THCOM 13 THB
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Thaicom Reports 1/2024 Results

 

 

  • Net Profit of Baht 288 million, surged 220% YoY
  • Strengthen fleet at 119.5 degrees East with THAICOM-9, provided by Astranis (USA)
  • Expect a significant turnaround in Lao Telecommunications Public Company (LTC) performance in 2024, driven by the Lao government’s announcement of an increase in mobile service tariffs.

Bangkok, Thailand, 8 May 2024 – Thaicom Public Company Limited (the “Company” or “THCOM”), satellite operator, announced its financial results 1/2024.

Thaicom Public Company Limited reported a net profit of Baht 288 million for Q1/2024, an increase of 220% YoY from Q1/2023, marking a significant turnaround from the Q4/2023 loss of Baht 306 million. In 1Q/2024, the Thai baht had been depreciated against the US dollar. As an exporter with a significant international customer base, the Company’s revenue is largely denominated in
US dollar-related contracts. Therefore, this depreciation favorably impacted the Company’s total revenue and net profit. Consequently, Q1/2024 saw a 33% YoY and 173% QoQ increase in total revenue, amounting to Baht 910 million.

In Q1/2024, the Company generated revenue from sales and services of Baht 609 million, which is relatively close to Baht 629 million in Q4/2023 (QoQ) and Baht 735 million in Q1/2023 (YoY). The decrease compared to Q1/2023 was mainly attributed to the absence of project-based revenue from a System Integration and other consulting fees. Despite the overall revenue decline, the Company witnessed a continuous upward trajectory in the utilization rate of the satellite services. As of the end of Q1/2024, the utilization rate for the Company’s conventional satellites providing services under telecommunication licenses via THAICOM-7 and THAICOM-8, reached 62%, demonstrating a consistent upward trend for three consecutive quarters. This improvement, driven primarily by growth in international customers.

Regarding telephone business abroad, Lao Telecommunications Public Company (LTC) is well-positioned to reap significant benefits from the tariff restructuring for telecom services implemented by The Ministry of Telecommunication and Communication of the Lao PDR. These measures involve price adjustments for both mobile and fixed broadband. In response to these regulatory changes, LTC has increased its prices to align with the new pricing structure, effective 1 March 2024. The full impact of the pricing restructuring on LTC’s revenue is expected to be realized in Q2/2024 onwards. The tariff adjustment is expected to bolster significant long-term earnings growth potential for the Company.

THCOM is committed to elevating satellite utilization across the new satellite fleet, including THAICOM-9 and THAICOM-10. In a significant development, the Company has secured an agreement with Eutelsat Asia, a subsidiary of Eutelsat SA, one of the world’s leading satellite operators from France. Under this strategic partnership, Eutelsat Asia is committed to lease and operate service for 50% of THAICOM-10’s total capacity throughout its 16-year lifetime, ensuring continuity of service excellence and effectively addressing the growing customer demand that underpins the Company’s business growth trajectory.

THCOM seeks to leverage its strong presence in Thailand, India, Indonesia, the Philippines, and other countries in South and Southeast Asia. The Company will focus on signing long-term service agreements with existing customers to maintain a stable and sustainable customer base. Additionally, the Company aims to strategically expand its broadband services to prepare for the ever-increasing demand for broadband connectivity and capitalize on opportunities presented by new satellites and major projects, such as government projects in Thailand and the Philippines, and to provide services in remote areas of India.

THCOM has announced the selection of Astranis, a leading U.S.-based satellite manufacturer and operator, to provide THAICOM-9 scheduled for launch in 2025. The newest addition to strengthen Thaicom’s fleet at 119.5 degrees East, THAICOM-9 will ensure seamless continuity of service for existing THAICOM-4 customers and support the growth of new customer segments. This cutting-edge satellite will leverage High Throughput Satellite (HTS) technology to elevate THAICOM’s service offerings to new heights, including an industry-leading time to market as well as flexibility to adapt its mission while on orbit. The satellite is equipped with high-performance software-defined radio, that can change coverage and bandwidth allocation on orbit to serve multiple geographies while also allowing it to dynamically change frequencies, power levels, and other operational variables on the fly.

 


Media Contact:

Corporate Communications

Tel: +66 2-596-5060

Email: [email protected] / [email protected]

 

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