Earnings Report /
Thailand

True Corp PCL: Below expectations; QoQ shallower core loss expected in 2Q22

  • Significantly deeper core loss than estimated

  • TRUE posted a 1Q22 net loss of Bt1.62bn

  • We model a Bt800m core loss for 2Q22, deeper by 177% YoY

Prasit Sujiravorakul
Prasit Sujiravorakul

Equity Research Analyst

Bualuang Securities
18 May 2022

Our TRADING BUY stands based on the improved service revenue and shallower core loss in 2H22. The amalgamation progress and the MergeCo formation expected in 2H22 will be the share price catalyst.

Significantly deeper core loss than estimated  

TRUE posted a 1Q22 net loss of Bt1.62bn, deeper in the red by 178% YoY and against a Bt54m 4Q21 net profit. Excluding extra items in 1Q22—Bt452m FX loss and Bt995m in other extra gains—it posted a huge Bt2.16bn core loss, deeper in the red by 254% YoY and 68% QoQ. Net and core losses were deeper than our estimates by 244% and 332%, respectively, thanks to lower group’s service revenue and higher service costs than modeled. Group’s service revenue, EBITDA and after-tax loss missed model by 3.7%, 9% and 113%, respectively.