Earnings Report /
Thailand

Total Access Communication PCL: Below our estimates; 4Q21 service revenue/earnings recovery on track

  • Net and core profits fell short of our model

  • DTAC posted a Bt832m net profit for 3Q21

  • The YoY core profit tumble was due to the drop in service revenue

Bualuang Securities
26 October 2021

Our TRADING BUY stands based on a resumption of YoY and QoQ growth for service revenue and profit in 4Q21, a decent dividend yield of 4%, its cheapest valuation and the anticipated 3.5GHz auction in 2022.

Net and core profits fell short of our model

DTAC posted a Bt832m net profit for 3Q21, down 42% YoY and 46% QoQ. Excluding four extra items in 3Q21—Bt5m in FX loss, Bt0.5m in loss on the fair value hedge, Bt12m in reversal of loss from asset impairment and Bt136m in net-of-tax adjustment to regulatory cost item—core profit was Bt690m, down 53% YoY and 39% QoQ. Net and core profits were 11% and 26% below our forecasts, respectively, mainly due to higher-than-estimated OPEX (depreciation and amortization, network OPEX, general administrative, marketing and bad debt expenses). However, service revenue (excl. IC) beat our model by 1%.