TOT expects THB10bn operating loss this year

18 Jun 2014

Thai state-owned telco TOT expects operating losses of THB10 billion (USD308 million) in full-year 2014, having posted a first-quarter operating loss of THB1.7 billion, partly as a result of the freezing of its overdue mobile and fixed network investment projects since the dissolution of parliament in December 2013, the Bangkok Post reports. TOT posted revenue from its fixed and mobile operations of around THB20 billion in full-year 2013, slightly lower than its total expenditure, while staff costs for its 22,000 employees accounted for 48% of costs. Furthermore, since the end of 2013 TOT and sister telco CAT have been mandated to transfer all revenue from remaining build-transfer-operate (BTO) concessions directly to the state, but despite this, TOT must still pay to maintain some infrastructure covered by the BTO agreements, with an annual value of THB10 billion, according to the report. In TOT’s case the BTO concessions are with AIS (mobile, expiring 2015), True Corp (fixed, expiring 2018) and TT&T (fixed, expiring 2019).

Thailand, TOT