True Corporation Pcl

Welcome to True Corporation's earnings disclosure for the fourth quarter and full year of 2025. My name is Noreen. I'm the head of investor relations. With us today are our group CEO, Khunsik Bey, and our co-CFO, Khun Nakul. I would also like to welcome all the analysts who have joined us in the room today and to those of you who are joining us online. Our presentation today is going to be a bit different. We will have the first segment, which will focus on the results of the fourth quarter and the full year. And we will have the second segment, which will focus on the strategy and the mid to long-term guidance that we have provided. All our presentations are available for download on our website. We will take Q&A at the end of the presentation. For those of you who are online, please raise your hand or drop your questions in the comment box. We will do a mix of questions from the room and questions online. With that, I now welcome Konsek Wei to start our presentation.

Sorry. Thanks, Noreen, and good morning to all of you, our Asian colleagues, and good afternoon or whatever to the rest of the world. And good to see also several of the analysts being present here in the room. Let me take one look back before we go forward. And I'm taking a look back on 2025. And some key highlights from that year. First, 2025 was the year where we became profitable. We reported a net profit after tax for the first time in Q1 last year and continued to be a profitable company ever since. And more importantly, we declare our first dividend since the amalgamation in Q3 2025, reinforcing our commitment to disciplined capital allocation and shareholder return. Secondly, we also last year achieved a significant milestone on our network. We completed our one network integration successfully and actually ahead of plan. And with the acquisition of the 2.3 megahertz and the 1500 megahertz, we now have the biggest spectrum portfolio in the market, which puts us in a very good position to deliver best network experience going forward. And thirdly, customers remain at the core of everything we do. And we had some challenges during the year, being the earthquake, being flood, being border situation, and also being the network outage that we had. But throughout that, we kept the relationship with our customers. We also unified ex-DITA customers and ex-TRUE customers into a one digital first platform, delivering a seamless and consistent experience through the new TRUE app, where our customers then could get the first digital platform experience. Finally, We also started to see in the fourth quarter signs of growth momentum returning. I said when we had our third quarter presentation that we are bottoming out and returning back to growth. And that was exactly what happened in the fourth quarter. Mobile service revenue increased quarter on quarter. EBITDA continued to expand significantly. This affects a shift towards a healthier, more sustainable growth with customers firmly at the core. These milestones represent what I call a shift from integration that we have done the last three years to a disciplined execution and a sustainable performance going forward. And I'm going to talk more about that. But first, let me ask Nakul to go through some of the financials from the quarter. Please, Nakul.

Thank you so much. Good morning. Good afternoon, everyone. Let me walk you through the financial highlights of Q4 25 and full year of 25. First, as far as the service revenue is concerned, on a normalized basis, excluding the impact of the decline in domestic roaming, we are delivering a negative 0.2% year on year for Q4 and a flat on a quarter on quarter basis. For the full year, we are negative 0.2%, a shade lower than the guidance that we are given to the capital markets. As far as the EBITDA is concerned, a 10.3% growth on an year-on-year basis and a 3.2% on a Q1Q, with the full year being 7% growth. The net profit after tax, 4 billion of reported profits, 2.5x of what you saw in the previous quarter. And at the same time, normalized profit was 6.1 billion, with the full year reported profit being 9.2. And as Kunsigwe said, fourth consecutive quarter of profit for the company. The leverage continues to decline. It's a negative 0.2x on an year-on-year and also on a quarter-on-quarter basis. And even here, we meet or slightly exceed the guidance that we had given to the capital markets. We do also announce final dividend for the year at about 4.1 billion, which is 12 satang. With this, the F525 payout is 56% of our normalized profits. Then, if I go into the financial numbers in a little bit more detail, as far as the service revenue for Q4 is concerned, even though it's declined 1% on a year-on-year basis, that's primarily on account of domestic roaming and pay TV. But on a normalized basis, it remained flat on a Q1Q and declined on a negative 0.2% on a deal on it basis. The full year service revenue declined due to lower contribution from mobile as well as the pay TV segments. And I'll explain that in the second graph that you see in the middle. If you look at the waterfall from Q424 to Q425 and also for the full year 24 to full year 25, the two businesses that have declined is basically mobile and pay TV. where there is growth registered in online. The decline in the mobile business is primarily on account of domestic roaming, while the underlying core mobile business has grown. As far as the total revenue is concerned, first, if you can see the product sales for Q4-25 has increased approximately 37% due to launch of the iPhone. And this is where you see the numbers clearly indicating that increase. 4.2 billion has gone up to 5.8%. And then also, as far as the full year is concerned, the decline of 5% that you see is primarily on account of the reduction in the network rental revenue, which is as expected. You know, expiration of the spectrum rental arrangement that we had with NT, and that's the reason why there is a decline. Other than that, it's stable. Then if I move on to the different businesses, first the mobile business. Let me first walk you through the middle section, which is the subscriber growth. As Kunsikbe mentioned, we had kind of promised in Q3 that we're going to be back to growth in this business. And as a consequence, we are pleased to report 580,000 net ads positive in this quarter, 100,000 coming from postpaid and about 480,000 coming from prepaid. The growth in postpaid is basically on account of B2B. With the growth in the subscribers and also an improvement in the ARPU, as you can see on the extreme right, the ARPU in the prepaid space has improved 2.6% Q1Q. Full year is approximately 10%. Also, as far as the postpaid business is concerned, it's a slight improvement, 0.4% quarter on quarter. That's primarily because of the seasonal roaming revenues. And as a consequence, the Q1Q and year-on-year blended ARPU has shown a good increase, reaching at 225 baht, which is a 4.5% increase year-on-year. The revenue development is a function of the subscriber and ARPU. And as a consequence, you can see Q1Q, the mobile business has grown 1.2%. And the growth normalized for the roaming is about 1.4. And that's where we are saying that we are back to growth as far as this business is concerned. Then let me move on to online. We registered a 1.5% growth year-on-year in online revenues, which is basically driven by the growth in subscribers. If you see the number of subscribers, we report 32,000 net ads positive in this quarter, but the subscriber number will be a little bit of surprise to you, and let me address this question up front. What we've done is we've actually revised how we report the subscribers on the broadband space, where we've done two adjustments. Number one, we've excluded B2B broadband subscribers here because that was doing the ARPU very differently because B2B ARPU is much higher because of the corporate solutions. And the second, we had historically double counted certain subscribers who were using a fixed line phone and also using a broadband connection. And over a period of time, these fixed line subscribers Subscribers don't really pay for the fixed line phone anymore. So that's why we thought it was more appropriate to show a normalized view of the subscribers. And hence you see a 3.3 million subs, which is increasing 32,000 on a quarter-on-quarter basis. ARPU has more or less remained flat. And as a consequence, you see on the left-hand side, the subscription revenue has marginally improved 0.8% Q&Q. The full revenue, including B2B, has declined 1.9%, but that's, as we had mentioned earlier, it's because of the one-time revenues on certain corporate solutions that we had in Q3. Full year is a growth of 2.2%. Then I move on to pay TV. Pay TV, as you know, Q3 was a quarter where we had reported some exceptional revenues, which was basically on account of music and entertainment. These are seasonal in nature and come once in a while at different times of the year. So even though on a reported basis you see a 14.3% decline year on year and a 24.4% on a quarter on quarter, the majority of the decline is because of the lower seasonal concerts in Q4 as compared to Q3. As far as the subscriber is concerned, the trend is continuing from what you had seen in the past. It's roughly about a 4% decline and the ARPU is more or less stable from Q3 and Q4. The other reason for the big reduction on our subscription revenues is, you are all aware, it's because of EPL not being in our portfolio anymore. And let me once again reiterate, losing EPL is net positive for us as a business, even though what we are trying to do is the net savings from EPL is being re-channelized into other content that we want to do to retain our customers. Then let me move on to the OPEX picture. There is a 28.8% year-on-year decline in OPEX, which is benefited by acquisition of Spectrum and also on the synergies. But first, the regulatory cost, as you are all aware, has increased 12.6% on an year-on-year basis, which is basically on account of the full-year effect on the rate, which is because of the expiry of Spectrum. Some more of this effect is going to come in 2026. As far as the network cost is concerned, it declined 27.5% year-on-year and also 9.2% Q-on-Q, which is benefited by two things. One is because of the acquisition of Spectrum, because certain costs are not booked now. They are actually booked below the line, even though they are much smaller. And the second is on account of the network modernization that has taken place, wherein we have reduced approximately 18,000 sites. The cost of sales have declined 4% year on year, but they have increased 33.7% in tandem with the increase in the sales of the handsets as well. So this should be looked at jointly. We have eliminated the spectrum rental cost. Of course, this is due to the expiry of the spectrum rental arrangement. And as you can see from the left-hand side of the chart, 1.9 billion cost in Q3-25 is not there anymore in Q4 of 25. The other cost of providing services has declined 8.4%, mainly driven by the net savings from EPL, but of course there are many items that are actually considered here. And as a consequence, the total OPEX has declined roughly 28.8% year-on-year and 3.4% on a quarter-on-quarter basis. Then let me move on to the profitability matrices. We report a 10.3% increase in the EBITDA on an year-on-year basis. This is driven by benefit from spectrum and also on the synergies. Q&Q, as mentioned earlier, is also a 3.2% growth. Full year, at a 7% growth, we are actually at the lower end of the guidance that we have communicated to the capital markets. But what may be a positive surprise to some of you, we report a very healthy BBA margin to service revenue, which currently stands at 67.5% for Q4. For the full year, it's 63.7%. Another thing that we are quite proud of is since amalgamation through cooperation has improved the ABDA by 8.4 billion baht which is 43% since amalgamation. Then as far as net profit is concerned the reported profit in Q4 is 4 billion baht which is increasing about 2.5x from 1.6 billion in Q3. As far as the normalized profit is concerned, we report a 6.1 billion. Basically, there are roughly about 2.1 billion of normalizations. And let me just walk you through those normalizations briefly because I'm sure you'll have some questions on that. First normalization that we've done, an annual impairment exercise has been carried out for the significant investments that we have in the company and for which we have recorded a 2.4 billion impairment. Second, the usual suspect that you see every quarter because we have been doing a network modernization. So the redundant assets that are not to be used pursuing the network modernization have been written off. That's about 1.2 billion. Then at the same time, we've recorded an annual impairment of half a billion on account of goodwill for the TV business. Number fourth, we have recorded a gain, which is a deferred tax asset that has been recorded on the losses of the company of about 1.5 billion and also unrealized loss on forward contracts, totaling about 1.8. And this has been recorded as a gain in this quarter. The reason why the deferred tax asset has been recorded is because now we are reporting a full year of profit. So that's why it is an opportune time for us to record the DTA. Last but not the least, we also have a gain of half a billion from our investment in associates, which is basically the revaluation of assets at DIF and annual exercise, as you already know. Another thing that we are quite proud of is the financial cost has actually decreased 4% on an year-on-year basis, and also the DNA has slightly increased 1.7% year-on-year due to acquisition of the new spectrum. As far as the capex is concerned, we report roughly 11.5 billion capex in Q4 with a full year being about 31.2 billion at capex to sales of about 17%, a shade higher than what we had guided to the capital markets. The reason why the CAPEX is slightly higher is because we have accelerated investment into the broadband network, an area that we had told you many a times in the past that we have been under-investing in that area, so we want to resurrect that. So that's the reason for the 1 billion increase as compared to what we had mentioned earlier. I will tell you the long-term projections on CAPEX to sales, you know, at the end of the presentation. Then on the leverage, from a 4.2x Q3 2025 of leverage, we are down to 4x. Actually, we had mentioned that we are going to be less than 4.1. So we are actually less than 4.1 at about 4x on the leverage. The good story that you continue to see is the effective interest rate on our borrowings. From 4.1%, now we are down to 3.8%. The net debt has decreased Q and Q basically on account of the disciplined cash flow management that you've seen over the last 12, 13 quarters and also reduced gross borrowings. The lease liabilities have actually increased year on year basically on account of the transfer of assets to DIF and accounting adjustment that we've been explaining to you since the last couple of quarters. We've also issued debentures of about 16 billion at 2.88% weighted average rate, which continues to reduce on every round of borrowing that we do. And at the same time, the tenor of the borrowing also increases. So this actually really shows our effective debt management. We have refinanced 126 billion during the year 24, 113 billion in 25, and what we need to refinance in 26 is actually only 66 billion. So, this shows that now it's, you know, getting more and more easier for us to manage our debt portfolio. Then, just to give you a perspective of 24 versus 25. On the left, you have the total revenues, but I also want to indicate that even though there is a 5% reduction in total revenues, the reduction is mainly on account of the spectrum rental going away pursuant to the spectrum arrangement that has expired. It is net positive to the EBITDA as well as to the net income, as you are already aware. The service revenue is a negative 0.2% year-on-year, normalized for the effect of the anti-roaming. The total OPEX, as you have seen, is reducing about 16% on a year-on-year basis from 24 to 25. And as a consequence, the EBITDA has improved 7%. The net profit after tax is about 9.4 billion for the full year, which is increasing 20.2 billion since 24. Then, just to give you a perspective of what we have guided to the capital markets and what we have achieved. We guided a flat to 1% growth in service revenues. We are a shade lower to that at a negative 0.2%, as I have just explained. Even with the flat to 1% growth in the revenues, we had guided a 7% to 8% growth in EBITDA. I'm happy to announce that we meet that guidance at about 7% growth. CapEx, we had indicated at about 30 billion. We end the year at about 31 billion. And last but not the least, we had said that we are going to be profitable on a reported basis for the year. And we are profitable since Q1 of 2025. I will end this section of the presentation by talking about the dividend for Q4. At about 4.1 billion baht, this is about 12 satang as final dividend. The record date is going to be 11th of May with the payout being on 26th of May. Of course, subject to the approval of the shareholders. The total dividend for the year is about 31 satang, which is at 116% payout ratio on the reported profits. And as we have explained to you, on the reported profits, it is always going to be higher because of a lot of one-offs that we have in the last one year. So therefore, on the normalized profit, the payout ratio is about 56%. The total dividend is roughly 10.7 billion for the full year. With this, I pass it on to Kunsigbe to walk you through the big moves for the next three years.