True Corporation Public Company (TRUE) Q3 2024 earnings summary

Executive summary

• Achieved seven consecutive quarters of EBITDA growth, reaching THB 25 billion in Q3 2024, up 16.5% YoY and 2.7% QoQ, with normalized net profit at THB 3.1 billion.

• Network modernization reached 64% completion, with 10,800 sites upgraded, covering 92% of Thailand with 5G and serving 12.4 million 5G subscribers.

• Strategic expansion into digital, cloud, and AI-powered IoT solutions, with strong growth in smart home and cybersecurity segments.

• Responded to flooding crisis with rapid network support and community relief, maintaining uninterrupted service.

• Auditor's review found no material misstatements, but highlighted material uncertainties from ongoing lawsuits against the Group.

Financial highlights

• Service revenue grew 4.2% YoY and remained flat QoQ; total revenue increased 1.4% YoY, with Q3 service revenue at THB 41.5 billion.

• EBITDA grew 16.5% YoY and 2.7% QoQ to THB 25 billion, with EBITDA margin to service revenue reaching 60.2%.

• Normalized net profit was THB 3.1 billion in Q3, up THB 0.7 billion QoQ; nine-month normalized profit reached THB 6.3 billion.

• Net debt reduced by THB 37 billion YoY, with leverage (net debt/EBITDA) down to 4.4x from 5.6x YoY.

• CapEx in Q3 was THB 9.9 billion, mainly for network modernization.

Outlook and guidance

• 2024 EBITDA growth guidance of 12%-14% will be surpassed, with Q4 expected to be seasonally strong.

• Network modernization to be completed by Q3 2025, with synergy realization plan running through 2026.

• Dividend discussions expected in the second half of 2025, contingent on reported profitability.

• 2025 guidance and revised KPIs to be provided after Q4 results.

• Upcoming debenture issuance planned for November 2024.