Advanced Info Service ((AVIFY)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Advanced Info Service (AIS) recently held an earnings call that painted a positive picture of the company’s financial health and growth trajectory. The sentiment was largely optimistic, with the company showcasing strong performance across various segments, despite acknowledging some challenges such as rising administrative expenses and slower-than-expected 5G penetration. AIS remains confident about its future growth and investment strategies.
Continued Revenue Growth
AIS reported impressive results in the third quarter, with core service revenue growth driven by robust connectivity and content offerings. This growth was achieved despite facing challenging economic conditions, underscoring the company’s resilience and strategic positioning in the market.
Strong Financial Position
The company maintained a strong EBITDA margin of 55% and a return on invested capital (ROIC) of 15%, reflecting its solid financial standing. With a net debt to EBITDA ratio of 1.9x, AIS enjoys low borrowing costs, which further strengthens its financial position.
Enterprise and Broadband Growth
AIS’s enterprise segment continues to gain momentum, fueled by its EDS and Cloud services. The broadband division also delivered a strong quarter, thanks to innovative products and premium bundles that have attracted a growing customer base.
Positive Market Outlook
The macroeconomic environment in Thailand is showing signs of recovery, which bodes well for the telecom market. AIS is focusing on value creation rather than engaging in hyper-competition, which is expected to benefit the company in the long run.
Future CapEx Plans
AIS plans to maintain its leadership in network quality by increasing capital expenditures in 2026 and 2027. This is in response to growing data usage and the need for network expansion, ensuring that AIS remains at the forefront of technological advancements.
Flat Guidance Despite Strong Performance
Despite a strong nine-month performance, AIS has decided to keep its guidance unchanged. This cautious approach suggests potential headwinds in the fourth quarter, which the company is preparing to navigate.
Challenges in Admin and Marketing Expenses
The company anticipates an increase in administrative expenses in the fourth quarter due to necessary adjustments. Additionally, marketing expenses are expected to remain high, driven by seasonal campaigns aimed at boosting customer engagement.
5G Penetration Challenges
While AIS has made strides in 5G deployment, subscriber penetration remains at 34%. Growth has been slower than expected, primarily due to limited availability of 5G devices and prevailing market conditions.
Forward-Looking Guidance
Looking ahead, AIS remains optimistic about delivering strong shareholder returns. The company is preparing for future spectrum auctions and exploring investment opportunities in AI and digital infrastructures. These strategic initiatives are expected to drive long-term growth and enhance AIS’s competitive edge.
In conclusion, AIS’s earnings call conveyed a positive sentiment, highlighting the company’s robust financial performance and strategic growth plans. Despite some challenges, AIS is well-positioned to capitalize on market opportunities and continue its trajectory of success.