AIS tallies 6.7% Q2 profit dip on lockdown
published : 7 Aug 2020 at 04:00
newspaper section: Business
Advanced Info Service (AIS), the country's top mobile operator by subscribers, reported a second-quarter net profit of 7.23 billion baht, a drop of 6.7% year-on-year, but a gain of 3.3% quarterly, weighed down by the impact of the pandemic.
The company's revenue stood at 42.3 billion baht, a drop of 4.1% year-on-year and 1.4% quarterly.
AIS indicated the pandemic hurt its first-quarter revenue and this effect continued on consumer spending in the second quarter, especially for mobile phone usage.
However, home broadband segment AIS Fibre gained 112,200 new subscribers as demand for home internet grew during the lockdown.
Somchai Lertsutiwong, chief executive of AIS, said the lockdown measures, though they protected people's health, have affected the country's economy.
"Telecom businesses felt the pinch with a huge decline in tourists and travellers causing AIS shops, Serenade Club and AIS Telewiz kiosks to shut temporarily in compliance with the lockdown," Mr Somchai said.
"AIS also offered a subsidy in compliance with the National Broadcasting and Telecommunications Commission to ease consumers' burden, providing free data and voice calls in April and May, which left a dent in our mobile revenue."
For mobile business, AIS continues to have the most customers at 41 million mobile numbers, comprising 9.5 million postpaid and 31.5 million prepaid.
AIS has gained 395,600 postpaid customers, but lost 531,900 in prepaid.
The total number of AIS Fibre subscribers increased to 1.2 million and the gross revenue from home internet was 1.68 billion baht -- a gain of 22% year-on-year.
AIS' enterprise business continued its growth as a result of demand for business solutions, mainly data centres, cloud, and ICT solutions.
The company is committed to investing 35 billion baht to expand 5G and 4G networks and strengthen digital infrastructure, said Mr Somchai.