Bangkok--15 May--PR SOLUTION Lower operating and marketing costs lifts EBITDA Balance sheet continues to improve due to debt repayment and higher EBITDA More rational mobile pricing and fairer competition Direct access to international Internet gateway boosted Broadband TrueVisions’ mass market strategy maintained its momentum Convergence lifestyle strategy remains True’s key differentiator True Corporation PLC (SET: TRUE) improved its EBITDA in the three months to March 31, 2007 with reduced operating costs. The Q-on-Q improvement was seen in all True’s major business segments. True also improved its balance sheet, with net debt-to-EBITDA ratio falling to 3.7 times and debt repayment of Bt 2.3 bn, mainly in the Online business. Consolidated service revenue of Bt 13.9 bn was 8.4% higher Q-on-Q and 7.7% Y-on-Y. Consolidated EBITDA of Bt 5.1 bn was up 27.9% Q-on-Q and 6.3% Y-on-Y. The Q-on-Q improvement was attributed in part to lower network operating expenses (excluding interconnection charges or IC) and marketing costs. EBITDA margin improved to 35.6% from 30% in Q406. True’s net profit for the quarter was Bt 478 million, boosted by a one-off foreign exchange gain of Bt 1.2 billion. True’s net loss from ongoing operations (NIOGO) fell to Bt 823 million, compared with a Bt 2.1 billion loss the previous quarter. True Move’s service revenue increased 17% Q-on-Q and 25% Y-on-Y (to Bt 6.9 bn), while EBITDA was up 43% Q-on-Q and 33% Y-on-Y (to Bt 1.9 bn). EBITDA margin increased to 25.8% (compared with 20.6% in Q406 and 23.5% in Q106). True Move’s net loss from ongoing operations fell to Bt 288 mn. Overall Online service revenue grew 2.7% Q-on-Q to Bt 6.1 bn due mainly to strong growth in Consumer Broadband and less impact from mobile competition. EBITDA was up 27.2% Q-on-Q to Bt 2.6 bn, due mainly to cost reductions. Y-on-Y, service revenue was 1.1% lower and EBITDA was down 10.2%. Pay-TV business TrueVisions, rebranded from UBC at the start of the quarter, reported a net profit of Bt 443 mn for the quarter with strong recovery in EBITDA of 49% Q-on-Q and 22.5% Y-on-Y. True Move added almost 560,000 subscribers during the quarter, taking total subscribers to 8.1 million (8.6 million if restated to be in line with the subscriber counting methods of other operators). Major initiatives are planned for later this year as part of True’s convergence lifestyle strategy, including bundled promotions around the fourth season of Academy Fantasia and other TrueVisions’ content. These are expected to accelerate subscriber growth and help True Move meet its target of one-third of market net adds for the whole of 2007. “The introduction of the interconnection (IC) regime has finally encouraged more rational pricing in the mobile sector and a more level playing field for all operators,” said True CEO and President Supachai Chearavanont. “True Move expects to reap the full pricing benefits from the new IC regime in subsequent quarters, given most of its new pricing plans were introduced in early Q207.” Within the Online business, Consumer Broadband added 46,000 subscribers, taking its total to 489,000. Its performance was boosted by direct access to the international Internet gateway, allowing the introduction of its industry-leading 1 Mbps/Bt 599 promotion. Since its launch in early February, “SUPER hi-speed Internet” has attracted more than 100,000 subscribers, including existing customers who have upgraded their speeds. This has contributed to Broadband’s overall strong performance, with further gains expected in subsequent quarters. The strong growth in Consumer Broadband fully offset declines this quarter in fixed line, public phone and PCT, which in turn suffered less impact from mobile competition. TrueVisions’ subscriber numbers reached 568,000, with the business’ mass market strategy having attracted more than 130,000 customers since its launch in June 2006. True’s balance sheet continued to improve, with the ratio of consolidated net debt to EBITDA falling further to 3.7 times (from 4.6 times in FY06). True is committed to deleveraging its Online business with the fixed-line voice sector having reached maturity. Most of True’s Bt 2.3 bn loan repayments for the quarter were for the Online business. “Our convergence lifestyle strategy remains the key differentiator between True and its competitors,” said Mr Supachai. “We continue to gain subscribers and provide greater value and choice for consumers with our range of bundled packages and ability to provide rich content across various True platforms, including Internet, mobile and pay TV.” Note: In this media release, “True”, “Company”, “Affiliates” and “Subsidiaries” refer to True Corporation PLC and/or its affiliates and/or its subsidiaries. For more information, please contact: PR Department, True Group Sisadhi Reuben Tel: +66 (0) 2643 2463 Email: [email protected] Pimolpan Siriwongwan-ngarm Tel: +66 (0) 2699 2772 Email: [email protected]