May 12, 2011

THAICOM Public Company Limited announced its first quarter operating results as at 31 March.  The company's total sales and service income for the first quarter ending March 31, 2011 stood at Baht 1.57 billion, a decrease of 214 million Baht compared to the same period last year due in part to the decrease in revenues year-on-year of the company's telephone business.  However, on a quarter-to-quarter basis, revenues for telephone services rose by 2.6%.  The company's satellite and related businesses, posted revenues of Baht 1.141 billion, a decrease of 4.8% compared to the same period last year. However, the company gained net profits from its investments in its subsidiaries, realizing a year-on-year increase of 22.2%.

Satellite and Related Businesses

Revenues from IPSTAR services stood at Baht 579 million, an increase of Baht 18 million or 3.2% from the first quarter of 2010.  This increase was mainly due to increased revenues from IPSTAR bandwidth services, which rose by Baht 140 million, or 40.3% year-on-year.  These revenues resulted from increased bandwidth usage from India, Japan, and Australia.  Revenues from THAICOM 2 and 5 satellites and related services were reported at Baht 562 million. As of the end of the first quarter of 2011, THAICOM has 374 television channels on the THAICOM 5 platform.

Telephone Businesses

Revenue from the telephone business services in Cambodia (Mfone Co., Ltd.) and Laos (Lao Telecommunications Co., Ltd.) was Baht 321 million, a decrease of Baht 131 million or 29.0% compared to the same period last year. However, revenues from telephone services increased by Baht 8 million or 2.6% when compared to last quarter. As of the end of the first quarter of 2011, the total number of mobile subscribers of LTC reached 1,632,629 subscribers, an increase of 22.9% compared to the same period of 2010, and LTC has maintained its number one position in the mobile market in Laos. Mfone has a total of 698,282 mobile subscribers, an increase of 4.9% from the same period of 2010. The reduction of Mfone’s revenue was mainly due to the Baht appreciation, which affected its earnings revenue which is calculated in US dollars. In addition, LTC has announced to pay a dividend of US$ 15 million form its operating results of 2010.

Internet and Media Businesses

Total revenues in the Internet access and media businesses were Baht 108 million, a decrease of Baht 26 million or 19.4% from Baht 134 million in the first quarter of 2010. However, at the end of the first quarter, total sales of DTV dish sets in Thailand, Cambodia, and Laos were 1,000,961 units, an increase of 339,243 units compared to the same period of 2010. The Company realized returns on its investment in CSL of Baht 44 million, an increase of Baht 8 million or 22.2% over the same period of last year. CS LOXINFO Plc. (“CSL”) had an increase of 21% in net profit due to the continued growth of internet services, voice data services and valued added services on mobile.

Consolidated Financial Statement 

According to THAICOM’s consolidated financial statement, the Company reported an operating net cash flow of Baht 730 million and net cash flow for investment of Baht 186 million. As of March 31, 2011, the Company’s cash earnings and equivalent to cash was Baht 1.7 billion. The Company recorded a loss from the exchange rate of Baht 14 million with a net loss of Baht 167 million.  THAICOM’s Debt-to-Equity Ratio was 0.60, a slight increase from 0.58 for 2010.

On March 4, 2011, India's Income Tax Appellate Tribunal ("ITAT") ruled that the income of THAICOM Plc. from the transponder leasing service in India should not be treated as royalties, as the Company has not established permanent offices in India. Therefore the company is not subject to pay tax in that country. THAICOM is now in the process of obtaining the return of the deposit and withholding tax from the Revenue Department of India. However, the Company expects that the Revenue Department of India will continue to appeal the decision.

On May 6, 2011, THAICOM announced that its subsidiary, IPSTAR Australia Pty Ltd. (“IPA”), signed a contract worth AUD 100 million with NBN Co., Ltd. ("NBN Co") under the Australian Government to provide satellite services for the National Broadband Network. The Contract period is 5 years with an option to extend.