31 January 2023 – Total Access Communication PLC., or dtac, reported ongoing growth momentum in subscriber acquisitions driven by improved network experience leading to better coverage. With ongoing efficiency measures and disciplined cost management, the company continued to deliver a solid EBITDA margin amidst increasing macroeconomic challenges.
Sharad Mehrotra, dtac’s Chief Executive Officer, said, “dtac delivered a resilient performance in 2022 in the face of external challenges. In an already slow post-pandemic economic recovery, we faced increasing macroeconomic pressure from rising inflation and aggressive competition. Despite the external hurdles, dtac remained focused on delivering on its strategic ambitions for 2022.
In our commitment to provide customers with a reliable network and improved experience, we continued to deploy low-band, adding over 6,300 new sites in the year, resulting in better indoor coverage, faster speed and improved connectivity. dtac’s Net Promoter Score (NPS) improved from 2021, while we registered lower network-related complaints. As a result of the better network experience, usage on both 4G and 5G continued to improve. dtac added 106,000 new subscribers in Q422, reaching a total of 21.2 million, an increase of 0.5% QoQ.”
Nakul Sehgal, dtac’s Chief Financial Officer, said, “As a customer-centric challenger, dtac continued to deliver value from both B2C and B2B businesses. Driven by growth in active digital users and higher engagement with its customers, beyond connectivity revenue grew 18% from last year. As the preferred tourist and migrant brand, dtac registered 5 consecutive quarters of strong growth in prepaid. With higher solution sales to SME and large enterprises from digitization and partnerships, B2B service revenue delivered 13% YoY growth.
Efficiency measures remain a key value driver and a contributing factor to sustainable growth. Along with measures to reduce operating expenses, we also undertook the ambition to identify cash savings below EBITDA. From 2019-2022, dtac has registered a compound annual growth rate of negative 8% in full year reported operating expenses, excluding amalgamation related costs in 2022, along with quantifiable cash savings.
EBITDA for Q422 improved QoQ and YoY driven by strategic focus on efficiency initiatives and disciplined cost management despite higher inflationary costs and negative one-offs related to the amalgamation. Net profit improved YoY mainly driven by improved EBITDA and positive one-off impact of approximately THB 450 million lower depreciation mainly from change in useful life of assets. Net profit for Q421 was negatively impacted from a one-time asset write-off of approximately THB 430 million. Capital expenditures for the quarter stood at THB 2,180 million. In anticipation of the completion of the proposed amalgamation in Q123, dtac management will not be providing guidance for FY23.”
Key financial indicators in 2022
- Service revenue excluding IC – THB 55,512 million, declining by 1.6% YoY
- EBITDA – THB 29,851 million, declining by 0.5% YoY
- EBITDA margin (normalized) – 45.2%
- Net profit – THB 3,119 million
