Bangkok--Aug 11--Shin Corporation
Shin Corporation PLC (SHIN) reported net profit of Bt 2,058mn, decreased by 6.6% from the same period of last year and decreased by 14.0% from 1Q05 due to the decline in share of net results from investment. In 2Q05, share of net results from investment decreased by 7.1% from the same period of last year and 13.8% from 1Q05 to Bt 2,099 mn.
On August 11, 2005, SHIN Board of Directors passed a resolution to pay an interim dividend for 1H05 at Baht 1.25 per share, which will be XD on August 23, 2005.
For wireless telecommunication business, Advanced Info Service PLC (ADVANC) gained additional 338,000 subscribers in 2Q05 and expanded subscriber base to 15.8 million at the end of 2Q05. For satellite and international business, Shin Satellite PLC (SATTEL) managed to increase total revenue mainly from the increase in sales of user terminals for IPSTAR and the increase in revenue from telephone business. In addition, in June 2005, SATTEL issued an additional 208 million shares which were offered to the public at Baht 15.30 per share. Consequently, SHIN’s investment in SATTEL decreased from 51.38% to 41.47%. ITV PLC (ITV) as SHIN group’s media and advertising arm, showed an outstanding performance in 2Q05 with revenue from advertising skyrocketing and its growth surpassing the growth of TV ad spending industry. Total expenses also decreased slightly due to cost management efficiency.
Regarding SHIN’s budgeted airline business, by Thai AirAsia, to date has services to 8 domestic destinations and 6 international destinations. Due to the impact from the increase in jet fuel prices, Thai AirAsia introduced a fuel surcharge in May 2005 included in ticket price for both domestic and international flights.
Consumer finance business still shows a continual growth. At the end of 2Q05, Capital OK increased customers base to over 370,000 accounts with portfolio size grew to Baht 5,000 million, of which 70% are personal loan. New regulations from the Bank of Thailand (BOT) over total effective interest rate service fees and other charges, which was effective on July 1, 2005, does not have impact on 2Q05 operation since BOT allowed the existing rate to continue for one more year for loans which were approved prior to that.
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Corporate Affairs Office: 02-2995498-9
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