iTV announced on Monday its net loss for 2006 at Bt1.78 billion, or Bt1.48 per share, fall by 362.5 per cent from a net profit of Bt679.11 million or Bt0.56 per share in 2005.

"The huge net loss resulted mainly from the accounting recognition of the accrued differences in concession fee payable for the period of 2004-2006, and the penalty interest charges of the difference in concession fee payment. All these amounted to a total sum of Bt2.51 million," iTV said in its statement submitted to the SET Monday.

The SP, or suspension, sign has been put on the stock since the second trading session yesterday to enable shareholders and investors to have sufficient time to scrutinise the auditor's report, the SET said. However, the SET will allow the trading of iTV and post an NP, or notice pending sign effective from the first trading session tomorrow until the company submit its amended financial statements for the Securities and Exchange Commission concludes that it will not be needed to amend the financial statements.

In 2006, iTV reported Bt2.16 billion in total revenues, drop by 7.9 per cent from 2005. The company said the accounting recognition of the accrued differences in concession fee was due to the ruling of the Supreme Administrative Court on December 13, 2006 which ruled to uphold the judgement of the Central Administrative Court that effected on revocation of the arbitration awarded dated January 30, 2004. As a consequence of that ruling, the company has to comply with the previous terms and conditions as specified in the concession agreement.

However, the company said it is in the process of negotiating the matter and proposing several alternatives to the Office of the Permanent Secretary, the Prime Minister's Office. Due to the fact that the company does not have sufficient cash in hand to repay all these payment charges.

ITV said in its statement that the advertising expenditure on television industry in 2006 grew by 6.5 per cent from 2005. The company still retained its industrial third position with a 17.3 per cent control of the TV advertising spending market share, showing a decrease from 18.5 per cent in 2005. The drop resulted from intensified industrial competition in pricing, program schedule adjustments, which aimed to attract the advertisement purchasers' interest.

In addition, external factors namely the uncertainty in political environment and a general economic slowdown, further posed adverse impacts to the spending decisions of the Company's advertisement clients.

The Nation