Thaicom increases profits in Q1
May 9, 2023
Satellite operator Thaicom has reported its financial results Q1 2023.
Thaicom’s net profit attributable to owner of the Company for the quarter was Baht 90 million (€2.44m), an increase from Q4 2022 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 owner of the Company for Q1 2023 increased by 77 per cent compared to that of Q1 2022 (YoY) of Baht 51 million, due mainly to the increase of sales and service revenue.
The Company reported a core profit1 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 realised foreign exchange losses and a decrease in selling and administrative expenses. Compared to Q1 2022 (YoY), in which the core profit, Q1 2023’s core profit1 increased by 48.3 per cent 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 per cent from Baht 691 million, driven by higher conventional satellite service revenue (Thaicom 7 & Thaicom 8 Satellites), as well as the recognition of income from ground station (Gateway) management fees from Globalstar and other consulting fees.
Globalstar is a LEO satellite operator and a 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 THCOM 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 H2 2023, where the Company and Globalstar will initially commercialise the satellite-based tracking system to safeguard tourists; the tracking device installed with the life jacket. In an emergency, the sensor will identify the coordinates of the tourist and alert instantly to the government authority responsible.
On April 7th, THCOM’s Shareholders Meeting approved the investment in a satellite project for the orbital slot of 119.5 degrees East as a priority with total investment budget of no more than Baht 15,203 million. Currently, the Company is sourcing for the qualified satellite manufacturers, as well as securing presale capacity on the new satellite.
As at the end of Q1 2023, THCOM’s conventional satellites providing services under telecommunication licences were Thaicom 7 and Thaicom 8. The overall utilization rate was at 55 per cent increased from 5 per cent at the end of 2022.
As at the end of Q1 2023, Lao Telecommunications Public Company (LTC) and TPLUS Digital Company Limited (TPLUS) reported the consolidated mobile subscribers of 2.44 million, increasing in comparison with the subscribers as at the end of 2022 of 2.32 million.