TT&T’s voice revenues continue fall; broadband relaunch has low impact so far

4 Mar 2014

Thai provincial telco TT&T has reported its full-year 2013 financial results to the Stock Exchange of Thailand (SET). Total revenue (excluding gains from foreign exchange and debt restructuring) of the company and its subsidiaries in 2013 was THB2.119 billion (USD64.97 million), down from THB2.347 billion in 2012. Over 94% of revenues were from PSTN fixed voice services operated under TT&T’s build-transfer-operate (BTO) agreement with state-owned telco TOT, but this turnover – reported as ‘Revenue from Telephone Services (Expansion Joint-Investment Agreement)’ – fell by 10% (or THB217 million) in 2013 to THB2.0 billion, as a result of ‘weakening of voice service revenue, and fault reception & dropwire maintenance income which was consistent with decreasing tendency of landline use’. Outside of TT&T’s BTO operations, revenue classed as ‘Telecommunication Service’ increased from a small base by THB12 million or 236% (to approximately THB17 million), on an increase in broadband internet revenue, while ‘Sales and Services’ revenue increased by THB7 million or 10% to approximately THB70 million. TeleGeography’s GlobalComms Database notes that TT&T relaunched itself in the consumer broadband market in Q1 2013 under the ‘T Plus’ brand, having previously been forced to cut its operations back to concentrate on its core wireline voice services for financial reasons, although the new services appear to have had a low-key impact to date.

In 2013 TT&T’s total operating expenses (before loss on foreign exchange rate, doubtful debt, interest expense, and corporate income tax) were THB2.073 billion, down from THB2.978 billion in 2012. The group also swung to an operating profit (before loss from debt restructuring, financial cost, and gain/loss on foreign exchange) of THB36 million in 2013, compared to an operating loss of THB655 million in 2012, which mainly resulted from a decrease in depreciation and amortisation due to asset impairment. The company booked net loss of THB883 million in 2013, although this was narrowed from net loss of THB7.655 billion in 2012 (and 2011’s loss of THB2.679 billion).

Thailand, TT&T