DTAC 2Q profit plunges 65% on one-off effects, revenues slide in weak economy

23 Jul 2009

Digital Total Access Communications (DTAC), Thailand’s second largest mobile operator by users, has reported a 65% year-on-year drop in net profit to THB1.37 billion (USD40.4 million) in the three months to the end of June 2009, down from THB3.91 billion in the corresponding period of 2008. The decrease in net income was mainly attributed to a THB2.4 billion one-off payment last year from minor operator Digital Phone, part of larger rival Advanced Info Service (AIS), for using DTAC’s infrastructure. The net profit figure was down 7% quarter-on-quarter. Revenues in 2Q09 were THB16.0 billion, down 3% quarter-on-quarter as earnings from international roaming and international direct dial (IDD) calls declined sharply, which the company blamed on seasonality and the ongoing economic downturn, whilst EBITDA dropped by just 1% q-o-q, due, DTAC said, to stringent cost controls. CEO Tore Johnsen said: ‘Although total revenue declined modestly in the second quarter, we started to see some results from the cost efficiency programmes… We will continue to implement more programmes as the outlook for the overall economy remains bleak.’

Thailand, Digital Total Access Communication (DTAC),

Subscribe

Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate

Browse

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share