Shin Satellite Plc (ShinSat) expects revenue from its iPSTAR broadband satellite to account for half of total income from all of its satellites by the end of the year, says vice president for finance Tanadit Charoenchan.

Revenues from the transponder services of all satellites - Thaicom 1, 2 and 3 and iPSTAR - for the second quarter was Bt849 million, down Bt286 million, or 25.2 per cent, from the Bt1.135 billion recorded in the same period last year.

iPSTAR service revenues totalled Bt215 million in the second quarter, down Bt320 million, or 59.81 per cent, from the Bt535 million recorded in the same period last year and down Bt293 million, or 57.7 per cent, on quarter.

But Tanadit predicted iPSTAR's contribution would increase to 50 per cent of transponder service revenue by the end of the year.

The company sold only 2,788 iPSTAR user terminals in the second quarter, compared with 11,134 units in the previous quarter and 8,136 units during the same period last year. Customers needed time to deploy the equipment they bought in the first quarter before ordering new kit, and this situation should correct itself in the third quarter.

ShinSat's consolidated second-quarter revenues were Bt1.76 billion, down Bt1 billion, or 36.3 per cent, on year. It also posted a net loss of Bt34 million, a steady improvement over its Bt58-million loss in the previous quarter.

The company also gained Bt146 million from foreign exchange in the second quarter.

This represented a massive increase from Bt35 million on the year, due to the baht's appreciation.

The company's share of net income from investments was Bt20 million, up from Bt10 million in the same period last year.

Its consolidated expenses amounted to Bt1.66 billion, down Bt77 million, or 4.4 per cent, on year.

ShinSat, which is 41-per-cent owned by Thailand's largest telecom holding company, Shin Corp Plc, operates five satellites, including Thaicom 5, which was launched into orbit in May.

Shin Corp is in turn majority owned by Singapore's Temasek Holdings.

Usanee Mongkolporn

The Nation