Nation (16 November 2007)
Shin Corp, Thailand's largest telecom holdings firm, posted a consolidated net profit of Bt754 million in the third quarter, a decline from Bt855 million in the same period last year.
The reduced profit was due to lower contributions from its flagship mobile-phone division and losses from consumer-finance business.
Shin holdings include the largest cellular operator Advanced Info Service and Shin Satellite. Cedar Holdings and Aspen Holdings, which are part of Singapore's state investment arm Temasek Holdings, own around 54 per cent and 41 per cent respectively in Shin.
Shin's share price yesterday closed unchanged at Bt26.25.
According to Shin's filing to the Stock Exchange of Thailand yesterday, revenue from the media business dropped when the free TV operator iTV ceased operations after its concession was revoked in March 2007.
In the third quarter, the share of net profit contribution from AIS was Bt1.477 billion, a slight drop from Bt1.597 billion in the second quarter and Bt1.561 billion in the third quarter of last year.
One foreign brokerage house analyst said that AIS' financial performance in the last quarter was likely to be the same as in the third. While the last quarter is usually a season of high call traffic, AIS will also spend more heavily on marketing campaigns.
AIS president Wichian Mektrakarn said the company expected to post a better performance in the last quarter and might not have to launch an aggressive campaign to woo additional subscribers.
AIS, which has over 23 million subscribers, posted a net profit of Bt3.512 billion in the third quarter, a fall of 3.9 per cent year on year and 4.1 per cent on a quarterly basis. The net profit contribution from ShinSat was Bt1.302 billion, compared to a loss of Bt33 million in the second quarter this year and a loss of Bt307 million in the third quarter last year.
In the third quarter, ShinSat made a consolidated net profit of Bt3.143 billion, an increase of Bt3.890 billion over a net loss of Bt747 million over the same period last year.
ShinSat's revenues for the third quarter were Bt6.879 billion, an increase of 280 per cent over the same period last year, due to a gain of Bt5.127 billion on the sale of its 49-per-cent share in its overseas telecom holding Shenington to Asia Mobile Holdings in July. The net loss from the consumer finance provider Capital OK stood at Bt1.878 billion, a sharp rise from Bt549 million in the second quarter this year and Bt373 million in the third quarter last year.
There was an increase in the allowance for bad debts following a change of the re-estimation of the allowance for doubtful accounts in the amount of Bt1.366 billion.
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