Learn about AIS’s profits in the third quarter of 2023, growing by a whopping 35%, with expectations for the last quarter of the current year!!
Thailand mobile phone share number one“Automated rescue system” Advanced Info Service Public Company Limited, or ADVANC, announced operating results for the third quarter of 2023, showing strong growth. With a net profit of 8,146 million baht, an increase of 35% compared to the previous year and an increase of 14% compared to the previous quarter.
Although total revenue decreased by 0.4% from the previous year to 46,069 million baht due to lower equipment sales. But the company can make profits more efficiently. This is due to the depreciation of 3G equipment that has reached its full value. and recognition of special items from the sale of an investment in Rabbit Pay amounting to 434 million baht
When looking at ADVANC’s operating results separated by business, it turns out that in the third quarter of 2023, each business unit can be summarized as follows.
– Mobile phone business Income reached 29,311 million baht, up 0.7% from the previous year, but compared to the previous quarter, it still contracted by 0.6% due to weak economic activity.
– The high-speed internet business generated revenue of 3,021 million baht, an increase of 19% from the previous year in line with service expansion in other provinces. AIS Fiber’s content sales packages have a total customer base of over 2.38 million customers.
– Corporate customer service business income reached 1,520 million baht, up 20% from the previous year due to better recovery of this group of customers. After the political situation becomes clearer, large project deals could be closed in this quarter.
As for future business trends, ADVANC aims to grow service income this year by 3-5%, with an investment budget of 27,000-30,000 million baht, even amid risks and uncertainties related to the global economy and domestic political risks. However, Thailand’s economic recovery is supported by growth in the tourism sector. Which helps support high private consumption.
Analyst’s point of view Innovation Securities ADVANC disclosed its third-quarter 2023 operating results as expected by analysis and consensus, so it maintained its 2023 normalized earnings estimate at 27.4 billion baht, an increase of 5.1% from the previous year. Results are still in the recovery period. As for the profit trend in the fourth quarter of 2023, it is expected that regular profits will decrease from the third quarter due to the high season of marketing expenses.
side Asia Plus Securities ADVANC is clearly still an upside stock in the short to medium term (over the next year or two) with factors not yet included in the estimate as follows.
1. Project to use the 700 MHz spectrum for the National Telecommunications Company Limited (NT) Which will help enhance service delivery capacity and there will be a new revenue stream coming from the network rental fees received from NT, which is expected to start from Q4 2023 onwards and is expected to add value to ADVANC of about 1-2 baht per share.
2. The purchase deal of Triple T Broadband Public Company Limited (TTTTB) and its subsidiaries. Including the purchase of the Jasmine Broadband Internet Infrastructure Fund (JASIF) from the major shareholder, Jasmine International Public Limited (JAS), which is currently seeking permission from the Business Committee. National Television and Telecommunications Commission (NBTC). The company still believes that the NBTC process will be completed by 2023. It is expected to add value to ADVANC of about 2-3 baht per share.
3. New businesses such as data centers, which is a collaboration between 3 parties: ADVANC, SINGTEL, and GULF With an initial investment budget of approximately $200 million, it is currently under construction. Service will begin in early 2025.
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