Earnings Report /
Thailand

True Corp PCL: Well below our estimate; shallower core loss expected in 4Q21

  • Heftier core loss than modeled

  • TRUE posted a 3Q21 net loss of Bt603m

  • The YoY shallower core loss was led by lower SG&A expenses

Prasit Sujiravorakul
Prasit Sujiravorakul

Equity Research Analyst

Bualuang Securities
17 November 2021

Our TRADING BUY stands based on the improved service revenue in 2022 on the domestic consumption recovery and full reopening in 2022.

Heftier core loss than modeled

TRUE posted a 3Q21 net loss of Bt603m, a reversal from a Bt104m net profit in 3Q20 and deeper in the red by 102% QoQ. Excluding extra items in 3Q21—Bt218m FX gain and Bt163m in other extra gains—and one big extra gain item in 3Q20—Bt1.5bn gain from the 2.8% sell-off of TRUE’s stake in DIF—it posted a Bt984m core loss, shallower by 14% YoY but deeper in the red by 240% QoQ. Net and core losses were deeper than our model by 58% and 146%, respectively, due to higher service costs and lower share of profit from DIF than estimated. Group’s service revenue was in line with our estimate. Gross profit and after-tax loss missed our model by 10% and 40%, respectively.