True’s profits sink as it gets ready to merge with Dtac
Telecom giant True Corp announced losses of 18.28 billion baht in 2022, as it prepares to complete its merger with Total Access Communications (Dtac) in the first quarter of this year.
In October, the National Broadcasting and Telecommunications Commission voted 3:2 to “conditionally acknowledge” the merger. This decision was made after nine months of deliberation.
On Tuesday, True reported to the Stock Exchange of Thailand (SET) that it recorded a loss of 18.28 billion baht in 2022, compared to a loss of 1.42 billion baht the previous year.
However, True believes the merger will change its future outlook.
“It will enable True to cope with challenges in both domestic and global markets,” a statement from the company said. “It will also help the company offer products and services that meet consumers’ needs.”
True generated 135.07 billion baht in revenue last year, 103.84 billion of which came from its services.
Revenue earned from services in 2022, however, dropped 2.3% compared to 106.25 billion baht earned in 2021. True put this slump down to the economic slowdown, which has hurt consumers’ purchasing power and market competitiveness.
The company said its earnings before interest, tax, depreciation and amortisation (EBITDA) last year dropped to 52.80 billion baht.
Hence, to combat this slump, the company is taking measures to control costs as well as expenses related to the merger.
True also put its losses down to the drop in network fees, rising spectrum amortisation, foreign exchange losses and rising non-recurring expenses.
However, it said, the merger should help enhance operation efficiency, including honing employees’ skills, simplifying operations and utilising networks and assets effectively.
“Consumers will also experience better service,” it added.
Separately, SET has suspended all trade in True and Dtac shares until March 2, when the new, merged company should be listed.
Related stories:
Merging may be best bet for small parties in new two-ballot voting system: poll
Company created by merger of telecom giants to retain True Corporation name
University prof wants NBTC adviser to be investigated over True-Dtac merger
