TT&T posts USD8.3 million 1Q profit following losses

17 May 2006

Thailand’s biggest provincial telco TT&T yesterday announced a first quarter net profit of THB318 million (USD8.3 million), compared with losses of THB100 million in the same period last year and a THB350 million loss in the previous quarter. First quarter revenue was THB1.671 billion, down by 3% year-on-year from THB1.725 billion, and by 5% quarter-on-quarter from THB1.759 billion. The profit was attributed to a THB600 million foreign exchange gain. Excluding this item, quarterly operating profit was THB33 million, down from THB174 million year-on-year, but up from a loss of THB47 million in 4Q05. Of the total revenue, 49% came from fixed line business, 13% from public payphone operations, 12% from internet services and the remainder from equipment and IP telephony businesses. The contribution of fixed line services to TT&T’s total turnover has significantly declined, from 80%, or THB6 billion, in 2000 to less than 50% (THB3 billion) last year, largely due to tough competition from mobile operators.

TT&T posted an annual loss of THB1.7 billion on revenue of THB6.7 billion in 2005. It has debts of THB10 billion and accumulated losses of THB16 billion. The operator has projected revenues of THB7.3 billion in 2006, including an expected new revenue stream of THB500 million from the planned expansion of its broadband network to serve 300,000 subscribers, a project expected to be completed in the fourth quarter.

Thailand, Triple T Broadband (3BB)