According to its filing to the Stock Exchange of Thailand yesterday, AIS posted a net profit of Bt18.9 billion last year, a slide of 6.7 per cent from a year earlier. But its closest competitor, DTAC, which has yet to release its 2005 financial results, reported a 13-per-cent increase in the fourth quarter revenue, and a net profit jump of nearly 40 per cent from the same period in 2004.

AIS posted revenue of Bt92.5 billion last year, a 4.6-per-cent drop from a year earlier, as its revenue from services and equipment rental dropped to Bt80.5 billion from Bt84.4 billion.

All cellular operators launched a price war early last year, resulting in a drop in the air time charge for prepaid phones to Bt0.25 per minute. AIS said that the fall in revenue was partly offset by lower tax bills as a result of booking prepaid revenue only after customers activate their cards. It started the practice in the third quarter of last year. It previously recorded revenue when it sold cards to dealers.

In 2005, the company paid Bt8.4 billion in taxes, down from Bt10.6 billion a year ago. AIS has more than 16 million customers.

TRIS Rating Co Ltd recently affirmed its rating of AIS and its debentures at "AA" with a "stable" outlook.

The ratings are based on AIS's dominant market position as the country's largest mobile-phone operator with an extensive customer base and strong cash generation ability even though its growth potential is limited in the medium term.

But the company continues to face intense competition, with all players introducing aggressive tariff-cutting schemes in 2005.

AIS's shares yesterday closed at Bt97, down from Bt98.

Service-revenue contributions from True Move, formerly known as Orange, to its parent True Corp Plc increased 139 per cent to Bt19.5 billion last year. An analyst of a foreign brokerage house said that the contribution would have been higher if it had not been mired in the price war.

True Move has more than 4.5 million customers. True Corp's shares closed at Bt5.85 yesterday, down from Bt5.90 on Friday.

The analyst said that AIS competitor, Total Access Communication (DTAC), this year would show a positive performance after it quickly expands its network in the provinces to catch up with AIS.

DTAC reported service revenues of Bt11.1 billion in the fourth quarter of last year - 13 per cent higher than the same period last year. Due to stricter cost control measures, it recorded a net profit of Bt1.5 billion in the quarter, an increase of 39 per cent from the same period in 2004.

DTAC, which currently has more than eight million customers, plans to spend Bt12 billion this year to expand its network.

Shares in United Communication Industry, DTAC's parent, closed at Bt50 down from Bt50.50 on Friday.

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