Earnings Report /
Thailand

Advanced Info Service PCL: Results in-line; positive sign of QoQ service revenue recovery in 1Q21

  • Consistent with our model

  • ADVANC posted a net profit of Bt6.64bn for 1Q21

  • The firm maintains its 2021 targets

Bualuang Securities
5 May 2021

Our BUY rating stands based on its service revenue and earnings recovery in 2H21 (despite the third wave of COVID-19 in 1H21), its being the 5G service leader in 2021 and a decent dividend yield.

Consistent with our model  

ADVANC posted a net profit of Bt6.64bn for 1Q21, down 2% YoY and 7% QoQ. Excluding extra items in 1Q21—Bt223m in net FX loss and Bt349m tax benefit from investment—core profit was Bt6.52bn, down 5% YoY but up 3% QoQ. Net and core profits were aligned with our model. Mobile revenue and service revenue (excl. IC) exceeded our model by 1.3% and 1%, respectively, which was a positive indicator in 1Q21. We also witnessed a positive sign of QoQ recovery of service revenue and a jump in net subscriber additions for both mobile and fixed broadband (FBB) units in 1Q21. Gross profit, EBITDA and after-tax profit were in line with our model.