Back in black Thaicom upbeat on future

The board of directors on Wednesday passed a resolution to propose payment of a dividend of Bt0.40 per share, pending approval by the company’s shareholders at the annual general meeting late next month, chief executive officer Suphajee Suthumpun said. 

Revenues from sales and services rose to Bt7.26 billion, an increase of 9.7 per cent over the previous year, with satellite operations contributing more than 86 per cent of overall revenues. 

Income was boosted by a 13.8-per-cent increase in revenue from the Thaicom 5 satellite, mainly attributable to increased value-added services offered to clients and continued growth of broadcasting services, and 7.7 per cent growth in income from the iPSTAR broadband satellite due to realisation of full-year revenues from deals signed in 2011, including Softbank, Measat and NBN Co. 

“Our satellite operations are improving continually, and more than 86 per cent of our revenues now come from this sector,” Suphajee said. “With pre-launch sales of Thaicom 6 reaching nearly 40 per cent, the percentage contribution to overall revenues from this sector will grow rapidly when Thaicom 6 is launched later this year, and Thaicom 7 in 2014.” 

A licence was awarded to the company last year to operate the Thaicom 7 satellite. The firm also saw the preservation of the 50.5 degrees east longitude orbital slot for Thailand, and a major breakthrough in the China market with the signing of a framework agreement with China Telecom Satellite and Synertone Communication Corporation for the sale of all iPSTAR bandwidth available over that country – 24 per cent of iPSTAR’a capacity. 

Last month, Cambodia-based telecom operator Mfone, a Shenington subsidiary, filed for insolvency. The Cambodian court is now considering the case. Once resolved, Thaicom will no longer be carrying the losses from Mfone this year. Thaicom owns 51 per cent of Shenington.

According to Trinity Securities, though Thaicom’s profit last year was lower than the brokerage’s expectation, it expects 2013 net profit to be 4.9 times last year’s level. The brighter prospects are partly because it will not have to realise Mfone’s quarterly losses of Bt120 million from the second quarter onward. As well, the iPSTAR business has continued growing. The launch of Thaicom 6 broadcasting satellite in the middle of this year is also expected to support its growth from 2014 onwards.