Growth Has Started to Pick Up at Thai Telecom Operator DTAC
Background
Total Access Communication Public Company Limited provides mobile phone sales and services through its subsidiaries.
With 25% market share, it has 23m subscribers in Thailand. The company was founded in 1989 and offers its services in the frequency bands of 800MHz, 1.8GHz, 2.1GHz, and 2.3GHz. Its major shareholder is Telenor ASA.
Business Description
Besides its core business of wireless telecommunication services, DTAC also sells mobile phones, tablets and other 4G devices.
Within the core business, the company provides prepaid and postpaid plans, with a 75% smartphone penetration. DTAC is migrating customers from prepaid to postpaid, in order to have more predictability and growth in revenue, currently at about 50/50.
The company also provides voice services, 4G network, SMS and online payment services, international roaming (IR) and interconnection charge (IC) from network lease.
DTAC offers corporate internet gateway, vehicle tracking, Ring4U (a call-waiting service) and a mobile CRM that lets organizations manage customer relations through the various computer and mobile devices.
Leadership
Boonchai Bencharongkul is the chairman of DTAC and has been in the position since 1990. He holds an Honorary Doctoral Degree in Economics from Ramkhamhaeng University, Thailand and a Bachelor of Science in Business Management from Northern Illinois University, US.
Lars-Åke Valdemar Norling has been the CEO of DTAC since 2015. However, Mr. Norling has resigned from the position and remains the place until 1 September 2018 or the date on which a successor has been appointed. He also serves as the chairman of DiGi.Com Berhad (DIGI MK), a mobile service provider in Malaysia. Mr. Norling holds an MS in Systems Engineering from Case Western Reserve University, US, an MBA from Handelshögskolan vid Göteborgs Universitet, Sweden, and MS in Engineering Physics from Uppsala Universitet, Sweden.
World Class Benchmarking
Profitable Growth has stayed in the lower half among 140 large Telecom companies worldwide. However, the trend has been positive and the rank has improved since its #8 rank in 2016.
Similar to Profitable Growth, Profitability tends to rank below average. Growth has improved from #9 in 2015-2016 to #1 in the past 12 months.
Asset utilization has ranked in the top30% over the past 5 years. Profit margin, on the other hand, has ranked poorly.
Sales growth has constantly been stuck in the bottom ranks. Margin change is what has driven the improvements in DTAC’s Growth rank.
What’re your thoughts on DTAC?
If you like our research, share it with your friends.
DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.