Thailand-based dtac prepared for continued declines in profitability and revenue in 2021 after booking a sharp drop in net profit in Q4 2020 due to one-off expenses, but highlighted it delivered improved operational efficiency by controlling costs.
Net profit plunged 64.7 per cent year-on-year to THB281 million ($9.4 million), attributed to one-off costs including THB550 million in network equipment write-offs. Excluding exception items, it said profit was relatively flat, primarily due to reductions in network opex and general administrative costs.
Service revenue fell 10.3 per cent to THB14.4 billion and handset sales dipped 2.6 per cent to THB2.66 billion.
Its 2021 guidance forecasts service revenue and EBITDA to fall by low-single digits.
In a statement, CEO Sharad Mehrotra said while the impact of Covid-19 (coronavirus) has not yet passed, “we have embraced challenges to adapt and grow”.
“Despite external uncertainties on our path to recovery, dtac’s continued focus will be on strengthening the network to ensure high-quality, high-speed experience for the Thai mass market”.
CFO Nakul Sehgal said despite the macroeconomic impact on its business, its financial discipline in 2020 resulted in an increase in EBITDA margin.
Customer losses
Prepaid subscribers fell 10.2 per cent to 12.8 million, with ARPU down 8.8 per cent to THB131. Post-paid numbers dropped 5 per cent to 6.1 million and ARPU declined 4.2 per cent to THB518.
Full year capex fell 25.2 per cent to THB9.73 billion, with the ratio to total revenue dropping to 12.3 per cent from 16 per cent in 2019. The company said it rolled out 2,400 base stations for its network running on 700MHz spectrum.
Capex in 2021 is set at THB13 billion to THB15 billion.
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