THCOM Returns to Book Profit in 1Q20 from Higher FX Gain and Lower Depreciation

Thaicom Public Company Limited (THCOM) has reported its 1Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

THCOM announced a net profit of 197 million baht in 1Q20, increased from a net loss of 32 million baht in the same period of last year. The increase was mainly due to the profit from operation, together with the gain from foreign exchange, offsetting with the loss from asset write-off.

The normalized profit from operations at 105 million baht in 1Q20,significantly improved from a net loss of 4 million baht in 1Q19 and a net loss of 271 million baht in 4Q19, due to the decrease of depreciation from Thaicom 5 satellite deorbit and the impairment of other satellites in 2019, and the effective cost management.

The Thaicom 5 satellite was deorbited on 26 February 2020. The effect of revenue loss from the Thaicom 5’s customers which could not be migrated to other satellites under THCOM’s services was estimated around 200 million baht per annum, which was recognized since March 2020 onwards.