Shares in Total Access Communication Pcl fell nearly 1 percent to a 1-week low after the country’s second-largest mobile phone operator posted a 10 percent drop in quarterly net profit, missing forecasts, partly due to higher concession fees.
For the company earnings statement, click
The company believes higher-than-expected costs in the first quarter will subside from the second quarter due to less marketing for its Wi-Fi service, and sees upside potential from voice revenue in the second quarter with the launch of a more attractive voice package, brokerage KGI Securities said in a report.
“Overall we are still comfortable with our earnings growth forecast of 8 percent year on year for this year,” it said.
“DTAC is also our top pick for the sector as it will be the prime beneficiary of the upcoming 3G licensing and a less stringent foreign dominance rule.”
KGI has a target price on Total Access shares of 100 baht.
Total Access shares slid to 81 baht, the lowest since April 27. The stock has risen 16.6 percent so far this year, underperforming the 20.6 percent gain in the broader SET index .
Out of 23 analysts tracking the company, 15 have a buy or strong buy rating, four rate it as a hold and four have a sell and strong sell rating.
Reporting by Viparat Jantraprap in Bangkok; Editing by Jonathan Hopfner; firstname.lastname@example.org