THCOM: A “Satellite” with No “Light”
THCOM: A "Satellite" with No "Light"
THCOM: A "Satellite" with No "Light"
11 ก.พ. 2563

Following the financial statement yearly 2019 announcement of Thaicom Public Company Limited (THCOM), the revenue from sales of goods and rendering of services was Baht 4,663 million, dropped 22.4% from Baht 6,008 million for 2018, which accounts for around Baht 2,240 million of net loss.  
The statement is now leading all investors a disappointment as the outlook performance has reserved from profit to loss. To look deeper in every business of THCOM, it could be more shock as each one sectors were all encountered a decreased gain.
The satellite and related services revenue fall 21.5% to Baht 4,594 million, divided to 28.9% plunged  of conventional services, the decrease was due mainly to the extension of a long-term contract for a major customer in Thailand, which had been offered a discount to the existing contract, together the churn of digital television channels.  As well as the decline of foreign customer utilization of Thaicom 4 Broadband Satellite, which cut 9.9% compared to the year before.
Internet and media services revenue slumped 46.6% to Baht 122 million because of the sale of Cambodian DTV Network Limited (CDN)
THCOM had the extra expenses in total of Baht 1,818 million and still loss Baht 116 million of profit of investment in joint venture. THCOM also recognized the impairment of satellites and equipment in total of Baht 1,401 million. The deceleration of satellite industry due to the change of personal consumption and high competition had caused THCOM’s average price per unit to decrease.
Moreover, on 17 December 2019, THAICOM-5 satellite experienced temporary technical problems, which has yet to retrieve. In regard to the incident, THCOM had to recognize an impairment of THAICOM-5 at a total amount of Baht 222 million.
Initially, current guesstimate is that THCOM’s turnover would not recover within 2 years because the revenue likely to continuous decelerates as follow reasons:
1) The slowdown on of television industry in Thailand.
2) The difficulty to expand the customer base as the satellite concession is about to end.
3) No progress on the direction of public-private partnership after the end of concession in the 3rd quarter of 2020.
However, at least, the shareholders will receive a dividend payment at ฿0.20/share from THCOM.
 