True Corporation Returns to Revenue Growth, Maintains Profitability Streak
Thailand's telecom giant posted its first year-on-year service revenue growth in several quarters while declaring a THB 5.2 billion interim dividend.
Revenue Turnaround After Quarters of Decline
True Corporation Public Company Limited reported service revenue growth of 0.8% year-on-year in the second quarter of 2026, marking "the first time after many quarters, we are back to growth," according to CFO Nakul Sehgal (earnings call, 2026-08-06). The Thai telecommunications provider also posted 0.8% quarter-on-quarter service revenue growth.
The company had experienced top-line declines throughout much of 2025, with service revenue falling 0.6% in Q1 2025, 0.5% in Q2, and further decline in Q3. The turnaround began in Q4 2025, with sequential growth continuing through the first half of 2026 (earnings call, 2026-08-06).
Total revenue declined 7.5% year-on-year, primarily due to the elimination of spectrum arrangement revenue from a previous agreement that ended in August 2025 (earnings call, 2026-08-06).
Profitability and Margin Expansion
EBITDA grew 13.5% year-on-year and 1.1% quarter-on-quarter, reaching what the company described as its "highest ever EBITDA since amalgamation" (earnings call, 2026-08-06). The EBITDA-to-service-revenue margin reached an all-time high of 68.5%, improving 7.6 percentage points from the prior year.
True posted net profit of THB 6.6 billion in Q2 2026, its "sixth consecutive quarter of profit," representing a 3.2x increase from the same quarter last year (earnings call, 2026-08-06). Operating expenses excluding depreciation and amortization fell 28.7% year-on-year, driven by the elimination of spectrum payments and ongoing synergy realization.
Business Segment Performance
Mobile revenue grew 1.6% year-on-year, or 2% when normalized for the decline in domestic roaming revenue. The segment added 407,000 prepaid subscribers and 71,000 postpaid subscribers during the quarter (earnings call, 2026-08-06). However, ARPU declined due to the addition of lower-value subscribers from government education programs and regulatory changes requiring minimal balance for active status.
Broadband revenue increased 1.7%, supported by B2C growth and the company's MyPlan offering, which now accounts for "almost 50% acquisition" and drives ARPU increases of approximately 23% (earnings call, 2026-08-06). The segment added 28,000 net subscribers.
Pay TV revenue declined year-on-year due to the absence of English Premier League rights and fewer seasonal concerts, though the segment saw sequential improvement.
Dividend and Leverage
The Board of Directors approved an interim dividend of THB 0.15 per share, totaling THB 5.2 billion, representing a 79% payout ratio on consolidated profits. The dividend will be paid on September 2, 2026, to shareholders of record on August 18 (earnings call, 2026-08-06). MarginX data shows this is the company's second consecutive quarterly dividend, following a THB 0.14 payment in Q1.
Leverage improved to 3.7x net debt-to-EBITDA, down 0.3x year-on-year and 0.1x quarter-on-quarter. The effective interest rate declined to 3.6% from 4.0%, aided by calling back debentures and issuing THB 16.5 billion in new debentures at a 2.6% weighted average rate (earnings call, 2026-08-06).
Revised Guidance Amid Macro Headwinds
True revised its full-year service revenue growth guidance to 1-2%, citing "macroeconomic uncertainties" including 5% lower tourist arrivals year-to-date and "geopolitical and global supply chain uncertainties" (earnings call, 2026-08-06). The company maintained its EBITDA growth target of 7-9%, expressing confidence in continued cost discipline and vendor negotiations.
This article was generated by MarginX from the earnings call on 2026-08-06. It is not investment advice.