10 May 2022: In the first quarter of 2022, business operations still have faced challenges from the economic situation, particularly inflation which has resulted from both domestic and overseas factors, impacting consumer spending power. COVID-19, especially Omicron variants, is still a huge concern and has impacted people’s lives since the beginning of the year. As a result, AIS operating results in the first quarter showed total revenues of 45,279 MB, a reduction of 1.3% from last year. Net profit was 6,311 MB, declining 5.0% from the previous year. Meanwhile, Cognitive Telco or Smart Organization Transformation Plan has been ongoing, with investment budgets of 30-35 billion Baht to upscale the potential of the 5G network bringing in digital experiences to Thai people as Metaverse innovation which is generating opportunities to many industries as well as supporting the growth of the mobile-phone business, high-speed Internet broadband business, enterprise, and digital services business.
Somchai Lertsutiwong, CEO of Advanced Info Services Plc. (AIS) commented, “It cannot be denied that in the first quarter of this year, the country had to face challenges from all directions, both inside and outside the country. These have resulted in a slight decrease in AIS total revenues. However, we continue to invest to extend the 5G network for the greatest benefit of all sectors. We believe that digital technology is the basic infrastructure to contribute to sustainable and long-term national growth. Today, AIS has transformed into a digital life service provider from a mobile service provider. Additionally, we are showing the potential of AIS 5G to transform Thai people’s experiences again with Metaverse innovations which have connected the real world and the virtual world for the first time. Our services do not only create digital experiences for the Thai people but also generate new opportunities for growth in various industries, which will promote the growth of the Nation’s digital economy.”
As for operating results in quarter 1/2022, total revenue was at 45,279 MB, decreasing 1.3% YoY, while net profit was 6,311 MB, decreasing 5.0% YoY from an increase in investment in additional spectrum license last year. Nevertheless, AIS remains the strongest financial status in the industry and will continue to develop innovations with expanding coverage for the 5G network, as well as home broadband Internet.
On the cost side, AIS is still investing to expand its 5G/4G networks to enhance its leadership, which increased the costs of service by 1.9% from last year. Selling General & Administration expenses were reduced 0.8% from last year, led to Earnings before interest, taxes, depreciation, and amortization (EBITDA) declining 0.8% YoY to 22,404 MB. The operating results by business segment are as follows:
- Mobile Phone Business: AIS reported a decrease in revenue, falling 1.7% from last year as the economy has still recovered, combined with continued severe competition, particularly in terms of price competition. However, the total subscriber base continued to grow strongly to 44.6 million subscribers, increasing by over 506,500 numbers during this quarter. Currently, AIS has rolled a 5G network out to all 77 provinces, covering 78% of the population. AIS gained over 2.8 million users, up from 2.2 million at the end of 2021.
- Home broadband business: this business has remained a business unit that can sustain a growth outpacing the market, growing 27% in revenue from the previous year or adding approximately 92,000 subscribers. The total subscriber base now reached 1.86 million with a target of 2.2 million within this year. AIS Fibre continues to emphasize service quality with the guarantee of providing customer service within 24 hours and leveling up the industry with 2 Gbps packages for the first time in Thailand. Recently, AIS has launched Intelligent Wi-Fi services, using AI systems to allocate Internet Data Traffic for home users. This is upgrading industry standards in-home broadband to the next level with less focus on price competition.
- Enterprise business: AIS Enterprise revenue had a strong growth of 31% YoY to expand this business to align with the plan of Cognitive Telco transformation through main 5 strategies such as deploying 5G networks to increase the efficiency of businesses, building Intelligent Networks, creating digital infrastructure and platforms, being a user of data, and forming professional teams by collaborating with diverse partners to create the most perfect Digital Business Ecosystem in the country.
Somchai added, “Despite the challenges of the current economic situation, politics, and intense competition, we will continue to invest budgets over 30,000 – 35,000 MB on expanding the 5G network rollout with a population coverage target of 85% by the end of the year. In addition, we will continue doing research and development for finding digital innovation to level up customer experience and make Thais experience world-class technology. And this will bring us to be the Cognitive Telco Organization within three years, as we believe digital tech is the basis of growth of every sector, and we consider this is AIS’ core mission as a market leader.”