Thaicom Reports Q2/2022 Results
Core Profit for 1H/2022 at Baht 338 million, turnaround from the loss of Baht 106 million YoY, and the core profit for Q2/2022 was Baht 200 million, increased 45% QoQ
Bangkok, Thailand, 5 August 2022 – Thaicom Public Company Limited (THCOM), a satellite operator, announced its financial results for the second quarter ended 30 June 2022.
For Q2/2022, Thaicom’s core profit (operating profit excluding gain/loss from foreign exchange, the share of profit of investment in joint ventures, and other extra items) was Baht 200 million, increased by 45% from that of Q1/2022 (QoQ) of Baht 138 million due to revenue increase. Compared YoY, the decrease in satellite depreciation and concession fee after the concession ended, together with efficient cost control, led to the turnaround of the Company’s core profit in Q2/2022 from the loss of Baht 86 million for Q2/2021. And for the first half of 2022, THCOM generated core profit of Baht 338 million, turned from the loss of Baht 106 million for the same period last year.
During Q2/2022, the Company recorded Baht 229 million gain from the foreign exchange due to Thai Baht depreciation against the US Dollar as its USD assets exceed liabilities. Therefore, its net profit for Q2/2022 was Baht 309 million, increased by 511% QoQ, and turned from the net loss in Q2/2021 (YoY) of Baht 41 million. For the first half of 2022, Thaicom generated a net profit of Baht 360 million, an increase of 413% from Baht 70 million for the same period last year.
Thaicom reported revenue from sales and services for Q2/2022 of Baht 737 million, increased by 7% QoQ from the increase of revenue from international customers, together with the benefits from Thai Baht depreciation against the US Dollar since part of the Company’s revenue was linked to the Dollar currency. Compared YoY, the revenue for Q2/2022 declined 7% from Q2/2021. For the first half of 2022, Thaicom reported revenue from sales and services of Baht 1,427 million, also decreased by 10% YoY. This was mainly due to the ramp-down of domestic broadcast revenue. However, the Company was able to continuously maintain its profitability.
During Q2/2022, the Company and NXT Digital Limited (NDL), a company in the Media & Digital Vertical of Hinduja Group, one of the largest conglomerates in India, signed a Memorandum of Understanding (MOU) to form a strategic partnership to enter the Broadband-over-satellite market and related services in India via OneOTT Intertainment Limited (OIL), the broadband subsidiary of NDL and India’s third largest private Internet Service Provider (ISP) with over 1 million customers. The service will focus on providing quality broadband not only to rural markets but also to underserved regions facing connectivity challenges. India is one of the largest target markets for Thaicom with high growth potential due to its broad landscape with connectivity challenges suitable for broadband-over-satellite. This partnership not only provides business opportunities for the Thaicom 4 satellite but also enhances the potential utilization of a new High Throughput Satellite (HTS) with Indian market future demand.
The partnership with NDL also included global emerging solutions for India, ranging from satellite AI solutions comprising space-based data technologies for agriculture and natural resource management to public Wi-Fi and drones for augmenting rural digital solutions. NDL and Thaicom will also look into setting up a Centre for Excellence to develop new satellite and related digital-based technologies using artificial intelligence and analytics.
Thaicom also announced the deployment of LEO satellite Internet of Things (IoT) Solutions, the first collaboration project with Globalstar Inc., a global LEO satellite operator and a leading provider of satellite IoT solutions. The solutions are aimed at improving personnel safety and management for tourism in Thailand as well as the maritime industry in the region. In response to the government’s plan to fully reopen the country after the ease of the COVID-19 situation, the solutions will be deployed first in Phuket and then expanded to other tourist destinations in the country.
The satellite-based tracking system was designed to safeguard tourists. Water tourists must carry a tracking device while on the water; the tracking device is installed with the life jacket. In an emergency, with the press of a one-touch SOS button, an alert is instantly sent to Marine Services, the government authority responsible for maritime safety, along with the user’s GPS location coordinates. This project was built on the collaboration agreement with Globalstar on the establishment and operation of ground facilities in Thailand, which was announced in Q1/2022.
Lao Telecommunications Co., Ltd. (LTC), Thaicom’s telecommunication and mobile service provider subsidiary in Lao PDR, reported total mobile subscribers of 2.16 million and maintained its position as the country’s leading mobile network operator. LTC performance recovered from last year due to significant growth in the teenage segment from the “T-Plus” brand, and LTC continuously generated positive operating profits.
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