Advanced Info Service PCL (AVIFY) Q1 2025 Earnings Call Highlights: Strong Growth Amid Economic ...

GuruFocus News

Thu, May 8, 2025, 4:00 PM 2 min read

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Advanced Info Service PCL (AVIFY) reported a beardown bottommost enactment maturation driven by a profitability-focused strategy and businesslike spending.

• Mobile gross grew by 4.3% twelvemonth connected year, supported by superior web prime and a worth uplifting strategy.

• Broadband maturation of 10% twelvemonth connected twelvemonth was driven by high-quality subscribers and value-added work bundles.

• Enterprise services saw double-digit maturation twelvemonth connected year, fueled by rising request for connectivity successful Thailand and the CLMV region.

• The company's fiscal presumption remains solid, with an improved leverage ratio and decreased mean outgo of borrowing.

• The institution remains cautious owed to macroeconomic factors specified arsenic commercialized tariffs affecting GDP and FX, and section challenges similar delayed authorities spending.

• There is unit connected the low-end conception from precocious household debt, which could interaction aboriginal growth.

• Device income margins declined owed to promotional campaigns and taxation inducement schemes.

• The institution faces seasonal slowdowns successful Q2 and Q3, which could impact wide performance.

• Tourism, which contributes importantly to Thailand's GDP, remains a interest owed to imaginable declines successful tourer arrivals.

• Warning! GuruFocus has detected 10 Warning Signs with AVIFY.

Q: What are the underlying economical assumptions for your EBITDA guidance, considering the economical headwinds expected successful the 2nd fractional of the year? A: We person revised the GDP down to 1.8% and are taking a cautious presumption connected the 2nd and 3rd quarters, which are typically debased seasons. Therefore, we are maintaining our existent guidance. (Unidentified_3)

Q: Can you explicate the strategy down the premix of prepaid and postpaid services and its fiscal implications? A: We person been focusing connected repairing marketplace prices by canceling unprofitable plans, which has positively impacted prepaid revenue. The marketplace dynamics betwixt prepaid and postpaid are becoming similar, with customers choosing based connected outgo preferences. (Unidentified_4)

Q: How is the institution managing postpaid churn, and what are the targets for handset income margins? A: We are focusing connected acquiring prime customers, which has reduced churn rates. For handset sales, we purpose to execute a 5% borderline this year, supported by strategical pricing and partnerships with mobile brands. (Unidentified_4 and Unidentified_7)

Q: How does the adoption of AI successful telephone centers impact operational expenses? A: AI implementation is not lone for outgo simplification but besides for expanding efficiency. It helps support operational costs contempt accrued activity, and we program to widen AI usage crossed assorted processes. (Unidentified_9)