GuruFocus -
- Broadband Subscriber Base: Close to 5 million subscribers.
- Cloud Revenue Growth: Boosted by large cloud projects in the quarter.
- Green Funding Initiatives: Launched Green Bonds and Green Loans for sustainability projects.
- 9-Month Performance: Exceeded guidance due to increased economic stability and tourism rise.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Advanced Info Service PCL (AVIFY) reported healthy growth in its mobile business, driven by stable competition and increased data consumption.
- The company maintained growth in its broadband segment, nearing a subscriber base of 5 million, with a focus on upselling higher-value packages.
- Enterprise non-mobile services benefited from increased demand for EDS and cloud services, with significant cloud revenue growth from large projects.
- The company launched green funding initiatives, including Green Bonds and Green Loans, to support sustainability-focused projects like expanding 5G networks in rural areas.
- Advanced Info Service PCL (AVIFY) exceeded its 9-month performance guidance, benefiting from increased economic stability and a steady rise in tourism.
- The company faces challenges from a lower GDP forecast due to weaker consumer sentiment, slower private investment, and recent flooding impacts.
- Consumer sentiment for the fourth quarter remains uncertain, with GDP forecasts revised down despite expected government stimulus.
- There is a potential for increased CapEx in the future, as the company strategizes its investments for next year.
- The company experienced a sequential decline in blended ARPU, attributed to seasonality and optimization of device subsidies.
- Advanced Info Service PCL (AVIFY) is closely monitoring the impact of recent floods, which heavily affected customers in Thailand's northern and northeastern provinces.
A: Revenue growth continues with minimal impact from flooding. We see benefits from price repair flowing through this quarter and into the next, with stable growth expected.
Q: What are your plans regarding CapEx for next year, considering the 5G network build-out?
A: There are some delays in CapEx investment this year, but we plan to maintain our guidance. Next year's strategy is not finalized, but if business remains the same, CapEx might decrease.
Q: How did the third quarter handset sales perform, and what is the outlook for the fourth quarter?
A: Handset sales showed strong performance with high gross margins. We expect continued growth in Q4, especially with high season sales and potential government stimulus packages.
Q: Can you explain the robust net subscriber additions for mobile and broadband services this quarter?
A: The improvement is mainly due to reduced churn rather than increased gross additions. For broadband, new subscribers come from both new households and competitors, with a stable churn rate.
Q: What is the status of the spectrum auction, and how does it affect AIS's strategy?
A: AIS will consider participating in every frequency auction, including 2.1 and 2.3 GHz. The decision will depend on conditions, timing, and pricing. Future auctions for 3.5 GHz and other spectrums are anticipated but not immediate.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.