Asia Plus Securities is revising its forecast for True Corp's performance this year after bigger-than-expected quarterly losses and a poor outlook for its cable TV business.
In a research note, Asia Plus said True's nine-month loss was equivalent to the securities house's earlier loss forecast for the whole year.
It foresees further high expenses in the third-generation cellular business as well as the loss of some of its cable TV customers.
True is expected to amortise the cost of its 3G licence by Bt900 million per annum in the next 15 years. Next year, it also needs to invest Bt8 billion in the 3G network.
TrueVisions now risks losing some of its subscribers after failing to retain the right to broadcast English Premier League soccer matches. In the third quarter, advertising revenue went up by Bt241 million from the previous quarter thanks to "Academy Fantasia" and the EPL.
"We're approaching the management for more information on the damage forecast," Asia Plus said.
In the third quarter, the group showed a net loss of Bt1.8 billion, down 15 per cent from the previous quarter. Without a foreign-exchange gain of Bt246 million, normalised loss could have hit Bt2 billion.
After failing to retain its EPL right, TrueVisions said it would allocate an additional budget to acquire more sports and entertainment programmes. It will also adjust its strategy to maintain business stability in the short and long terms.
Krungsri Securities estimated that TrueVisions would lose some high-end subscribers in the second half of next year when its existing EPL broadcasting right expires in May.
The brokerage house believes TrueVisions will partner with the EPL rights winner Cable Thai Holding to broadcast some matches to maintain its viewer base.
According to True Corp's filing to the Stock Exchange of Thailand, TrueVisions' service revenue surged 6.3 per cent year on year to Bt2.6 billion in the third quarter, mainly driven by warm response to "Academy Fantasia" Season 9, "The Voice Thailand" and other popular content, such as the EPL. - The Nation.
TrueVisions subscribers picked up year on year to 1.79 million, mainly because of the introduction of the new MPEG-4 broadcasting system in July. The new system effectively eliminates unauthorised access to TrueVisions' signal and attracts more high-end subscribers with what is claimed to be an enhanced viewing experience and an increased number of high-definition channels.
Latest stories in this category
- Charoen faces uphill task to expand empire
- Thai tycoon Charoen Sirivadhanabhakdi has no..
- Global banks to face tougher regulations
- Planned licence fees too high for smaller..
We Recommend
- Buddhists offended by sexy magazine spread
- Photos of lingerie models cavorting with Buddha..
- Obama to begin visit with tour of Wat Pho
- Big-wigs 'threaten park rangers'
Comments conditions
Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.
Source: http://www.news.thethailandlinks.com/2012/11/18/trues-outlook-bleaker-after-epl-rights-loss/
0 comments:
Post a Comment