Weak sentiment strikes DTAC's growth forecast

Earlier, CEO Sigve Brekke said the company's second-quarter financial results were characterised not only by the normal weak seasonality of phone use, but also the overall weak economic sentiment. Therefore, the company revised its full-year forecast to mid-single-digit revenue growth.

DTAC posted a second-quarter net profit of Bt2.1 billion, up 54 per cent year on year. If the amount DTAC received from Digital Phone on settling a network roaming dispute in May is included, DTAC's net profit jumps to Bt3.9 billion.

Service revenue in the second quarter was Bt16.63 billion, up 4.2 per cent year on year.

DTAC had 17.4 million subscribers at the end of the second quarter. Of these, 777,000 were net new customers who joined up during the quarter.

DTAC shares trade on both the Thai and Singaporean stock exchanges. Its share price in Singapore closed yesterday at US$1.34, up more than 6 per cent from last Friday's market close. Its Thai share price closed yesterday at Bt48.25, up from Bt45.50 last Friday.

Wichian Mektrakarn, president of, Advanced Info Service (AIS), Thailand's largest cellular operator, yesterday said his company had yet to revise its conservative forecast of 5-6-per-cent full-year revenue growth.

He said it was normal for the second and third quarters to be a low-call season before call use jumped again in the festive fourth quarter. AIS continuously monitors the market situation, he said.