True Corp PCL (TCPFF) Q1 2026 Earnings Call Highlights: Record Net Profit and Strategic Growth ...

This article first appeared on GuruFocus.

Mobile Revenue Growth: Increased by 0.2% quarter-on-quarter. Online Revenue Growth: Improved by 2.3% quarter-on-quarter and 3.4% year-on-year. Service Revenue Decline: Decreased by 0.6% year-on-year and 0.4% quarter-on-quarter. EBITDA Growth: Increased by 10.9% year-on-year and 0.7% quarter-on-quarter. Net Profit: Reported at THB6.6 billion, a 4x increase year-on-year and 1.6x quarter-on-quarter. Leverage Ratio: Reduced to 3.8x from 5.7x at amalgamation. Interim Dividend: THB0.14 per share, 73% payout ratio. CapEx: Reported at THB4.3 billion for Q1, with a CapEx to sales ratio of 9%. OpEx Reduction: Decreased by 29.8% year-on-year. Subscriber Growth: Added 600,000 mobile subscribers and 36,000 online subscribers. ARPU Decline: Postpaid ARPU declined by THB6 due to participation in the Ministry of Education program.

Warning! GuruFocus has detected 11 Warning Signs with TCPFF. Is TCPFF fairly valued? Test your thesis with our free DCF calculator.

Release Date: May 08, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

True Corp PCL (TCPFF) reported positive subscriber growth in both mobile and online segments, with over 600,000 new mobile subscribers and 36,000 online net adds. The company declared an interim dividend of THB0.14 per share for Q1, with a 73% payout ratio, and plans to pay quarterly dividends going forward. True Corp PCL (TCPFF) achieved a record high net promoter score, indicating improved customer satisfaction and reduced churn by 42% year over year. The company reported a 10.9% year-on-year increase in EBITDA, driven by spectrum acquisition benefits and synergies. True Corp PCL (TCPFF) is actively modernizing its network, resulting in a 36% year-over-year improvement in TrueOnline minutes lost per customer.

Negative Points

Service revenues declined by 0.6% year-on-year and 0.4% quarter-on-quarter, primarily due to lower network equipment rental revenues. The company faces macroeconomic challenges, including geopolitical tensions and a slowdown in tourism, which could impact future performance. True Corp PCL (TCPFF) experienced a decline in pay TV revenues, attributed to the absence of EPL content and an organic decline in subscriptions. The company's leverage remains relatively high at 3.8x, although it has decreased from 5.7x at amalgamation. Fixed broadband ARPU remained flat quarter-on-quarter and lower year-on-year, indicating challenges in increasing revenue per user in this segment.

Q & A Highlights

Q: Can you recap the guidance and discuss the impact of the Middle East conflict on demand in March and April? A: We have not changed our guidance and are pursuing the same targets as previously announced. The macroeconomic effects, particularly the impact on tourism, remain uncertain. However, we are confident in our operational control over costs and revenue generation. Despite fewer tourists, we have maintained our market share in the tourist segment and have not observed any significant down selling in the mass market. Our business remains resilient amid macroeconomic challenges. - Sigve Brekke, CEO

Story Continues

Q: What is your strategy to regain market share in mobile and broadband revenue? A: We are not looking to trigger a price war. Our focus is on enhancing customer relationships through quality connectivity and beyond connectivity services, such as IoT and content offerings. We aim to grow our existing customer base rather than aggressively reclaim lost market share. Our strategy is to take a fair share of market growth, and we are seeing positive developments in net additions and revenue. - Sigve Brekke, CEO

Q: How are you managing rising electricity costs and corporate tax charges? A: The government has announced a marginal increase in energy rates, which will have some impact on OpEx, but not significantly. Energy costs represent around 50% of total network costs. Regarding taxes, we have carry-forward losses and do not expect to be in a tax-paying position in 2026. The effective tax rate will be in the mid to low single digits for 2026, and we anticipate moving towards a normal tax rate in 2027. - Nakul Sehgal, CFO

Q: What is the basis for your dividend determination, and should we expect variability in the DPS? A: We maintain a dividend policy of paying out above 50%, with a guidance of around 70% for this year. The change is moving from semiannual to quarterly dividends, reflecting our steady operational state. This approach provides consistent pressure on management to deliver results each quarter. - Sigve Brekke, CEO

Q: How is True dealing with supplier negotiations and benchmarking after Telenor's exit? A: We are transitioning from Telenor's procurement company and will likely establish relationships with multiple procurement companies to ensure competitive pricing. We have secured key executives, including the CFO, and there will be no changes in our leadership team. - Sigve Brekke, CEO

Q: How do you view the impact of AIS's 5G Advanced network launch on your plans? A: We are implementing similar carrier aggregation techniques to enhance our 5G network, providing better speed and customer experience. Our approach is comparable to our competitors, focusing on network upgrades and spectrum utilization. - Sigve Brekke, CEO

Q: Why was the fixed broadband ARPU flat in Q1, and what is the outlook for leverage and credit rating upgrades? A: The flat ARPU is due to minor accounting effects. We expect ARPU to improve as we execute our strategy with new packages. Regarding leverage, we aim for a 3.5x net debt to EBITDA by year-end and 3x by 2028. We recently received a credit rating upgrade to a positive outlook. - Nakul Sehgal, CFO

Q: Can you update us on the development of the 1,500 spectrum and service revenue growth expectations? A: We are integrating the 1,500 spectrum into our network, which will enhance capacity and coverage. We expect revenue growth to pick up in the remaining quarters, despite macroeconomic uncertainties. - Sigve Brekke, CEO

Q: What is the progress on the employee stock option program? A: The board has approved a mix of ESOP and EJIP programs, incentivizing management to align with shareholder interests. The CEO and senior management will receive company allocations with personal contributions. - Sigve Brekke, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

View Comments