Advanced Info Service PCL (AVIFY) Q3 2024 Earnings Call Highlights: Strong Broadband Growth and ...

GuruFocus News
3 min read

In This Article:

  • Broadband Subscriber Base: Close to 5 million subscribers.

  • Cloud Revenue Growth: Boosted by large cloud projects in the quarter.

  • Green Funding Initiatives: Launched Green Bonds and Green Loans for sustainability projects.

  • 9-Month Performance: Exceeded guidance due to increased economic stability and tourism rise.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Advanced Info Service PCL (AVIFY) reported healthy growth in its mobile business, driven by stable competition and increased data consumption.

  • The company maintained growth in its broadband segment, nearing a subscriber base of 5 million, with a focus on upselling higher-value packages.

  • Enterprise non-mobile services benefited from increased demand for EDS and cloud services, with significant cloud revenue growth from large projects.

  • The company launched green funding initiatives, including Green Bonds and Green Loans, to support sustainability-focused projects like expanding 5G networks in rural areas.

  • Advanced Info Service PCL (AVIFY) exceeded its 9-month performance guidance, benefiting from increased economic stability and a steady rise in tourism.

Negative Points

  • The company faces challenges from a lower GDP forecast due to weaker consumer sentiment, slower private investment, and recent flooding impacts.

  • Consumer sentiment for the fourth quarter remains uncertain, with GDP forecasts revised down despite expected government stimulus.

  • There is a potential for increased CapEx in the future, as the company strategizes its investments for next year.

  • The company experienced a sequential decline in blended ARPU, attributed to seasonality and optimization of device subsidies.

  • Advanced Info Service PCL (AVIFY) is closely monitoring the impact of recent floods, which heavily affected customers in Thailand's northern and northeastern provinces.

Q & A Highlights

Q: Can you share recent trends in monthly revenues, especially after the flooding impact? A: Revenue growth continues with minimal impact from flooding. We see benefits from price repair flowing through this quarter and into the next, with stable growth expected.

Q: What are your plans regarding CapEx for next year, considering the 5G network build-out? A: There are some delays in CapEx investment this year, but we plan to maintain our guidance. Next year's strategy is not finalized, but if business remains the same, CapEx might decrease.

Q: How did the third quarter handset sales perform, and what is the outlook for the fourth quarter? A: Handset sales showed strong performance with high gross margins. We expect continued growth in Q4, especially with high season sales and potential government stimulus packages.

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