Samart eyes TOT's second 3G rollout
Samart Corp is keen to bid in connection with TOT's planned development of the second phase of its 3G network roll-out, which will cost about Bt30 billion.
The state agency, whose new board of directors was appointed last week, is expected to go ahead with the plan to roll out around 10,000 3G base stations in the second phase next year. The board will convene this week to select a chairman.
Last year, the Samart-Loxley consortium won a deal worth Bt15.9 billion from TOT to build up the 3G network in the first phase, totalling 5,320 base-station sites. Samart’s share of the contract amounts to Bt10 billion.
Samart president Watchai Vilailuck said the consortium now expected to finish the rolling out of only 4,000 sites by year-end, with the remainder being completed in the first half of next year. As present, 3,500 base stations have been set up.
The company, which has to date generated revenue of Bt6 billion from the project, had expected to realise the residual Bt4 billion this year. However, given the delayed completion of the roll-out, only an additional Bt2 billion can now be achieved by December 31, he said.
The Samart group targeted consolidated revenue of Bt18 billion this year. As of the first nine months, the group had consolidated income of about Bt12.13 billion and made a net profit of Bt785 million. The profit was 14 per cent higher than in the same period last year.
Samart posted third-quarter consolidated revenue of nearly Bt4.11 billion and net earnings of Bt284 million, compared Bt6.24 billion and Bt259 million, respectively, over the same period last year.
Acquisition approved
In a separate matter, Samart’s board has approved wholly owned subsidiary Samart U-Trans’ investment of more than Bt300 million in TEDA, which will give the unit an 80-per-cent stake in the company.
TEDA’s business comprises the design and construction of high-voltage substation, transmission and distribution lines as well as mechanical and electrical installation services. It has registered capital of Bt262.25 million at a par value of B10 per share.
TEDA offers high growth potential, Watchai said, pointing to the fact that as Thailand purchases electricity from neighbouring countries, there is a need to construct power transmission lines and related networks.
Meanwhile, Samart’s information and communications technology business, led by Samart Telcoms (Samtel), is still a major revenue driver.
Samtel posted third-quarter consolidated revenue and net profit of Bt1.92 billion and Bt237.4 million, respectively, compared to Bt3.62 billion and Bt263.3 million over the same period last year.
Samtel has a backlog of around Bt10.54 billion and is aiming to bid for projects worth Bt10 billion in the current quarter.
Its multimedia and handset business, Samart i-Mobile, generated revenue of almost Bt1.62 billion and made a net profit of Bt35 million in the third quarter. It has focused more on selling its own-brand smart phones in order to boost the unit’s profit margin.
Samart’s call-centre service business, OneToOne Contacts, is keen to explore business opportunities in Myanmar, Laos and Cambodia, Watchai said.
