Advanced Info Service (AIS) posted net profit of Bt4.879 billion in the second quarter, and increased 16.2 per cent year on year, due to improving revenue and data revenue growth.
Its net profit in the first half stood at Bt9.85 billion versus Bt8.76 billion over the same period last year.
According to its filing to the Stock Exchange of Thailand, it revised upward its telecom service revenue forecast this year, excluding interconnection revenue, to 5-per-cent growth versus the previous 3-per-cent growth forecast. This reflected both a general solid economic recovery and a strong momentum of data growth.
Capital expenditure guidance remains at Bt6.2 billion versus Bt9.9 billion last year.
AIS voice revenue was Bt16.322 billion in the quarter, an increase of 2.3 per cent year on year, while its non-voice revenue was Bt3.643 billion, surging 35.7 per cent year on year.
The AIS board of directors meeting on Friday also approved an interim dividend payment for the first six-month period of 2010 at the rate of Bt3 per share from registered and paid-up capital of approximately 2,967.39 million shares, totalling approximately Bt8.902 billion.
The share registration book closing date to determine the right to receive dividends will be on August 20, and the dividend payment date will be on September 3.
AIS currently has around 30 million subscribers. It is around 42 per cent owned by Shin Corp.
AIS is among three telecom operators expected to bid for a 2.1GHz spectrum license from the National Telecommunications Commission to provide the 3G wireless broadband service. The auction will take place in the fourth week of September.
In a separate matter, TRIS Rating (Thailand), has affirmed issue ratings for Thaicom at "BBB+" with "stable" outlook, which reflects Thaicom's market strength as the sole satellite communications service provider in Thailand, the business value of the telecom investment portfolio, and prospective broadband satellite results in the domestic and Australian markets.
Shin Corp owns around 41 per cent of Thaicom.
The ratings are partially offset by intense competition in overseas markets, high operating and regulatory risks inherent in the satellite industry, and uncertainty surrounding the prospect of broadband satellite in key foreign markets.
The unresolved regulatory disputes concerning the conventional satellite business could negatively affect the overall operating performance and business profile of the company.
The "stable" outlook reflects the expectation that it will continue to maintain its market strengths and generate stable cash flows from conventional satellite services and telecom businesses in Indochina. The delay of iPSTAR's success in the overseas market remains a key negative factor to the ratings.
Thaicom operates three satellites, Thaicom 2 and 5 conventional satellites and iPSTAR broadband satellite.
Of total revenue in the first quarter of Bt1.784 billion, the conventional satellites contributed about 36 per cent and iPSTAR around 31 per cent. Its telecom business contributed a third of total revenue.
According to TRIS Rating, Thaicom's favourable position in the domestic and overseas markets has stabilised operating cash flow. The ratings factor in the expectation that its parent Shin Corp will continue to provide the necessary strategic support so as to help enhance the company's overall business profile.
The ratings also take into consideration the growing iPSTAR business. The utilisation of iPSTAR has so far been derived from providing service in Australia and Thailand. The execution of commercialising iPSTAR in the Indian market, expected during the third quarter of 2010, will be one supportive factor to the ratings.
Construction of the iPSTAR gateway in Japan was completed in mid-2009. A Japanese telecom customer signed an agreement to buy bulk bandwidth from iPSTAR in Japan starting from April 1 this year. Thus, the Japanese market is another key revenue contributor in the future.
However, iPSTAR's prospects are constrained by uncertainty surrounding the extent and timing of revenue from the Chinese market. Further evidence is required to prove the competitiveness of iPSTAR in the Chinese telecom market. Success will depend to a large extent on management's ability to offer attractive solution packages for a strategic partner.