True Corp Returns to Growth: ARPU Dilution vs. Subscriber Gains, and a China Mobile Reassurance
Back to Growth
True Corporation's Q2 2026 results mark a turning point: service revenue grew 0.8% year-on-year and quarter-on-quarter, the first YoY growth in many quarters. CFO Nakul Sehgal highlighted: “we have a service revenue growth of 0.8% on a year-on-year basis, first time after many quarters.” — Nakul Sehgal, Chief Financial Officer · 2026-08-05 The growth was driven by mobile and broadband, with service revenue improving across all segments on a QoQ basis. However, TV revenue continued to decline, and the company is pivoting to OTT via TrueID.
Subscriber growth came with an ARPU drag. The company added 1.1 million subscribers in the past year, but lower-value additions from the government's "Study Anywhere, Anytime" program and an NBTC active-subscriber rule diluted blended ARPU. As Sehgal explained: “we have gained 1.1 million subscribers in the last one year.” — Nakul Sehgal, Chief Financial Officer · 2026-08-05 This shows a strategic trade-off between subscriber acquisition and monetization, which the company intends to address through value management techniques.
Cost Discipline and EBITDA
EBITDA grew 13.5% YoY, with the margin reaching an all-time high of 68.5% of service revenue. This reflects disciplined OpEx and the elimination of spectrum arrangement costs. The company also leveraged AI for energy savings, learning from China Mobile. “Cost efficiency is in our DNA as we have shown in the past so many quarters since amalgamation.” — Nakul Sehgal, Chief Financial Officer · 2026-08-05 The company trimmed revenue guidance to 1-2% growth due to macro headwinds but maintained EBITDA guidance of 7-9%.
The quarterly dividend was also confirmed: “the Board of Directors has approved an interim dividend of THB 0.15, which is THB 5.2 billion at a payout ratio of 79%.” — Nakul Sehgal, Chief Financial Officer · 2026-08-05 The EBITDA growth is supported by a strong cost program, and management sees room for further efficiency via AI and system consolidation.
China Mobile Reassurance
In a notable clarification, management addressed rumors about China Mobile reducing its stake. Sehgal stated:
This reassures investors about the strategic partnership, which includes technology and AI transfers.the company, we have been confirmed from China Mobile that it has no intention to exit its entire investment in True Corporation. However, it is currently assessing a possible sale of up to 1% of its stake.
The company's China Mobile tie-up remains central to its cost and innovation agenda. The AI-driven site shutdown, which saved THB 350 million in energy costs, is a direct product of that learning. mobile business and online business are showing growth, but B2B remains nascent. Head of IR Naureen Quayum noted: “On B2B, we have growth of 1.7% on revenue this quarter, mainly from B2C.” — Naureen Quayum, Head of Investor Relations · 2026-08-05 More specifically, CFO later added: “B2B as a percentage of total revenues or total service revenues is roughly 8% to 9%.” — Nakul Sehgal, Chief Financial Officer · 2026-08-05 With regional peers at 15-20%, there is a clear runway if Thailand's enterprise market matures.
Looking Ahead
True Corporation's return to growth is encouraging, but the ARPU dilution and macro uncertainties highlight challenges. The company's focus on EBITDA growth faster than revenue, driven by cost discipline and AI, should underpin profitability. The Pay TV decline is expected as linear to OTT shift continues. With a dividend declared and leverage down, the balance sheet is solid. The market will watch whether revenue growth can accelerate beyond the low single digits while maintaining subscriber momentum.