AIS profit tumbles as mobile tariffs fall

5G News

Thai operator AIS lowered its guidance for core service revenue for 2020 after mobile turnover dropped in Q3 due to weak consumer spending driving declines in tariffs.

The market leader forecasts a low to mid single-digit decline in core revenue in the full year. In Q2 it expected the figure to drop by only a low single-digit.

In a statement, the operator said the overall pricing environment remained challenging as customers, affected by the sluggish economy, looked for value-for-money services, with rivals introducing smaller data packages with lower speeds to capture the low-budget segment.

Prepaid ARPU declined 12 per cent to THB157 ($5.12), while post-paid ARPU dropped 6.2 per cent to THB498.

Net profit in Q3 decreased 23 per cent year-on-year to THB6.76 billion, as total revenue fell 6.7 per cent to THB42.7 billion.

A 21 per cent jump in fixed broadband revenue partially offset an 8.3 per cent drop in mobile revenue to THB29.2 billion. The operator attributed the fall to the prolonged economic slump, price competition and revenue losses from the tourist segment.

Device sales stablished in the quarter, inching up 1.7 per cent to THB6.09 billion, after declining year-on-year in Q1 and Q2.

Its total user base was nearly flat year-on-year at 41.9 million, as an 8.6 per cent rise in post-paid subscribers helped cover a 4.3 per cent decline in prepaid subs.

The operator said its 5G footprint reached 60 per cent of Bangkok’s population and parts of 77 cities, giving it 16 per cent nationwide population coverage. With 5G handset prices starting at THB10,000, it expects adoption to be limited this year.


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