SET-listed mobile carrier Total Access Communication (DTAC) reported 13.8 billion baht in first-quarter service revenue, excluding interconnection charges (IC), declining by 2.5% year-on-year and by 1.4% quarterly, weighed down by slow economic recovery from the pandemic and intense market competition.

The firm booked a net profit of 726 million baht in the first quarter, down 11.6% year-on-year but up 324.6% quarterly.

However, the company added 305,000 customers in the first quarter, bringing the total subscriber base to 19.9 million by the end of the quarter.

Some 31% of its total subscriber base were postpaid users as of the end of the first quarter.

“Throughout the first quarter of 2022, the impact from the Covid-19 pandemic continued to linger in Thailand as a high number of Omicron cases were registered daily, resulting in a slow macroeconomic recovery while competition among operators escalated significantly,” said Sharad Mehrotra, DTAC chief executive.

The company continued to deliver on its strategic ambitions, which have translated into improved customer experience and engagement.

As of the first quarter, 34 provinces were covered by DTAC’s 5G 700-megahertz network, with more than 15,600 base stations on the 700MHz network.

According to Mr Mehrotra, the company will continue to add diverse value propositions in its services portfolio, including gaming and security protection, while refreshing propositions on financial services.

“In 2022, DTAC will continue to explore structural efficiencies and cash savings initiatives which have already delivered a decline in reported operating expenses of 2.6% year-on-year in the first quarter,” he said.

DTAC’s Ebitda (earnings before interest, taxes, depreciation and amortisation) in the first quarter amounted to 7.2 billion baht, an increase of 2.6% quarterly and a decline of 3.9% year-on-year.

“Our topline recovery was partially affected due to increased competition among operators in the first quarter,” said Nakul Sehgal, chief financial officer of DTAC.

Ebitda in the first quarter rose 2.6% quarterly due to structural initiatives and cost optimisation.

According to Mr Sehgal, the firm’s capital expenditures in the first quarter stood at 4 billion baht, up 6% quarterly and 22% year-on-year, driven by accelerated low-band rollout and capacity expansion.

Source: Bangkok Post