Advanced Info Service Public Company Limited (SET: ADVANC) has announced its 1Q24 consolidated financial statement through the Stock Exchange of Thailand that was well above market estimations.
| Quarter | 1Q24 | 1Q23 |
| Net Profit (Loss) Million Baht |
8,451.05 | 6,756.93 |
| Earning Per Share (Baht) |
2.8400 | 2.2700 |
| % Change | 25.07 | |
ADVANC reported a net profit of Bt8,451mn, increasing 25% YoY, following an improved operating performance despite higher finance cost and FX loss. The increase was 18% higher than the market expectations for Bt7,187 million, according to the data from LSEG.
AIS reported core service revenue of Bt39,437mn, a solid increase of 18% YoY and 6.4% QoQ, driven by all businesses especially in mobile and FBB strategized on sustainable profitability focus, and boosted by full quarter revenue addition from TTTBB acquisition.
Mobile revenue reported Bt30,339mn, marking 3.7% YoY and 0.9% QoQ alongside the economic boost from government and the incoming tourists. The focus on high-quality acquisition, personalized value-added packages offered at the right time through upselling and cross-selling strategies, and positive impact from package restructuring to enhance more value to the customers resulted in a continuous growth in ARPU.
The focus on quality also extended to subsidy optimization, leading to an improved sales margin of almost 5% for 1Q24. As of 1Q24, 5G subscribers reached close to 9.9 million.
Fixed broadband revenue reached Bt7,118mn, demonstrated a robust growth of 163% YoY and 41% QoQ. This was attributed to the full quarter consolidation of TTTBB’s revenue, as well as organic expansion of new subscribers with value packages leveraging on the expanded network footprint, superior service quality, innovative products, and comprehensive content-bundling packages.
AIS reported 1Q24 EBITDA of Bt27,769 mn, delivering a growth of 23% YoY, 16% QoQ from profitable revenue expansion with efficient cost management. The TTTBB acquisition has also been accretive to AIS’ EBITDA since day one. Coupled with improved sales margin, the EBITDA margin increased from 47% in 4Q23 to 52% in 1Q24.
Based on 16 brokerage firms compiled by LSEG, 14 gave BUY recommendations, while two recommended Hold and no Sell. The consensus for target price is THB255.06, which is 29% upside from the current price. Noted that the target price is prior to the announcement of 1Q24 earnings.
