SET-listed Advanced Info Service Public Company Limited (SET: ADVANC), Thailand’s biggest mobile operator by subscribers, posted 4.9% year-on-year revenue growth to 181,333 million baht with 26,922 million baht in net profit in 2021 despite the pandemic that continually challenges the telco industry. The strong result was supported by dedication of more than 12,000 staff to enhance ADVANC services, network quality to deliver digital experience for Thais. This includes ADVANC digital infrastructure that enables 5G capability to serve manufacturing and industrial sector who are a core engine driving the economy. In 2022, ADVANC also plans to allocate more than 30 to 35 billion baht of investment to uplift network quality and capture growth opportunity.
Somchai Lertsutiwong, chief executive of ADVANC, said that the market situation in 2021 was challenging with a number of limitations and challenges. However, ADVANC has a strong mission to leverage our network strength to deliver a superior customer experience and bring new technologies to enhance operations of the business segments in manufacturing, and industrial sectors. We continued to develop a comprehensive digital ecosystem during last year by collaborating with leading international and local partnerships. These supported our company to deliver solid performance in 2021, together with the commitment of our employees who drive the company as a market leader in all dimensions, including quality and superior service.
ADVANC posted a 2021 revenue of 181,333 million baht growing 4.9% year-on-year and 26,922 million baht of net profit, declining 1.9% compared to the same period of last year. On the cost side, ADVANC has continued to invest in its 5G/4G network to strengthen leadership position and acquired the additional of 700MHz and 26GHz licenses have caused our cost of service increasing by 4.5% year-on-year. However, effective cost management in selling, marketing and admin expenses (-11% year-on-year) has led in Earnings before interest, taxes, depreciation, and amortization (EBITDA) of 91,408 million baht improving 2.2% year-on-year. ADVANC has the strongest financial situation in the telco industry and is scheduled to pay an interim dividend at 4.24 per share on 19 April 2022. The results by business segment are as follows.
Mobile-phone business: ADVANC reported 117,244 million baht in revenue, a slight drop of 0.7%, due to the economic condition and weak consumer spending during the new wave of pandemic throughout the previous year while price competition remained intense. Being adaptive to deliver new digital experiences to customers, ADVANC gained 2.68 million users in 2021 and reached total subscribers base of 44.1 million with the growth of 5G subscribers of 2.2 million.
Home broadband business: AIS Fibre delivered a robust growth, increasing 21% in revenue year-on-year, continued outpacing industry. ADVANC has gained 435,100 net additions during the year, surpassed 1.77 million in total subscriber base which exceeds the target of 1.6 million customers. We continued to focus on quality services such as 24-hour service guarantee and being the first mover to offer 2Gbps internet to home users.
Enterprise business: ADVANC Enterprise revenue strongly increased by 18% compared to previous year. In 2021, ADVANC has made new strategic partnership with Microsoft in Cloud service to enhance our strength in the Enterprise service capabilities. We also launched new services with partners collaboration including 5G Solutions, to leverage industrial and manufacturing sectors such as partnership with OMRON to provide smart manufacturing solutions to meet Industry 4.0, and collaboration with Mitsubishi Electric and TTK in Total Industrial Solution using e-Factory. ADVANC continues to focus on driving digital technologies to support Thailand’s Digital Economy.
Digital service business: ADVANC enhances its digital service through partnership to deliver digital experience to address changing lifestyles of consumers. ADVANC partnered with Disney+ Hotstar to offer the exclusive package in Thai market, as well as BBC to bring in two premium channels from BBC World News and BBC Lifestyle, and several sports content such as Olympic Games and the latest season of Football Thai League competition.
“The development and transition of economic environment, social movement and customer behavior will shape the direction of ADVANC growth in every aspect. Now it’s time to transform as a “Cognitive Telco’ to enhance our network infrastructure and services to address future challenges and ensure delivery of distinctive digital experience for Thais and all business sectors.”
“AIS (ADVANC) has allocated the budget of 30-35 billion Baht to improve our network quality and to support growth of subscribers. The country’s digital infrastructure is an essential driver for Thailand to build competitiveness and attract investors, this is our aim as a market leader.” said Mr. Somchai.
