Advanced Info Service Public Company (ADVANC) Q3 2024 earnings summary

Executive summary

• Achieved resilient business growth in Q3 2024, supported by economic stability, tourism recovery, and government stimulus, with a focus on operational efficiency, profitability, and sustainable practices, including green financing initiatives.

• Mobile business experienced healthy growth due to increased data consumption, quality subscriber growth, and returning tourists.

• Broadband subscriber base neared 5 million, driven by high-quality customer acquisition, upselling, and the TTTBB acquisition.

• Enterprise non-mobile services benefited from increased demand for EDS, cloud, and digital transformation, with a large cloud project boosting revenue.

• Minimal operational impact from recent floods, with proactive measures to support affected customers.

Financial highlights

• Q3 2024 consolidated revenue was THB 52.2 billion, up from THB 46.1 billion in Q3 2023; net profit for Q3 2024 was THB 8.8 billion, up from THB 8.1 billion year-over-year.

• 3Q24 core service revenue rose 20% YoY to Bt40.8bn, EBITDA increased 17% YoY to Bt27.7bn with a 53% margin, and NPAT grew 7.9% YoY to Bt8.8bn.

• Nine-month performance exceeded guidance, with revenue at THB 156.8 billion and net profit at THB 25.8 billion.

• Handset sales in Q3 were strong with high gross margin, expected to continue in Q4 due to high season and potential government stimulus.

• Network OpEx dropped significantly in Q3 due to rental negotiations and energy efficiency, establishing a new lower cost base.

Outlook and guidance

• FY24 guidance: core service revenue growth of 13-15%, EBITDA growth of 14-16%, and CAPEX (ex-spectrum) of Bt25-26bn.

• Guidance remains unchanged for the year, with management policy to avoid revisions close to year-end.

• CapEx for next year may decrease if business remains stable, but final strategy is pending.

• ARPU expected to improve slightly in Q4 and into next year, with more room for prepaid growth.

• Dividend policy remains consistent, with regular and interim dividends planned.