TRUE: When the Interest Conqures the Profit…!
TRUE: When the Interest Conqures the Profit...!
TRUE: When the Interest Conqures the Profit...!
6 มี.ค. 2563

Over the past few year, many investors have been showing an anticipation and disappointment over the stock of True Corporation Public Company Limited (TRUE).
Investors anticipated TRUE to have a better turnover as its mobile operators business has been continuing to increase a number of customer and already surpassed DTAC to place as second largest market share.  
In the same time, those investors also giving a concern as the interest expense always prevent TRUE profit growth. 
Moreover, the 2019 yearly financial performance appeared that the net profit was lower by 19.9% to 5,637 million baht compared to the net profit of 7,035 million baht in 2018 and the revenue was 140,943 million baht, decreased by 13.4% from total income of 162,773 million baht.
While TrueMove H’s service revenue up 6.7% to 77,740 million baht, which gained 1.4 million newly net adds to have a total subscriber base to 30.6 million or accounted for 33% of market share during other competitors like AIS and DTAC booked a market share of 45% and 22% accordingly.
TrueOnline’s earning was 36,668 million baht increased by 0.1%, together with broadband business, which rose by 0.7% to 25,904 million baht and TrueVisions’s revenue has dropped by 9.4% to 12,014 million baht.
Importantly, TRUE has recorded a profit from asset sale to the Digital Telecommunications Infrastructure Fund (DIF).
However, with the 2019 performance, it a bit disappointed that the perfit outlook turned to lower than it supposed to. The undeniable main factor to drag TRUE’s profit was the interest expense that jumped by 40.6% from 2018 to 7,489 million baht.
Normally, the interest expense should be weakened because TRUE has expanded its license 900MHz’s cost to 10 years 10 installments.
Now TRUE is facing a condition of interest overcome profit.
Furthermore, TRUE has to assume the expense of 5G license , that might force TRUE to increase its  loan. By the end of 2019, TRUE reported a deficit of 33,630 million baht. The outlook situation has yet that worse because the stock price has downgraded 13.09% which records as the lowest point within a month. 
Whether the scene will turn to positive or negative, a 78,524 minor shareholders will surely be harmed.
 
  
 