Advanced Info Service Public Company Limited

Management said Q2 revenue growth stayed strong, supported by 16% year-on-year growth in data usage, 5G subscribers reaching 19.7 million and 41% year-on-year growth in 5G subscribers, plus improved enterprise revenue quarter-on-quarter. The company did not state consolidated revenue, EPS or gross margin figures in the remarks provided. EBITDA margin and ROIC were reported at 19%, net debt-to-EBITDA was around 2x, and average interest cost was around 2.6%. For the outlook, management maintained full-year guidance for both revenue growth and EBITDA, saying results are likely to come nearer the upper end of guidance; it also flagged higher second-half spending, possible initial virtual bank losses, and continued CapEx to support network and digital services.

The CEO framed the quarter as resilient execution in a soft economy, emphasizing demand for connectivity, premium offerings and better customer quality rather than aggressive pricing. He repeatedly stressed caution on the macro backdrop, citing fragile sentiment, geopolitical risk, higher second-half comparisons and device/equipment cost pressures, while saying the guidance stance is intentionally conservative so the company can deliver what it promises. On strategy, he highlighted broad content aggregation, stronger digital lifestyle offerings, and the launch of the Click virtual bank and PLAY package as ways to expand customer value.

The CFO said second-half EBITDA will be weighed down by IT spending that is moving into OpEx, broadband integration costs, and some spending to maintain competitiveness; he also noted the virtual bank may contribute some initial loss. On costs, he explained the Q2 admin expense drop came from reversals of previously accrued restructuring costs, and said third- and fourth-quarter admin expense should return to a normal rate. He also said interest-bearing debt could decline modestly after the special dividend, but much of the debt is long term and will follow the repayment schedule.

Analysts pressed management on why EBITDA guidance still implies a weaker second half, and management answered that the company is building in conservatism around GDP, purchasing power, war-related uncertainty and higher handset/equipment costs, while also ramping spending on integration and future competitiveness. On broadband, management said Q2 softness was tied to integration work, weather and the economy, but believes the business remains competitive and should improve once integration is largely finished this year. On content and EPL, management said the new lower-priced PLAY package is intended to expand the addressable market and reduce piracy, with any ARPU dilution expected to be small, while the strategy is to offer the best content mix rather than rely on exclusivity alone.