Thaicom, Thailand’s first satellite operator has announced its financial results for the second quarter ended June 30th 2019.
Thaicom reported a net profit decrease compared to the previous quarter and the same quarter of last year due to the recognition of several extra expenses. Thaicom reported revenue from sales and services for Q2/2019 of THB 1,217 million (€35.2m) —down by 18.6 per cent from Q2/2018 and down by 6.6 per cent from Q1/2019—as a result of reduced satellite utilisation and special price adjustment for a major customer.
The company’s net loss for Q2/2019 was THB 135 million resulting from extra expenses of THB 137 million including foreign exchange loss, additional recognition of past service cost (employee compensation) in accordance with Thailand’s Labor Protection Act (No. 7) B.E. 2562, and the writing-off of deferred tax asset. The company has normalized net profit excluding the impacts of loss from such extra expenses of THB 2 million.
The combined utilization rate of the company’s conventional satellites (Thaicom 5, 6, 7 and 8) was 53 per cent and remained at the same level as at the end of Q1/2019. For Thaicom 4, the company’s broadband satellite, the utilisation rate was 24 per cent, down from 31 per cent as at the end of Q1/2019.
Anant Kaewruamvongs, CEO, commented: “The company has been focusing on effective cost management to offset shrinking revenue. Regarding the investment in new satellites, the company is in the process of performing a feasibility study to review the possibility of using foreign satellite licenses, while simultaneously pursuing licenses from the Thai Government. We strongly believe that we can extend our know-how in satellite marketing and service operation to develop an effective public-private partnership for the future of the Thai satellite industry. In addition, the company has expanded its business to adjacent business areas in order to diversify and reduce the reliance on its satellite business. With Nava, the company provides a maritime service platform for high-speed broadband connectivity and with value-added services. At present, 104 ships are in operation including backlog.”