Shin Satellite Q3 Results Discussion and AnalysisWednesday, November 14th, 2007
Shin Satellite reported a net profit of Baht 3,195 million for the first nine months of 2007, up Baht 4,034 million over a net loss of Baht 839 million in the same period last year. In this quarter, its net profit was Baht 3,143 million, an increase of Baht 3,890 million over a net loss of Baht 747 million in Q3/2006.
Internet and media business
In this quarter, the Company’s subsidiary, Shin Broadband Internet (Thailand) Co., Ltd. (“SBI”) has launched new service namely HD Cinema, the High Definition Television (HDTV) service which provides video-on-demand using the THAICOM 4 platform by monthly transmitting High Definition Television programs to subscriber terminals instead of previous programs. Subscribers can choose to view any program they need at any time.
Revenue from the Internet access and media business in Q3/2007 was Baht 62 million, an increase of Baht 43 million or 226.3% from Baht 19 million in Q3/2006, and an increase of Baht 19 million or 44.2% from Baht 43 million in Q2/2007. This was due to an increase in revenue from DTV sales first incurred in Q1/2007 resulting from a steady growth in DTV sales. As at the end of Q3/2007, DTV sales volume was 50,326 sets. Also, revenue from HDTV service, providing much clearer pictures and higher solution than traditional format with video-on-demand technology using the THAICOM 4 platform, was first incurred in this quarter.
Cost relating to the Internet access and media business in Q3/2007 was Baht 51 million, an increase of Baht 32 million or 168.4% from Baht 19 million in Q3/2006, because of increases in the cost of DTV sales and High-definition television (HDTV) service. Cost relating to the Internet access and media business in Q3/2007 decreased by Baht 4 million or 7.3% from Baht 55 million in the previous quarter due to a decrease in cost of Internet service of LTC and CamShin which was recorded according to new investment proportion offset by a rise in cost of DTV sales corresponding to a rise in the sales volume.
More: Earnings Releases