Earnings Report /
Thailand

Advanced Info Service PCL: Slightly below estimate; 2Q22 core profit set to rise YoY and QoQ

  • A bit short of our model

  • ADVANC posted a net profit of Bt6.31bn for 1Q22

  • The firm maintained its 2022 targets

Prasit Sujiravorakul
Prasit Sujiravorakul

Equity Research Analyst

Bualuang Securities
11 May 2022

It remains our sectoral pick, premised on its service revenue recovery starting 2Q22, its being 5G leader and a decent dividend yield of 4%.

A bit short of our model

ADVANC posted a net profit of Bt6.31bn for 1Q22, down 5% YoY and 8% QoQ. Excluding extra items in 1Q22—Bt42m in net FX loss and Bt62m tax benefit from investment—core profit was Bt6.29bn, down 6% YoY and 4% QoQ. Both net and core profits were 6% below our estimate due to lower service revenue than modeled. Core service revenue was 1% below our estimate led by mobile and non-mobile enterprise revenues which were 1.1% and 1.5% short of our forecasts. However, fixed broadband (FBB) revenue beat our model by 2.4% due to higher net FBB subscriber additions and its ARPU. Service costs and SG&A expenses were well controlled—1% and 1.6% below our estimates—from marketing, amortization expenses and network OPEX.