TT&T’s broadband growth fails to halt losses widening

20 Aug 2008

Thai fixed line telco TT&T has reported consolidated group revenue for the second quarter of 2008 of THB1.939 billion (USD57.5 million), up by 10.3% from THB1.758 billion in the second quarter of 2007, and by 6.9% from THB1.814 billion in 1Q 2008. The increase in turnover was mainly attributed to growth in its broadband internet subscriber base to more than 300,000 at the end of June 2008, up by approximately 100,000 year-on-year. However, total expenses in April-June 2008 reached THB2.519 billion, up 8.6% year-on-year and 6.4% quarter-on-quarter, mainly as a result of upgrading its networks to support 500,000 broadband users, and quarterly operating losses (excluding foreign exchange effects) widened to THB580 million, compared to THB562 million in the same period of 2007, and THB554 million in the first quarter of 2008. Operating losses were driven upwards by a decrease in voice telephony revenue by THB99 million year-on-year in the second quarter, which was only partially offset by a rise in revenue from broadband services. The company recorded a three-month net operating loss of THB1.081 billion after taking a THB501 million exchange rate hit due to the depreciation of the Baht. TT&T aims to reach a target of 500,000 broadband subscribers by mid-2009.

Thailand, Triple T Broadband (3BB)