DTAC profits slip 76% on network expenses
published : 16 Jul 2018 at 19:21
Total Access Communication Plc (DTAC), the country's third largest mobile operator, reported on Monday a 76% drop in second-quarter earnings due to higher expenses and network investment.
DTAC reported net profits of 179 million baht in the three months ending in June versus 743 million baht a year earlier, missing estimates of 257 million baht based on a Reuters survey of four analysts.
DTAC said the drop in profits was due to a payment of 840 million baht to state-owned TOT for roaming services on the 4G-2300MHz network, bringing operating costs up 71% from a year earlier.
Service revenue was down 2.3% to 16 billion baht and DTAC expects it to be around the same level as the previous year at 16.4 billion baht.
DTAC expects earnings before interest, taxes, depreciation, and amortisation (Ebita) margin between 34 and 36% for 2018, from the current levels of 40.4%.
DTAC lost 200,000 subscribers this quarter, down 8.4% from a year ago.
Analysts have said DTAC was losing market share due to spectrum inferiority.
Last month, DTAC said it was "in dialogue" with the National Broadcasting and Telecommunication Commission for a 37.99 billion baht spectrum auction for the 900 MHz spectrum to be held in August.
The mobile operator, which is 43% owned by Norway's Telenor Group, has concession on two separate licences on the 850 MHz and 1800 MHz spectrum which are set to expire in September.
DTAC plans capital expenditure of 15-18 billion baht to expand its coverage this year and a dividend policy of at least 50% of net profits.