AIS expects to beat profit forecasts [Bangkok Post, Thailand]

(Bangkok Post (Thailand) Via Acquire Media NewsEdge) Nov. 17--Advanced Info Service expects better-than-expected profit margins this year due to effective cost-cutting and resilient sales in the third-quarter.

But the country's largest mobile operator has maintained its revenue growth target of between -3 percent and zero, which it cut from an earlier goal of 3 percent to 4 percent due to the weak economy and the highly saturated mobile market.

Pornrat Janejarassakul, vice-president for marketing and planning of AIS, said cost-control measures and the third-quarter results should bring higher profit margins this year. But he declined to give specific figures.

AIS reported third-quarter net profit of 4.18 billion baht, down 7.7 percent year-on-year, on revenue of 24.9 billion a 9 percent year-on-year decline.

Nine-month consolidated net profit fell by 19 percent to 12.95 billion baht.

AIS had 28.3 million subscribers as of Sept 30. Some 380,000 net new subscribers joined in the third quarter, down from 809,000 a year earlier but up from 320,000 in the previous quarter.

The firm is satisfied with its results in the third quarter, which is considered the industry's low season, he said.

AIS expects an improvement in earnings in the fourth quarter, driven by a recovery in the economy, he said.

For its 3G investment project, AIS applied for 10 billion baht in bank loans last year, amid scarce access to credit during the downturn.

"We had prepared by securing loans in advance under a conservative financial plan as we want to ensure our financial readiness," said Mr Pornrat.

Although AIS has yet to shoulder any loan interest, the company already faces a loan commitment fee from banks for keeping its credit line open, he said.

If the 3G auction is delayed for a year, the company will inevitably be charged a commitment fee for one year to continue making available unused loan facilities, he said.

AIS must also pay interest on a 7.5-billion-baht bond with annual interest of 4 percent for the first two-and-a-half years. Part of the bond is reserved for spending on a 3G network.

AIS now plans to invest a total of 50 billion baht in its existing 2G and intended 3G networks over the next three years -- a sharp drop from its previous estimate of 75 billion baht.

Shares of ADVANC closed on the SET yesterday at 85.5 baht, up 50 satang, in trade worth 467.2 million baht.

To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.

Copyright (c) 2009, Bangkok Post, Thailand Distributed by McClatchy-Tribune Information Services.

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AIS expects to beat profit forecasts [Bangkok Post, Thailand]

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