Advanced Info Service (AIS), Thailand’s largest mobile operator, is feeling the pinch of reduced revenue as the political stand-off worsens consumer spending.
Chief executive Wichian Mektrakarn said if the political impasse drags on into the third quarter, AIS might not
achieve its full-year revenue growth target of 6-8%.
The revenue projection was based on the company having 32 million third-generation (3G) subscribers.
AIS has 42.3 million subscribers overall, including 26 million for 3G.
The company achieved consolidated first-quarter revenue of 36.4 billion baht, down by 5.4% year-on-year and 1% quarter-on-quarter.
Average revenue per user was 225 baht, down from 263 baht in the same period last year and 234 baht in the fourth quarter.
Mr Wichian said all major mobile operators are facing declining revenue.
Consumers are limiting their spending while they monitor the present unfavourable political and economic conditions.
“Given that communication services are deemed a commodity, shrinking consumer spending on them could be a critical sign of a worsening macroeconomic situation,” he said.
However, Mr Wichian said AIS was ready to join the 4G spectrum auction this August in a bid to enhance its already-lucrative data revenue stream further.
AIS operates 2G service on the 900-megahertz spectrum under a concession from TOT Plc that will expire in September 2015.
The company’s 17,000 3G base stations cover 95% of the population.
CAT Telecom is also considering revising down its 2014 net profit target by one-third to 800 million baht.
That would still still represent a 60% increase over last year’s 500 million baht.
President Kittisak Sriprasert said CAT earlier expected full-year revenue of 45 billion baht from its operations excluding concession revenue, up from 38 billion last year.
“We need to trim our net profit projection of 1.2 billion baht to 800 million, as the dissolution of parliament has delayed our network expansion investment, which is aimed at opening new revenue streams for us,” he said.
AIS shares (ADVANC) closed Monday on the Stock Exchange of Thailand at 232 baht, unchanged, in heavy trade worth 1.47 billion baht.