Bangkok--10 Nov--Thaicom
Thaicom Public Company Limited (THCOM), a leading Asian satellite operator, announced its operating results for the third quarter of 2016 today. The Company reported a consolidated net profit of 434 million baht, showing a year-over-year increase of 169 million baht, or 63.8%, from 265 million baht in Q3/2015. Meanwhile, consolidated net profit decreased 157 million baht, or 26.6%, from 591 baht in Q2/2016, mainly due to lower revenue from satellite services, the closing down of a major domestic customer, and increased costs associated with the depreciation of the THAICOM 8 satellite as it recently became operational. Excluding extraordinary items, such as gains from foreign exchange, the company posted a normalized profit of 365 million baht.
Paiboon Panuwattanawong, CEO of Thaicom, said "Despite gains from foreign exchange and our continued place as the broadband market leader in Asia Pacific, operating performance has declined over the past quarter, mainly due to one of our major domestic customers closing their operations, increased costs from the depreciation of THAICOM 8, and a slowing Thai economy."
Therefore, Thaicom is focused on increasing capacity usage and providing ongoing services in various markets as well as delivering new services to customers in order to maintain performance. Thaicom signed contracts with both IPM Company Limited in Thailand and Infosat in Lao PDR to provide satellite services on THAICOM 8. Thaicom also partnered with Kantana Group Public Company Limited to launch Kantana Play, a 2nd screen application that gives television viewers access to additional program-related content via smart devices.
On 20 October 2016, International Satellite Company Limited (ISC), a Thaicom subsidiary, entered into a satellite procurement contract with China Great Wall Industry Corporation (CGWIC). The Company has been entrusted with carrying out a new satellite project for one of Thaicom's business partners. The satellite project is valued at approximately 208 million USD, or 7,280 million baht. The business partner will lease the satellite's entire capacity and pay advanced service fees to ISC. The satellite is expected to be launched and operational around the end of 2019. The new satellite project is expected to help boost Company revenue and strengthen broadband and mobility services in the future.
Thaicom also supports the sustainable development of Thailand's satellite television industry. Together, all industry stakeholders are working to promote self-regulation and improve the creative quality of program content to increase income streams for stakeholders and improve the overall image of Thailand's satellite television industry for both the short-term and long-term benefit of service providers, state agencies, and the Thai people.
Thaicom's Internet and media services subsidiary, CS Loxinfo Public Company Limited (CSL), continued to see declines in revenue from its YellowPages media and advertising, voice info, and mobile content services due to changes in consumer behavior and technology. Meanwhile, CSL has expanded its Internet Data Center (IDC) and high-speed Internet for condominium services. The high-speed Internet for condominium subscriber base grew to a total of 8,994 subscribers in Q3/2016, up 192.1% from Q3/2015. Revenue from the IDC service continued to grow as new corporate customers subscribed to the service. In Lao PDR, Lao Telecommunications Company Limited (LTC) saw continued growth in revenue, particularly from mobile data and Internet SIM services. At the end of Q3/2016, LTC had a total of 2,030,339 phone subscribers, up from 1,891,640 subscribers at the end of Q3/2015. LTC remains the top mobile network operator in Lao PDR with a market share of 53.8%, up from 51.0% at the end of Q3/2015.