Management Discussion and Analysis



TRUE REPORTS INCREASED QUARTERLY REVENUE WITH STRONG BROADBAND AND TRUEVISIONS 

PERFORMANCE



BANGKOK, November 12 2010: True Corporation PLC (SET: True) posted overall 

higher revenue for the third quarter. Despite soft results at TrueMove,

TrueOnline performed well with a rise in Broadband revenue while TrueVisions

revenue grew Q-on-Q as a result of contributions from Academy Fantasia 7 and the

new Premier League season. However, higher cost pressured EBITDA to be lower

than the previous quarter.



True Group's consolidated Q3 service revenue excluding Interconnection Charges 

(IC) increased 2.0% Q-on-Q to THB 13.0 billion, down just 0.8% Y-on-Y on softer

performance at TrueMove due to competition. EBITDA was THB 4.3 billion, down

2.8% Q-on-Q and 9.9% Y-on-Y on higher costs relating mainly to network expansion

and marketing expenses.  However, FX gains from the stronger Thai Baht

contributed to a THB 1.2 billion profit.



True President and CEO Suphachai Chearavanont said, "Group revenues rebounded 

from Q2 helped by improved macro conditions and strong results from Broadband

and TrueVisions. However, Y-on-Y performance softened mainly due to competition

at TrueMove.



"We were encouraged by surges in postpaid and non-voice revenue at TrueMove, 

mainly on rising smartphone usage. This trend is expected to continue in Q4,

supported by strong sales of the iPhone 4 following its successful launch in

September," said Mr Suphachai.



"For the rest of the year, we anticipate Group revenue will grow from Q3 with 

the launch of new promotions from TrueMove and a seasonal rise in International

Roaming revenue. Moreover the impact of new Broadband services and the new

Premier League season will support growth further at TrueOnline and TrueVisions

respectively. We will also focus our efforts on controlling costs in Q4.



At TrueMove, Q3 service revenue excluding IC edged up 0.1% Q-on-Q to THB 5.7 

billion driven by robust growth in postpaid and non-voice revenue. This helped

offset soft performance in prepaid on-net calls which contributed to a 3.3%

Y-on-Y decline in service revenue excluding IC. Postpaid revenue grew 3.5%

Q-on-Q and 7.2% Y-on-Y to THB 1.6 billion with a significant rise in net adds.

Overall non-voice revenue grew 6.1% Q-on-Q and 12.1% Y-on-Y due to increased

mobile Internet usage supported by the continued expansion of TrueMove's data

network. Total net adds rose slightly to approximately 181,000 lifting total

subscribers to 16.5 million. Net IC moved towards a more balanced position with

a gain of THB 26 million compared with THB 60 million in Q2.



Strong performance in Broadband saw overall service revenue at TrueOnline 

increase to THB 6.7 billion, up 1.7% Q-on-Q and 4.3% Y-on-Y. In Q3, TrueOnline

became the first operator to provide 6Mbps Broadband as a standard service. This

saw Broadband revenue rise to THB 1.7 billion, up 5.8% Q-on-Q, 9.9% Y-on-Y and

9.1% in the first nine months of 2010. Broadband net adds rose to 35,000, up

2,200 from the three-year high achieved last quarter. Total subscribers for Q3

increased to 788,000.



TrueVisions showed improved performance following contributions from Academy 

Fantasia 7 and the new Premier League season, with service revenue rising 4.6%

Q-on-Q to THB 2.4 billion. The Y-on-Y increase was 2.8%, mainly from advertising

 sales. Overall subscribers rose 5.1% Q-on-Q, to 1.7 million.



True Group continued to deleverage with THB 1.3 billion repaid during Q3 and THB

4 billion repaid in the first nine months while the Group's net debt-to-EBITDA

ratio improved to 3.1 times from 3.2 times in Q2.



True Group CFO Noppadol Dej-Udom said, "We will continue to place importance on 

True Group's financial position by improving our credit profile through

deleveraging and refinancing. CP Group's recent agreement to purchase all True

shares held by KfW by year-end will benefit the Group by removing our obligation

to pay KfW cumulative dividends of THB 5.6 billion. We thank KfW for its

contributions to the development of True Group over the years. This share

purchase indicates CP Group's confidence in the prospects for both True Group

and the Thai telecom industry."





















































For more information (media enquiries only), please contact:

Corporate Communications & Marketing PR - True Group	Ref:	(120) 17/08/2009

Pimolpan Siriwongwan-ngam	Tel:	+66 (0) 2699 

2772	Email:	pimolpan_sir@truecorp.co.th

Sisadhi Reuben	Tel:	+66 (0) 2699 2782	Email:	sisadhi_reu@truecorp.co.th

PR FOCUS Co., Ltd. 				

Prapas Chornsarum	Tel:	+66 (0) 8 1827 7354	www.	prfocus.co.th

Saranya Chaichomphol	Tel:	+66 (0) 2654 7551-2		

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