Intouch Public : ANNOUNCES 1H-2021 NET PROFIT OF 5,474 MILLION BAHT

05/08/2021

INTOUCH ANNOUNCES 1H-2021 NET PROFIT OF 5,474 MILLION BAHT

Bangkok - 5 August 2021: Intouch Holdings Plc. ('INTOUCH') reported a net profit of 5,474 million baht from the operating results in the first half of 2021, a decrease of 4.3% from the same period of last year due to lower profit contributions from AIS and THAICOM. Mr. Anek Pana-apichon, CEO of INTOUCH, made the following statement: 'The companies in which INTOUCH has invested have been adversely affected by the sluggish economy and limited consumer spending due to the Covid-19 situation. The share of profit from AIS only decreased by 1%, due to lower revenue in the mobile business. However, the profit contribution from THAICOM fell by 90%, mainly because a one-time share of compensation was recorded in 2Q20, while there was also less revenue from satellite services as a result of lower customer usage. INTOUCH has declared an interim dividend of 1.23 baht per share from the first-half operating results. The ex-dividend date (XD) will be August 17, 2021, and the dividend will be paid on September 2, 2021.' AIS - hi-speed internet and enterprise customer bases continue to grow, supported by ongoing 5G network expansion AIS reported a 1H21 net profit of 13,685 million baht, a decrease of 0.5% YoY. Mobile revenue dropped by 2.4% due to weaker purchasing power and more intense price competition. By contrast, the hi-speed internet business recorded revenue growth of 19%, as demand increased for work- and study-from-home during the current shutdown, resulting in a net addition of 104,000 subscribers in 2Q21. In addition, the number of enterprise customers continued to grow, as more businesses found it necessary to adopt digital technology; the demand for cloud-based services, cyber-security and ICT solutions increased revenue by 12%. AIS continues to invest in its 5G network, which has been expanded to cover 25% of the population, focusing on the 2600 MHz frequency spectrum in high-usage areas. There are now over one million 5G service users, accounting for 9.6% of the postpaid subscriber base, with another million expected by the end of this year. THAICOM - ready to strengthen Thailand's satellite business THAICOM reported a 1H21 net profit of 70 million baht, compared to 695 million baht in 1H20, due to the one-time recognition of insurance proceeds (for Thaicom 5) in 2Q20, higher legal consultation fees, and the share of loss from a joint venture. THAICOM realized sales and service revenue of 1,584 million baht during 1H21, a decrease of 14% from the same period of last year, mainly due to a 13% drop in conventional satellite revenue following the deorbiting of Thaicom 5 in February 2020, coupled with less domestic usage, while revenue from the broadband satellite dropped by 15% as a result of less foreign usage. At the end of 2Q21, the committed utilization rate of the conventional satellites (Thaicom 6, 7 & 8) was 64%, a slight increase from the end of 1Q21 and 2Q20. The utilization rate of the broadband satellite (Thaicom 4) was 18%, the same as in 1Q21 but down 1% from the end of 2Q20. The cost of sales and services decreased in line with revenue. THAICOM is ready to bid in the satellite orbital slot auction to be held by the NBTC. This will strengthen its position and meet the expected increase in user demand, by utilizing the company's capabilities and experience of the business over many years. InVent portfolio - higher investment value with a focus on Health Tech, EdTech and FinTech In 1H21, INTOUCH made an additional investment in Conicle Co., Ltd. The Company recorded a dilution gain from the new funding round held by Axinan PTE Ltd. (Igloo), along with the early repayment of a loan made to one of the startup companies. Consequently, the total active portfolio value had risen to 1,084 million baht at the end of 2Q21 from 975 million baht at year-end 2020, an increase of 11%. The Venture Builder project was started in 1Q21 to provide financial support, management & accounting expertise, and business connections to tech entrepreneurs. INTOUCH's first project involves exploring the Health Tech sector, one of the new Mega Trends to uplift the quality of health services, supported by its partners and 5G technology. Utilizing the latest technology will enable medical personnel to provide accurate diagnoses and improve treatment efficiency, as well as increase access to medical care over a wider area. Three teams of innovators were selected to develop related products and services, which are expected to be ready by the end of this year. INTOUCH is focused on investing in the Health Tech, EdTech and FinTech sectors. The Company strives to create synergy in its group by investing wisely; it will continue to explore opportunities in digital lifestyle businesses and increase the proportion of its overseas investments. These will improve the lives of people in Thailand and create a competitive edge for INTOUCH Group in accessing new business areas such as 5G services, cloud computing, cyber-security and smart solutions. INTOUCH is committed to managing its existing assets and new investments in startup companies within the TMT sector, including digital businesses, in order to continue providing sustainable returns on investment for the shareholders and reach its net asset value target of 320,000 million baht by the end of 2025.