Dtac posted fiscal 2014 results showing a slight increase in net profit despite a slight decline in revenue while it is pressing on with 2.1-GHz LTE and has pledged $428 million in capex this year.
Strong growth in data revenues and sale of handsets were offset by the decline in voice, international roaming, and interconnection revenues.
Total subscriber base at the end of the quarter stood at 28 million, of which 20 million had been ported to the 2.1GHz licensed network. Total revenues for 2014 amounted to $2.77 billion (90.4 billion baht), down 4.4% from previous year as a result of the slowdown in overall economy and intensified competition. However, net profit slightly increased to $327 million (10.7 billion baht).
Dtac’s Interim CEO Sigve Brekke said, “Net profit for 2014 grew marginally despite lower revenues from economic slowdown and high level of competition. However, growth in mobile data services still offer a huge opportunity for wireless operators
“Dtac intends to capture the growth by continuing to improve its network, focus on data monetization, and provide the best digital services. Moreover, Dtac is also working with the industry towards asset sharing, and trying to move the industry towards a healthy competition.”
EBITDA margin improved 3 percentage points to 34% from regulatory cost saving, which was partly offset by handset business and higher selling, marketing, and general administrative expenses.
The Telenor subsidiary has increased smartphone penetration to 48%, up from 33% at the end of 2013. The telco said it is on track to complete the roll out of 6,500 new 3G and 4G LTE base stations in Bangkok and 30 major cities by the first quarter of 2015 and that it be investing a minimum capex of $428 million (14 billion Baht) in 2015.
Dtac expects growth in line with the general recovery of the economy.
Meanwhile, Dtac’s 2G concession holder CAT Telecom has asked the state enterprise superboard for the go-ahead on a plan to convert concessionary assets into a joint Dtac-CAT company that would exclusively service Dtac going forward and bring an end to the claims and counter-claims between the two telcos.