True Corporation has showcased robust operating results, reaping the benefits of integration (Synergy) and exceeding its 2023 goals. The telecommunications giant, led by Mr. Nakul Sehkal, Joint Chief Financial Officer, has accelerated its roadmap to industry leadership. The company’s focus on aggressive growth involves expanding its digital service portfolio and capitalizing on consolidation across the organization to drive sustainable profits and value by 2025.
Speaking at a media press conference on February 23, 2024, at True Tower Building, Mr. Nakul Sehkal detailed the significant achievements during the 4th quarter of 2023. Notably, the success in realizing merger benefits within the initial 10 months post-merger instills confidence in the company’s strategic direction.
Key highlights from Mr. Nakul’s presentation include the growth in service revenue for three consecutive quarters, driven by increased ARPU and subscriber numbers, particularly among tourists and foreign workers. EBITDA has witnessed four consecutive quarters of growth, attributed to merger benefits, total income growth, and operational efficiency improvements. True Corporation has successfully modernized its organization, surpassing operational efficiency targets by 135%, with a 4% increase in employee engagement.
The company’s commitment to sustainability is evident through its 6th consecutive top-ranking position in the DJSI 2023 Sustainability Index for the telecommunications industry. True Corporation has realized gross synergies of 29 billion baht, surpassing net synergy benefits by 700 million baht, a result of expedited modernization processes.
TrueCorp has undertaken over 100 projects, with 15 key projects contributing to 85% of the combined benefits. Leveraging CP Group’s sales channels and Telenor Group’s global purchasing partnerships has further amplified the merger’s perceived benefits in terms of investment (CAPEX).
Mr. Nakul Sehkal envisions 2023 as a year of mergers and restructuring, 2024 as a transition to profitable growth, and 2025 as a year of sustainable profits and added value. The company’s business strategy focuses on three key areas: customer experience, growth, and realizing integration benefits.
Network modernization and the integration of artificial intelligence (AI) play a pivotal role in enhancing customer experience, with investments aimed at achieving efficiency in CAPEX. TrueCorp plans to allocate 30 billion baht for CAPEX in 2024, primarily for network modernization, aiming to upgrade 10,000 cell towers and support the digital transformation of the organization.
The company aims to upgrade a total of 17,000 signal towers by 2025, covering 99% of the Bangkok area and the Eastern Special Development Zone project, along with 90% coverage nationwide.
True Corporation sees opportunities in becoming a telecommunications-technology company, anticipating over 16 million True 5G subscribers, 4 million home internet customers, and more than 40 million users of various digital services. The company aspires to be the Digital Growth Champion, offering a wide range of services from mobile phones to Smart Living, emphasizing a transition in 2024.
In terms of financial outlook, TrueCorp anticipates service revenue growth of 3-4% in 2024, aligning with Thai GDP projections. EBITDA growth is expected to be 9-11%, supported by cost control and consolidation benefits. The company envisions achieving benefits from gross synergies of 2-25 billion baht in the current year, with a Leverage Ratio likely to be lower than the 4.5 times target set for 2025.
Mr. Nakul Sehkal emphasized the importance of the Thai bond market for True’s capital needs, highlighting the successful bond issuance in January 2024, reflecting investor confidence in the company. The company remains poised for a bright future, with a focus on sustainable profits, technological innovation, and customer-centric growth.
