SET-listed Advanced Info Service (AIS), Thailand's largest mobile operator by subscribers, posted 7% year-on-year revenue growth to 45.8 billion baht in the first quarter as the mobile business shows signs of recovery.
The company booked a quarterly net profit of 6.6 billion baht, a drop of 1.7% year-on-year, attributed to strong market competition and foreign exchange losses and tax breaks received in the final quarter of last year.
Regarding the mobile business, the company reported first-quarter revenue of 29.3 billion baht, up 1.2% quarterly, supported by strong growth in new subscriptions and government measures to stimulate consumer spending, according to AIS.
"The pandemic remains a key factor affecting growth. Despite the second wave of the pandemic at the end of 2020 and the first two months of 2021, AIS was able to maintain performance at a satisfactory level," said Somchai Lertsutiwong, chief executive of AIS.
In the first quarter, AIS postpaid customers continued to grow, adding 442,400 subscribers, while prepaid users increased by 887,900 subscribers.
AIS has the biggest mobile customer base in the country with 42.7 million users.
Regarding 5G users, AIS had 700,000 subscribers at the end of the first quarter. Mr Somchai said the company is targeting 1 million subscribers by year-end.
He said mobile competition remains intense, particularly with unlimited data packages luring customers in a weak spending environment during the pandemic.
Meanwhile, AIS's home internet business -- AIS Fibre -- received a boost from work-from-home and online education trends, Mr Somchai said.
AIS Fibre gained 95,000 users in the first quarter, up 7% quarterly, making its total subscriber count hit 1.43 million.
Its home internet business also booked revenue growth of 17% year-on-year to 1.9 billion baht in the first quarter.
"Signs of business recovery in the first quarter this year may not have much of a long-term impact because we are in a third wave of the pandemic, which may have a severe impact on business for the rest of the year," he said.
The company has earmarked 25-30 billion baht to leverage the potential of 5G for national economic recovery through cooperation with various industrial sectors, said Mr Somchai.