UPDATE 1-Thai AIS sees Q4 revenue up, to refinance debt

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BANGKOK, Nov 14 (Reuters) - Thailand's top mobile phone firm, Advanced Info Service ADVA.BK, said on Friday it expected revenue in the fourth quarter to rise by 3-5 percent from the third quarter due to higher mobile use during the festive season.

"The fourth quarter is normally a high season as people spend more on mobile use and we expect revenue to be 3-5 percent higher than the third quarter," Pornrat Janjarassakul, head of corporate planning and investor relations, told reporters.

AIS's third-quarter service revenue rose 8.3 percent from a year earlier to 20.7 billion baht ($592 million) but fell 1.9 percent from the previous quarter.

The market leader planned to refinance 6.9 billion baht ($197 million) in debt due next year, of which 3.3 billion baht falls due in the first quarter, Pornrat said, adding AIS was considering several options, including bonds and loans.

The refinancing would help the company maintain cash levels to fund network expansion as it planned to invest about 25 billion baht next year if it was awarded a licence for a new, third-generation mobile network, he said.

If AIS does not get the licence, its investment budget will be close to this year's 14 billion baht, he said.

Thailand's telecoms regulator said in August it expected to issue 3G licences for a new, 2.1 GHz spectrum by the end of 2009.

AIS, which has cash flow of about 38 billion baht a year, sufficient for new investment, has room to borrow due to a low debt-to-equity ratio of 0.26, Pornrat said.

AIS, partly owned by Singapore Telecommunications Ltd (STEL.SI), reported a 29 percent rise in third-quarter earnings this week as it attracted more subscribers in the provinces.

The company maintained its 2008 revenue growth target of 7-8 percent, but analysts expected earnings growth to slow in coming quarters as the mobile sector feels the impact of weak consumer spending and a general economic slowdown.

At the midday break, AIS shares were down 5.4 percent at 78.50 baht, while the overall Thai market was 0.37 percent higher. ($1=34.97 Baht) (Reporting by Pisit Changplayngam; Writing by Khettiya Jittapong; Editing by Alan Raybould)