Thaicom Reports Q1/2023 Results
Net Profit and Core Profit increased 77% and 48% YoY, respectively
New revenue stream from Globalstar
Shareholder approval of the investment in a satellite project
Bangkok, Thailand, 9 May 2023 – Thaicom Public Company Limited (SET Thailand: THCOM), satellite operator, announced its financial results for Q1/2023.
Thaicom’s net profit attributable to the owner of the company for Q1/2023 was Baht 90 million, an increase from Q4/2022 (QoQ), where there was a net loss of Baht 439 million. The main reason was the reduction in net foreign exchange losses as the Thai baht depreciated against the US dollar since the company has more US dollar-denominated assets than liabilities. The net profit attributable to the owner of the company for Q1/2023 increased by 77% compared to that of Q1/2022 (YoY) of Baht 51 million, due mainly to the increase in sales and service revenue.
Thaicom reported a core profit of Baht 131 million for Q1/2023, an increase compared to a loss of Baht (27) million in Q4/2022 (QoQ). The main reasons for the increase were the reduction in realized foreign exchange losses and a decrease in selling and administrative expenses. Compared to Q1/2022 (YoY), in which the core profit was Baht 92 million, Q1/2023’s core profit increased by 48.3% from Baht 88 million due to higher sales and service revenue.
Sales and service revenue in Q1/2023 amounted to Baht 735 million, close to Baht 738 million in Q4/2022 (QoQ). Compared to Q1/2022 (YoY), sales and service revenue increased by 6.5% from Baht 691 million, driven by higher conventional satellite service revenue (Thaicom 7 Satellite and Thaicom 8 Satellite), as well as the recognition of income from ground station (gateway) management fees from Globalstar and other consulting fees.
Globalstar Inc. is a global LEO satellite operator and a leading provider of satellite IoT (Internet of Things) solutions and mobile satellite services. As part of the company’s expansion into the space tech domain, Globalstar and Thaicom collaborate on the establishment and operation of Globalstar’s low-earth orbit satellite (LEO) ground facilities in Thailand. The commercial service deployment is expected in 2H/2023, where Thaicom and Globalstar will initially commercialize the satellite-based tracking system to safeguard tourists; the tracking device is installed with the life jacket. In an emergency, the sensor will identify the coordinates of the tourist and instantly alert the government authority responsible.
On April 7, 2023, Thaicom’s Shareholders Meeting approved the investment in a satellite project for the orbital slot of 119.5 degrees East as a priority with a total investment budget of no more than Baht 15,203 million. Currently, Thaicom is sourcing qualified satellite manufacturers as well as securing presale capacity on the new satellite.
As of the end of Q1/2023, Thaicom’s conventional satellites providing services under telecommunication licenses were Thaicom 7 and Thaicom 8. The overall utilization rate was 55%, an increase from 53% at the end of 2022.
Lao Telecommunications Public Company (LTC), as of the end of Q1/2023, Lao Telecommunications Public Company (LTC) and TPLUS Digital Company Limited (TPLUS) reported consolidated mobile subscribers of 2.44 million, an increase in comparison with the 2.32 million subscribers as of the end of 2022.
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