DJSI.

• Operational expenses (excluding D&A) declined 3.9% year-over-year (normalized), reflecting synergy realization from the amalgamation.

Financial highlights

• EBITDA grew 9% year-over-year (15.5% normalized), and 3.1% quarter-over-quarter; EBITDA margin to service revenue improved to 58.6%.

• Normalized net profit reached THB 2.4 billion, up from THB 0.8 billion in Q1; reported net profit impacted by THB 4.3 billion one-time impairment related to network modernization.

• Net debt reduced by THB 27 billion year-over-year to THB 435 billion; leverage ratio improved from 5.7x to 4.7x.

• CapEx for Q2 was THB 6.1 billion, totaling nearly THB 10 billion for H1 2024; CapEx guidance for 2024 is ~THB 30 billion.

• Effective interest rate on debt stands at 3.9%–4.1%; new debentures issued at 3.8%.

Outlook and guidance

• Upgraded 2024 guidance: service revenue growth (excluding interconnect) revised to 4–5%, EBITDA growth to 12–14%, and CapEx maintained at ~THB 30 billion.

• Normalized net profit expected to remain positive for the year, excluding one-time write-offs from network modernization.

• Dividend policy: payout of at least 50% of net profits, subject to financial position and business plans.