Indebted TT&T’s net loss narrows; fixed line revenues continue to slide

2 Mar 2012

TT&T, the Thai provincial fixed line operator currently undergoing a debt restructuring programme, has posted a narrowing in its annual net loss to THB2.68 billion (USD91 million) in 2011, compared to THB12.22 billion the previous year. In its filing to Thailand’s stock exchange (SET), the telco said that total operating revenues fell from THB3.88 billion in 2010 to THB2.64 billion in 2011, as revenue from telephone services under TT&T’s original build-transfer-operate (BTO) contract – reported as ‘Telephone Services (Expansion Joint-Investment Agreement) – fell by 22% (or THB691 million). Furthermore, its subsidiary TT&T Subscriber Services Company Limited (TTTSS, which was set up to operate outside of the BTO framework) did not submit its financial statement to the company (although no explanation was given) – resulting in a 98% (THB515 million) decrease in reported revenue from TT&T’s ‘Telecommunication Service’ segment. In addition, further revenue was lost due to an ongoing dispute relating to estranged operating partner and former subsidiary Triple T Broadband (TTTB, now owned by TT&T’s once-owner Jasmine International), as TT&T reports in its statement that: ‘a subsidiary as the service provider cancelled the service contracts of data communication service, internet gateway service, and international private leased circuit service… the cancellation happened during the period when the Company on behalf of the Plan Administrator [of the debt restructuring process] could not take control, perform investigation, [nor] manage operation and assets of the subsidiary.’ Reported operating revenues exclude a gain from debt restructuring of THB3.09 billion in 2011 (balancing a loss from impairment of THB3.05 billion), as well as the previous year’s THB861 million currency exchange gain: including these and other finance adjustments, total revenues at TT&T were THB5.74 billion in 2011, up from THB4.75 billion in 2010.

TeleGeography’s GlobalComms Database notes that associated companies TT&T and TTTB signed an agreement in May 2006, binding until 26 October 2018, obliging TTTB to provide broadband network services to TT&T’s TTTSS subsidiary, which agreed to pay TTTB monthly service fees for the privilege, in return for TTTB paying fees to TT&T for leasing fixed infrastructure. As part of the cash-strapped provincial telco’s restructuring, TT&T’s ‘Maxnet’ DSL customers were transferred to the ‘3BB Broadband’ ADSL service launched in 2009 by TTTB, and the Maxnet brand was discontinued at the end of that year, while a continuation of the associate agreement allowed 3BB to be marketed by TTTSS (in provincial areas) as well as TTTB in Bangkok and its surrounding areas. However, as TT&T entered its debt rehabilitation it phased out broadband marketing, while TTTB expanded its 3BB broadband/triple-play services to new areas. In May 2011 TT&T revealed a plan to relaunch in the fixed broadband segment by finding a new strategic partner; it hoped to resume marketing high speed services in earnest by the end of 2011, but no further announcements have yet followed.

TTTB earned revenues of THB6.4 billion for full-year 2011, parent Jasmine International reported to the SET.

Thailand, Triple T Broadband (3BB)