True Corporation Plc. has announced a significant financial turnaround, reporting a net profit after tax of THB 1.6 billion in the first quarter of 2025. This achievement, occurring within two years of the True-dtac amalgamation, underscores the company’s successful cost management strategies and the materialization of synergy benefits, positioning it firmly on its path to becoming a leading telecom-tech company.
True Corporation Plc. (TRUE) has unveiled a landmark achievement in its financial performance, posting a net profit after tax of THB 1.6 billion for the first quarter of 2025. This remarkable turnaround, achieved just two years after the strategic amalgamation of True and dtac, serves as a strong testament to the company’s robust operational capabilities and its enhanced financial fortitude.
The positive result is largely attributed to disciplined cost management, a steadfast focus on performance, and the increasingly evident benefits stemming from the synergies of the merger. This has led to a continuous improvement in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) since the amalgamation.
A Pivotal Moment Post-Amalgamation, Steering Towards Sustainable Growth
The reported profit signifies a crucial turning point for True Corporation, highlighting a solid operational trajectory and the capacity to deliver satisfactory returns to its shareholders. When excluding the impact of one-off items, the normalized net profit for the first quarter of 2025 stands at an impressive THB 4.3 billion. This figure further reinforces the company’s strong underlying business fundamentals and its intrinsic profitability.
A key driver of this outstanding performance has been the consistent reduction in operational expenses. This is a direct outcome of a rigorous focus on efficiency and financial discipline, coupled with the tangible benefits of the amalgamation synergies. These synergies are increasingly visible across various aspects, including network modernization, enhanced procurement efficiency, and a more agile organizational structure.
Mr. Sigve Brekke, Group Chief Executive Officer of True Corporation Plc., commented on this success: “Bringing together True and dtac has been an astonishing feat. We united two industry leaders with a sharp focus on performance, financial discipline, and synergies, we have modernized our networks, infused AI into customer touchpoint, and most importantly, built a unified team with shared goals that is driving faster execution and stronger collaboration. I am incredibly proud of the dedication and resilience our team has shown every step of the way. The results speak for themselves as we successfully turned the business around and achieved profitability in Q1/2025.”
Mr. Brekke’s statement reflects the management’s vision and commitment to propelling the organization forward, emphasizing the integration of technology to elevate the customer experience and the cultivation of a strong corporate culture – essential foundations for sustainable growth.
Deep Dive into Business Segment Performance: Positive Signals and Challenges
Analyzing the performance of individual business segments, service revenue (excluding interconnection revenue) in Q1 2025 saw an improvement of 0.1% year-on-year. This growth was primarily fueled by topline improvements in the mobile and online business segments. However, the PayTV segment continued to face headwinds, experiencing a decline in revenue.
Notably, service revenue in the first quarter was affected by seasonality and lower domestic roaming revenue. Normalizing for these factors, service revenue demonstrated an improvement of 0.3% both year-on-year and quarter-on-quarter. The company reported an overall total revenue growth of 0.2% year-on-year. The improvement in product sales compared to Q1 2024 was partially offset by lower network rental revenue, a consequence of migrating traffic from the 850 MHz spectrum, which is due for expiration in August 2025.
Regarding subscriber numbers, mobile subscribers stood at 48.8 million at the end of Q1 2025, a decrease of 638,000 or 1.3% from the previous quarter, and a 4.4% decline compared to the same period last year. This was attributed to a strategic focus on acquiring quality subscribers throughout 2024. Mobile postpaid subscribers saw a quarterly increase of 0.2%, reaching 15.3 million. Conversely, mobile prepaid subscribers declined by 2.0% quarter-on-quarter to 33.5 million, influenced by seasonal factors. The online subscriber base continued its positive trajectory, registering a 0.7% increase quarter-on-quarter to reach 3.8 million. Significantly, 5G subscribers surged to 14.2 million, indicating a consistently growing demand for 5G technology.
Efficient Cost Management: The Key to Success
A cornerstone of True Corporation’s ability to achieve this robust profit turnaround is its effective cost management. In Q1 2025, total operating expenses (excluding depreciation and amortization, or D&A) decreased by a significant 5.7% year-on-year. Specifically, network costs fell by 4.8% year-on-year, driven by savings from network modernization and improved procurement processes.
Furthermore, Selling, General, and Administrative (SG&A) expenses saw an impressive reduction of 16.9% year-on-year. This was primarily due to cost savings from organizational modernization, new commercial initiatives focused on efficiency and value, and improved collection efficiency. The integration of a performance management framework with a clear focus on sustainable profitability has enabled True Corporation to maintain tight control over its operating expenses.
The tangible outcome is an EBITDA improvement of THB 5.8 billion since the amalgamation, marking a continuous upward trend. In Q1 2025, EBITDA improved by 7.1% year-on-year and 0.2% quarter-on-quarter. This EBITDA growth is a direct result of synergy realization and stringent financial discipline. Consequently, the EBITDA to service revenue margin improved markedly by 4.0 percentage points year-on-year, reaching 61.2% for the first quarter of 2025.
Mr. Nakul Sehgal, Chief Financial Officer (Co) of True Corporation Plc., added, “True Corporation has reached a significant milestone during the first quarter of 2025, reporting profit for the first time since amalgamation. The Company delivered Net Profit After Tax of THB 1.6 billion, holding up our promises to our shareholders. Maintaining profitability momentum, EBITDA marginally improved during the quarter despite challenging topline development from seasonality.”
The Path Forward: Aspiring to be a Leading Telecom-Tech Company
The success in turning the business around and achieving profitability in the first quarter of 2025 is just the beginning of True Corporation’s journey towards an even more ambitious goal: evolving from a traditional telecom operator into a leading telecom-tech company that plays a pivotal role in driving progress across all sectors of Thai society.
Mr. Sigve Brekke elaborated on the company’s future direction: “Today, True Corporation is well-equipped, both operationally and financially, for the next stage of growth. Looking ahead, our ambition is to evolve from a telecom operator into a leading telecom-tech company that drives progress across every part of society. We are committed to scaling efficiently, leading with innovation, and delivering long-term value for all stakeholders. The progress we have made so far is a testament to the strength of our people and sets us up to move forward with an even greater purpose.”
This vision underscores True Corporation’s commitment to leveraging innovation and digital technologies to create solutions that meet the evolving needs of both consumers and businesses. The aim is to enhance capabilities and improve the quality of life for Thais, while simultaneously driving the nation’s digital economy towards robust and sustainable growth.
Capital expenditure (CAPEX) for the first quarter of 2025 amounted to THB 5.5 billion, with almost half of this allocated to integration costs related to ongoing network modernization. This investment will further strengthen the company’s digital infrastructure and support the growth of future services, particularly in 5G technology and AI-driven solutions. It is worth noting that the company recorded one-time costs of THB 2.9 billion in Q1 2025, primarily related to asset impairment from network modernization. Adjusting for these one-time effects and a tax gain of THB 160 million, the normalized net profit after tax was THB 4.3 billion, driven by EBITDA improvement and reductions in depreciation, amortization, and financial costs.
The industry will be keenly watching whether True Corporation can maintain this growth momentum and profitability amidst intense competition in the telecommunications sector and various economic challenges. However, with a solid foundation from the amalgamation, efficient cost management, and a clear vision to become a leading telecom-tech company, True Corporation is poised to remain a key player in shaping Thailand’s digital future.
Key Financial Indicators for Q1 2025 (Summary):
- Service revenue excluding IC: THB 41.3 billion (improving 0.1% YoY and declining 0.7% QoQ)
- EBITDA: THB 25.3 billion (increasing by 7.1% YoY and 0.2% QoQ)
- EBITDA margin (to service revenue): 61.2%
- Net Profit After Tax (NPAT): THB 1.6 billion
- Normalized Net Profit After Tax (adjusting for one-time effects): THB 4.3 billion
As Thailand’s leading telecom-tech company, True Corporation empowers people and businesses with connected solutions that advance society sustainably. True’s world-class voice and data services enable a lifestyle ecosystem of global entertainment, exclusive privileges, and seamless connectivity. Through its AI-augmented innovation, True Corporation contributes to a more productive, healthier, and safer world.
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