One of Thailand’s biggest telecom companies, Dtac, has reported a record 90% slump in net profit for the second quarter of the year, reports Retail News Asia.
Net profit for the quarter fell to $4 million (141 million baht). The company’s total subscriber base shrank by 524,000 to 25 million, with prepaid subscribers falling by 715,000.
However, postpaid net additions increased by 77%.
In its quarterly report, Dtac blamed the weak performance on competitors’ aggressive subscriber acquisition activities, especially through strong distribution channels.
In response to the decline, Dtac has re-introduced prepaid handset subsidies and launched new Dtac prepaid branded SIMs, targeting data-orientated users.
Dtac’s 4G user base meanwhile increased from 2.9 million in Q1 to 3.5 million in Q2, and the operator aims to grow this to 6 million by the end of the year.
Dtac warned it expects intense market competition to continue into the second half. As a result, the company expects service revenues to slightly decline from the previous year.
A version of this appeared in Retail News Asia on July 14. Read the full version here.