This article first appeared on GuruFocus .
Release Date: August 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Advanced Info Service PCL ( AVIFY ) sustained revenue growth momentum in Q2 2026, driven by a 16% year-on-year increase in data usage and continued 5G adoption, which reached 19.7 million subscribers (up 41% year-on-year).
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The company delivered solid revenue growth with prudent cost management, resulting in results that exceeded guidance across all key financial metrics, alongside improvements in both EBITDA margin and ROIC (now at 19%).
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The balance sheet remained solid with net debt to EBITDA around 2 times and a low average interest cost of approximately 2.6%, providing continued financial flexibility.
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The enterprise segment saw a recovery in revenue growth quarter-on-quarter, in line with improving economic clarity and continued demand for cloud solutions.
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The launch of the virtual bank 'Click' in July, with deposit and lending services powered by alternative data, represents a strategic expansion into digital financial services, with the platform connecting to AIS points and privilege programs.
Negative Points
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Management remains cautious about the future economic outlook due to fragile geopolitical risks and a relatively soft consumer sentiment, despite some improvement in June.
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The company faces a higher base in the second half of last year and the possibility of recognizing initial losses from the virtual bank, which could weigh on financial performance.
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Second-half EBITDA growth is expected to be impacted by increased IT spending (cloud-based OpEx), broadband integration costs, and potential contributions from the virtual bank's initial losses.
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Fixed broadband subscriber growth slowed due to seasonal softness from the rainy season and integration activities, with ARPU also softening as the economy impacts customer payments.
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The company faces cost pressures from rising prices of devices, handsets, and operational equipment due to geopolitical factors, which could impact margins and lead to a more conservative outlook.
Q & A Highlights
Q: The company's first-half performance exceeded guidance, yet the full-year EBITDA growth guidance remains at only 2-4%. Does this imply an expected EBITDA decline in the second half, and what are the main assumptions behind this conservative outlook? A: (CFO) We acknowledge the first-half performance was strong, but we are factoring in significant uncertainties for the second half, including geopolitical risks, potential cost increases from hardware and equipment, and the initial losses from the virtual bank. We are deliberately guiding conservatively to ensure we can deliver on our promises. We are also ramping up spending on IT modernization and broadband integration, which we believe will create long-term competitiveness. If we are wrong, it will be a "good wrong," meaning we will overachieve.
Q: What are the specific investments in the second half that are weighing on the EBITDA growth outlook, particularly regarding the initial investments in the virtual bank? A: (CFO) The main pressures on second-half EBITDA include increased IT spending, much of which is OpEx for cloud-based systems and app consolidation. We are also increasing spending to maintain competitiveness and incurring costs related to the broadband integration. The virtual bank will also contribute some initial losses. These are strategic investments aimed at fixing fundamentals and driving long-term growth.
Q: The fixed broadband business saw a slowdown in customer growth and a slight softening in ARPU. What is happening in the market, and how do you plan to regain growth momentum? A: (CFO) The slowdown is partly due to seasonal factors like the rainy season and the ongoing complexity of integrating the TTTBB operations, which affects our front-line staff and systems. We remain focused on growing our subscriber base with high-quality customers. While Q-on-Q results can be volatile, our year-on-year growth remains decent. Once the integration is complete, we believe our resources and product offerings will allow us to win back market share as planned.
Q: Can you provide an update on the progress of the data center JVs? Is the capacity pre-sold, and are there plans to offer GPU-as-a-service? A: (Chief Enterprise Officer) The first of our three data centers is already in operation, with the second and third coming online in the first and second halves of next year. Demand is actually exceeding our current capacity. Regarding GPU, we are using a mixed model. We have purchased some GPUs for internal use and to serve related customers, but we are not planning to make massive capital expenditures to hold GPUs solely for a GPU-as-a-service business. Our focus is on providing comprehensive cloud and AI capabilities through partnerships.
Q: The new "Play All" sports package is priced aggressively at 199 baht. Will this be profitable on a standalone basis, or is it a loss leader to drive subscriber growth? A: (Chief Enterprise Officer) We aim for this package to be profitable on its own, not a subsidized loss leader. Our strategy is to use the right price point to expand the addressable market and attract a much larger subscriber base. While some existing customers may downgrade from higher-priced packages, we believe the volume of new subscribers will more than compensate, ultimately growing overall revenue and profit.
Q: What drove the strong sequential improvement in prepaid ARPU, and what is the outlook for the second half? A: (Chief of Mobile Officer) The prepaid ARPU increase is driven by better consumption, with average usage per user up about 5% quarter-on-quarter. We are focusing on quality, both for existing customers and new acquisitions, by offering the right data packages that encourage more usage. This focus on customer value and consumption is expected to continue driving ARPU improvement.
Q: The admin expenses dropped 13% Q-on-Q despite previous guidance for high IT modernization costs. Why the big drop, and what is the trend going forward? A: (CFO) The drop was due to a one-time reversal of restructuring costs that were accrued previously but not executed. This is not a new norm. In the third and fourth quarters, we expect admin expenses to return to normal, higher levels as we continue our planned IT and integration spending, which is reflected in our conservative EBITDA guidance.
Q: With the high CapEx cycle of 14-15% of revenue, does this limit the chance of increasing the dividend payout to 100% of net profit? A: (Chief Enterprise Officer) Our CapEx-to-revenue ratio will average around 15% and not exceed that, depending on the investment cycle. This level of investment is necessary to maintain the best network infrastructure and support business growth. We do not believe this limits our ability to increase the dividend payout.
Q: Regarding the EPL partnership, what were the key learnings, and what is the strategy going forward after no longer being an exclusive partner? A: (Chief Enterprise Officer) The key learnings are that the right price point can significantly expand the addressable market, and that quality of delivery is crucial for customer satisfaction. We are now focusing on aggregating a broad portfolio of premium content, especially international sports, and offering them in attractive bundles like "Play All" to provide the best value and experience for customers, regardless of their connectivity provider.
Q: How is the lending business at the new virtual bank progressing, and what is the collection strategy if customers default? A: (CFO) The virtual bank is operating as planned for both deposits and lending. We have encountered some social media trends regarding non-repayment, which is a challenge all lenders face. Our credit scoring and risk frameworks were designed to handle this from the start. As a separate entity, we will manage bad debt according to legal and regulatory requirements, and we cannot restrict mobile or broadband services for defaulters as they are separate businesses.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
