Profits, revenues decline at CAT

28 Jul 2006

Revenues and net income declined at CAT Telecom over the first half of the year, due to lower rates and higher fees, its deputy president said yesterday. The state-run telco reported a net profit of THB2.17 billion (USD57 million), down from THB2.67 billion in the same period of 2005, on turnover of THB14.7 billion (THB14.8 billion). Fees paid to the National Telecommunications Commission (NTC) were among the reasons for the higher expenditures, said Pisarn Jorpokaudom. However, Mr Pisarn said CAT looked likely to meet its 2006 revenue target of THB33 billion, which would be up from THB30 billion last year. Most of CAT Telecom’s revenue in the first half came from its international voice services (36%), concession fees (31%), data transmission and internet (23%), and wireless business (7%). Due to increasing competition from mobile operators and IP-based providers, CAT was forced to lower its charges for international calls, reducing its revenues in the process. However, its data transmission business is expected to offset the lost earnings. CAT is preparing to launch its CDMA2000 1x cellular service in 51 provinces in January 2007, and is currently in negotiations to obtain the cheapest possible handsets. CAT’s chief finance officer in charge of the project, Jirayuth Rungsrithong, said yesterday that CAT would soft launch the new service in October and go fully commercial in January when 1,600 1x base stations in 51 provinces are expected to be in place.

Thailand, CAT Telecom