Thaicom Reports Q1/2022 Results
Bangkok, Thailand, 6 May 2022 – Thaicom Public Company Limited, a satellite operator, announced its financial results for the first quarter ended 31 March 2022.
For Q1/2022, Thaicom’s net profit from core business operations (excluding effect of foreign exchange and share of profit from investment in joint ventures) was Baht 148 million, significantly increased from the net loss from core business operations for Q1/2021 of Baht 24 million. At the end of the Concession, Thaicom completely handed over possession of the satellites and other assets under the agreement to the Ministry of Digital Economy and Society, resulting in a decrease in depreciation costs and concession fees. Despite the decrease in revenue from sales and services during Q1/2022, Thaicom was successful in cost control and foreign account receivable management, and therefore, significant profitability was achieved.
Thaicom reported revenue from sales and services for Q1/2022 of Baht 691 million, down by 12.4% from Q1/2021 of Baht 788 million. This resulted mainly from decreased utilization by domestic broadcast customers. For broadband services, revenue declined compared with that of Q1/2021 from the decrease in usage from foreign customers, but it was maintained compared with that of Q4/2021.
Net profit for Q1/2022 was reported at Baht 51 million, a decline of 54.6% from Baht 111 million for Q1/2021. This was mainly due to the recognition of a loss from foreign exchange of Baht 23 million while incurring a gain on foreign exchange of Baht 151 million during Q1/2021, together with the loss from the share of profit of investment in the telephone business in Laos PDR which also due to foreign exchange.
At the end of Q1/2022, the overall utilization rate of Thaicom’s satellites, Thaicom 7 and Thaicom 8, was 54%.
During Q1/2022, Thaicom entered into several technology and business cooperation with domestic and international partners. The collaboration was a strategic move in expanding Thaicom’s portfolio of cooperation with leading partners, which would complement our existing satellite services.
(1) A partnership agreement with Globalstar Inc. (NYSE American: GSAT), a global LEO satellite operator and a leading provider of satellite IoT (Internet of Things) solutions and mobile satellite services, to collaborate on the establishment and operation of Globalstar’s low-earth orbit satellite (LEO) ground facilities in Thailand and regional commercial service deployment, with a focus on personnel safety and management solutions for Thailand’s tourism and maritime industry.
(2) An agreement with Amazon Web Services, Inc. (AWS), an Amazon.com company, to quickly and easily create, transform, and deliver Thaicom digital content by leveraging AWS’s global cloud infrastructure, advanced video technologies, and pay-as-you-go-model. Thaicom can produce high-quality video streams for distribution to its national and worldwide customers.
(3) A Memorandum of Understanding (MOU) with the Thai General Insurance Association (TGIA) to adopt satellite technology for crop insurance. The collaboration is to provide technology from remote sensing satellites with artificial intelligence to analyze data for TGIA in order to deliver prompt, comprehensive, and efficient information for its project management. This aims to enhance the country’s development by targeting the use of data from earth observation satellites to improve and raise efficiency in crop insurance in Thailand’s agriculture sector.
Lao Telecommunications Co., Ltd. (LTC), Thaicom’s telecommunication and mobile service provider subsidiary in Lao PDR, reported total mobile subscribers of 2.02 million and maintained its position as the country’s leading mobile network operator.
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