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Introduction & Market Context
True Corporation PCL (SET:TRUE) reported a return to profitability in its first quarter 2025 financial results presentation on May 9, 2025. The Thai telecommunications giant posted a net profit of THB 1.6 billion, marking a significant turnaround from the THB 0.8 billion loss in the same period last year. The company’s stock closed at 12.5 THB on the day of the announcement, up 1.6%.
The results come as True enters the third year of its post-amalgamation journey, with the company now focusing on transformation for growth after completing much of its integration process over the previous two years.
As shown in the following key highlights slide, True achieved modest service revenue growth while delivering substantial improvements in profitability metrics:
Quarterly Performance Highlights
True Corporation reported service revenue of THB 41.3 billion in Q1 2025, representing a marginal increase of 0.1% year-over-year but a 0.7% decline quarter-over-quarter. The company attributed this performance to challenging macroeconomic conditions and seasonal factors.
EBITDA showed more robust growth, increasing 7.1% year-over-year to THB 25.3 billion, with the EBITDA margin expanding to 49.1% from 46.0% in Q1 2024. This improvement was primarily driven by ongoing synergies and financial discipline following the company’s amalgamation.
The detailed financial performance shows varying results across business segments:
Mobile service revenue grew 0.6% year-over-year despite subscriber numbers declining from 51.1 million in Q1 2024 to 48.8 million in Q1 2025. This growth was supported by improved ARPU (Average Revenue Per User), which increased to THB 214 per subscriber per month compared to THB 204 in the same period last year.
The online segment, which includes broadband and corporate internet services, showed stronger performance with revenue growth of 1.9% year-over-year. This improvement was driven by both subscriber growth (3.8 million, up from 3.7 million) and ARPU increases (THB 524, up from THB 506).
PayTV revenue declined 13.2% year-over-year, primarily due to lower concert revenue, while subscription revenue remained relatively flat. The segment continues to face challenges as consumers shift from traditional linear TV to OTT (Over-The-Top) streaming services.
Detailed Financial Analysis
True’s return to profitability is particularly notable given the challenging market conditions. The company reported normalized net profit (adjusted for one-time effects) of THB 4.3 billion, a substantial improvement from THB 0.8 billion in Q1 2024.
This profit turnaround was supported by significant cost reductions, with operating expenses (excluding D&A) declining 5.7% year-over-year to THB 26.2 billion:
The cost savings contributed to the 7.1% year-over-year EBITDA improvement, with EBITDA margin expanding to 61.2% of service revenue:
True also made progress in strengthening its balance sheet, reducing net debt by THB 33 billion year-over-year and improving its leverage ratio by 0.9x to 4.1x. This debt reduction is part of the company’s ongoing financial discipline strategy following its amalgamation.
Strategic Initiatives
True Corporation is currently in the third year of its post-amalgamation journey, transitioning from integration to transformation for growth. The company outlined three key strategic pillars:
Network modernization remains a priority, with 87% of sites (15.6K) already modernized. The company expects to complete this process by Q3 2025, which should enhance customer experience and operational efficiency.
True is also focusing on organizational transformation, implementing AI-centered simplification and automation in systems and processes. This approach aims to create a leaner, more agile organization while improving customer experience across all touchpoints.
The company has identified specific business priorities for each segment to drive mid to long-term growth:
In the mobile segment, True is pursuing a "more-for-more" strategy with customer lifecycle management, while also leveraging growth opportunities from convergence and increasing tourist arrivals.
For the online segment, the focus is on subscriber growth through innovative products and bundled services to drive ARPU. The company is also selectively considering untapped demand in Thailand.
The PayTV strategy involves migrating customers from linear to OTT services while enhancing content through partnerships and protecting premium customers, particularly those subscribed to English Premier League content.
In the B2B segment, True aims to grow core connectivity services while expanding beyond core offerings to achieve 2x growth in three years.
Forward-Looking Statements
True Corporation reiterated its guidance for 2025, projecting service revenue growth (excluding interconnection and domestic roaming) of 2-3% and EBITDA growth of 8-10%. Capital expenditure is expected to be THB 28-30 billion, including integration CAPEX, and the company forecasts continued profitability for the full year.
The company also highlighted its sustainability initiatives across environmental, social, and governance dimensions:
On the environmental front, True has set Net Zero long-term targets validated by the Science Based Targets initiative (SBTi) and received an A- rating from the Carbon Disclosure Program (CDP) for 2024.
Social initiatives include earthquake relief and rescue support, with 24/7 mobile base stations and free Wi-Fi, as well as the completion of Cell Broadcast Service nationwide.
In governance, the company’s True CyberSafe program has protected customers from over 490 million cyber threat attempts during Q1 2025. True was also incorporated into the FTSE ASEAN 40 index from March 2025, reflecting its growing prominence in the regional market.
As True Corporation progresses through its transformation journey, the Q1 2025 results suggest that the company’s focus on cost synergies and financial discipline is yielding positive results, even as it navigates challenging macroeconomic conditions and evolving consumer preferences in the telecommunications sector.
Full presentation:
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