Samart Telecoms' 2014 revenue contribution to group cut as political impasse likely to slow state contracts
January 11, 2014 00:00
By Usanee Mongkolporn
Samart Corp group has lowered the target for the revenue contribution by its ICT solutions provider Samart Telcoms to between 30 and 40 per cent this year from the 50 per cent achieved last year, in a move to reduce its heavy reliance on state projects in
Samart president Watchai Vilailuck yesterday said that as a result of the decision, the parent had adjusted the revenue contribution to the group by another subsidiary – mobile device and multimedia content provider Samart i-Mobile (SIM) – to 40 per cent, from 30 per cent last year.
Samart Telcoms, which mainly bids for state projects, has set a 15-per-cent revenue growth target this year to Bt11 billion. Its current backlog of contracts is worth Bt8 billion.
Watchai said that while the political situation meant a likely delay in the launch of a number of new projects by the government, Samart Telcoms would not be seriously affected as it continued to realise revenues from existing projects.
It still expects to clinch new projects this year worth at least Bt20 billion, he added.
Samart Telcoms has also proposed bids to install digital-TV broadcasting networks for the digital broadcasting licence holders: Thai Public Broadcasting Service, MCOT, the Public Relations Department and Royal Thai Army Radio and Television.
I-Sport – a joint venture between Samart and Siam Sport Syndicate – will also produce sports content to serve the digital-TV licence holders after failing to grab a standard-definition digital-TV news channel licence in the auction of 24 commercial channel licences last month.
Samart group has set a consolidated-revenue growth target of 30 per cent this year to more than Bt30 billion, and expects its annual profit to exceed Bt2 billion for the first time.
SIM, meanwhile, has targeted revenue growth of 20 per cent to Bt13 billion, thanks to the continued demand for smart phones.
The company’s sales target for its in-house I-Mobile brand devices is 4 million units, of which 2.8 million will be smart phones.
Another Samart subsidiary, Samart Engineering, expects to witness business growth from the sales of digital-TV set-top boxes this year. The unit targets sales of 1.5 million to 2 million units during the course of the year.