TRUE REPORTS CONTINUED SUBSCRIBER GROWTH IN Q108 – CONVERGENCE STRATEGY DELIVERS

Telecommunication Press Releases Friday May 16, 2008 05:00
• Convergence strategy milestone: over 1.5 mn using multiple True products
• Group service revenue higher Y-on-Y; growth spread among all businesses
• Mobile market growing; TrueMove nearing 12.5 mn subscribers
• TrueOnline turnaround continues; Broadband subscriber growth accelerates
• TrueVisions passes 1 million subscribers; eyes H208 advertising opportunities
• Balance sheet improves further
• Shareholders approve BITCO/TrueMove share purchase

True Corporation PLC (SET: TRUE) has recorded revenue and subscriber growth across all its major businesses for the 12 months to March 31, with the Group’s convergence strategy delivering higher subscriber numbers and improving customer retention.

The Group remained on track for full-year breakeven on an ongoing basis, after posting a net income from ongoing operations of Bt 232 mn.
True President and CEO Suphachai Chearavanont said the Group’s convergence strategy, unique to the Thai market, was continuing to attract and retain subscribers.

“True’s bundled promotions are proving more popular each quarter. More than 1.5 million subscribers now use more than one True product or service, 31% higher than nine months ago when we carried out the last survey. Subscribers to two products are 35% higher; to three products 17% higher; and to four products 56% higher.

“We expect further growth as we continue our focus on innovation, network quality and service excellence.”
Group service revenue, including IC, rose 12% Y-on-Y to Bt 15.6 bn although EBITDA was stable. Q-on-Q, EBITDA was 10% higher at Bt 5.3 bn with significantly lower operating costs.
Group net profit was Bt 3.4 billion compared with Bt 467 million a year earlier, due mainly to a foreign exchange gain. Free cash flow more than tripled to Bt 1.4 bn.

TrueMove service revenue rose 3% Y-on-Y and was stable Q-on-Q. Mobile subscribers neared 12.5 million, and although net adds were lower the proportion of higher-value postpaid subscribers continued to rise, reaching 6%.

Mr Suphachai said the decision to bring forward to May the launch of True’s popular reality TV show, Academy Fantasia 5 (which has a strong TrueMove bundling component), would help boost mobile performance in Q2.

TrueOnline business was a strong Q1 performer, continuing its turnaround. EBITDA growth was up 18% Q-on-Q, the second consecutive quarterly improvement. Y-on-Y EBITDA was 8% higher, while service revenue rose 7%.

Broadband and Business Data Services were the main contributors to TrueOnline’s growth, more than offsetting the continued declines in fixed line and WE PCT. Broadband added 25,000 subscribers to reach 574,000 and service revenue was 20% higher than a year ago.

TrueVisions service revenue was 9% higher Y-on-Y, lifted by the success of its mass market strategy, but was lower on a quarterly basis because of seasonal factors. Subscriber numbers passed one million with 77,000 added during the quarter. Net profit was Bt 542 million.

Mr Suphachai said the pay-TV business was looking forward to adding a new revenue stream from the second half of the year by taking advantage of advertising opportunities under the new Broadcasting Act.

Digital e-commerce provider TrueMoney passed three million subscribers, and expects further growth from bundled initiatives such as the recent Touch SIM RFID service, while website portal truelife.com now has 1.4 million users.

True CFO Noppadol Dej-Udom said the Group’s balance sheets continued to strengthen, with debt repayment of more than Bt 1 billion during Q1. Net debt to EBITDA ratio declined to 3.2 times.

The decision by True shareholders at last month’s AGM to approve the purchase of BITCO/TrueMove shares from CP Group, and to approve the proposed funding options, represented a vote of confidence in True’s business strategy and outlook.

Note: In this media release, “True”, “Company”, “Affiliates” and “Subsidiaries” refer to True Corporation PLC and/or its affiliates and/or its subsidiaries.
About True Corporation Plc

True Corporation Public Company Limited is Thailand's only fully-integrated communications service provider, and leader in solutions for convergence lifestyles. True provides consumers, small and medium enterprises, and corporations with a full range of voice, data and multimedia solutions customized to meet their needs. True is the largest wireline service provider in Bangkok, the largest broadband provider in the country and a major player in the wireless, cellular and Internet markets. Principal subsidiary companies in the True Group include True Visions, Thailand's dominant pay television operator, and True Move, a major mobile phone service provider. True gives consumers the freedom to live different lifestyles, by providing them with the power to communicate, access knowledge, information and entertainment, as well as carry out online activities whenever, wherever, and how they like under five product and service categories: TrueMove, TrueOnline, TrueVisions, TrueMoney, and TrueLife. For more information, please visit: http://www.truecorp.co.th

For more information please contact:
Corporate Communications & Marketing PR,
True Group                                                                                         PR Solution
Tel. 0-2656-8059 or                                                                         www.prsolution.co.th
Pimolpan Siriwongwan-ngam Tel: +66 (0) 2699 2772           Khun Prapas Jarasaram Tel. 0-81827-7354
Sisadhi Reuben Tel: +66 (0) 2699 2782                                   Khun Jitruthai Tadseriwiboon Tel. 0-81613-1865

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