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Thai True may not be profitable due to mobile costs

[BANGKOK] True Corp Pcl, Thailand's third largest mobile operator, said on Tuesday it may not make a profit this year due to high investments and rising costs on mobile networks after it won two 4G licences last year.

True planned to investUS$1.1 billion in 2016 on expanding its mobile networks and has secured a US$2 billion loan guarantee with six banks for a 4G licence, Suphachai Chearavanont, president and CEO told reporters.

But True expected earnings to improve in 2017, Mr Suphachai said, adding that the company aimed to boost its share of the mobile market to a third over the next three years from 21 per cent now.

Some analysts say True is likely to make loss over the next three to five years, mainly due to amortisation costs of the 4G licences and investment in network expansion.

REUTERS

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