Thailand Financial News

- Revenue increases 21.7%; EBITDA 7.8%

- Total subscribers pass 11 million True Corporation PLC (SET: TRUE) posted strong revenue and subscriber growth in FY 2006, with significant contributions from each of its three key businesses: True Move, Consumer Broadband and TrueVisions (formerly UBC).

True CEO and President Supachai Chearavanont said the year was marked by the successful integration of pay-TV operator TrueVisions into the Group and the implementation of True’s convergence lifestyle strategy. “In 2006 we were able to start to bundle different True Group products and services across our voice, data and video platforms, and this enabled us to post record subscriber growth, especially at True Move and TrueVisions,” said Mr Supachai. “The integration of TrueVisions to the Group also allowed us to greatly expand the range and quality of our offerings. Total subscribers for True Group increased 33% to more than 11 million, and we aim to grow this number significantly in 2007.” True’s consolidated service revenue increased 21.7% in FY06 to Bt 50.4 bn, due to the full consolidation of TrueVisions, and strong contributions from True Move and Consumer Broadband. EBITDA was 7.8% higher at Bt 16.9 bn, due to the contribution of TrueVisions. True’s net loss for FY06 was Bt 818 million lower at Bt 1.9 bn, excluding special items mainly related to the acquisition of TrueVisions. Consolidated service revenue for Q406 was up slightly from Q306, with EBITDA and EBITDA margin falling due partly to seasonal cost increases. For the quarter, True Move service revenue rose 2% while EBITDA was unchanged. Consumer Broadband service revenue was 2.8% higher. TrueVisions service revenue was stable but EBITDA was down 28.7%, due to cost increases, some of them seasonal. True Move posted record subscriber growth for the year of 3.1 million, gaining almost 32% of total net adds to reach 7.6 mn subscribers – a market share of 19.3%. True Move service revenue for FY06 was 13.9% higher at Bt 22.3 bn although higher costs related to network expansion meant EBITDA was down 0.5% to Bt 5.1 bn. “One of the highlights in recent months for True Move was the signing of interconnection agreements with our largest competitors. These should encourage a fairer market environment and more sensible pricing of mobile services,” said Mr Supachai. Consumer Broadband growth for FY06 accelerated with revenue approximately 50% higher and subscriber numbers rising 47% to 443,000. Continued growth in overall Internet and other non-voice revenue helped to partially offset the ongoing decline in True’s fixed-line voice revenue.

During the year the National Telecommunications Commission (NTC) granted True an international Internet gateway license, which True was able to use from early 2007. This has already allowed True to offer better value hi-speed packages to its broadband customers. TrueVisions posted service revenue of Bt 8.3 bn and EBITDA of Bt 2.1 bn for FY06, lifting subscriber numbers by 30% to 629,269, including TrueVisions-True Move bundled packages. Much of this gain was due to the successful implementation of TrueVisions’ mass market strategy – a key rationale for True’s acquisition of the business – which greatly increased household penetration by other True Group products and services, as well as expanding the overall market for pay-TV. Chief Financial Officer Mr William Harris said True repaid Bt 8.0 bn of debt in 2006, strengthening its balance sheet. True also completed long-term financing for the TrueVisions acquisition and made a Bt 3.4 bn equity placement, while True Move completed a USD 465 mn international bond issue. In addition, True has adopted an accounting policy on deferred taxes that increased shareholders’ equity at YE06 to Bt 7.4 bn. True remains committed to deleveraging its balance sheet. The ratio of consolidated net debt to EBITDA for FY06 was 4.6 times, compared with 4.8 times a year earlier and 6.5 times four years ago. For more information, please contact:

PR Department, True Group  (036)27/02/2007                 Pr Solution       Tel. 0-2656-8059