Jasmine goes full throttle with broadband effort
Written by Writer on Tuesday, November 11th, 2008
TELECOMMUNICATIONS / Jasmine goes full throttle with broadband effort
SRISAMORN PHOOSUPHANUSORN
Jasmine International Plc is bullish on its broadband prospects next year, aiming to tap more into its own fixed-line network and content resources to provide integrated broadband-based services.
The integrated communications service provider plans to merge the independent content and publishing unit, Mono Group, under the umbrella of Jasmine International next year.
It also plans to make its own WiFi-enabled mobile handsets and WiFi-enabled laptop computers next year to accommodate its self-developed content and applications.
“We are now on the right track with the strategy to focus on our core broadband-related businesses,” said CEO Pete Bodharamik.
Despite the deteriorating economy, he said Jasmine expected to see 5.5 billion baht in revenue this year, up from 4.6 billion last year, helped by high growth in broadband services.
Jasmine reported a third-quarter net profit of 193.45 million baht, compared with 3.12 million in the same period last year. However, it had a nine-month net loss of 1.41 billion baht (0.2 baht a share), compared with a profit of 9.14 million (0.01 baht a share) a year earlier.
The nine-month loss reflected an impairment charge of 1.9 billion baht booked in the second quarter for the company’s investment in the fixed-line telephone provider TT&T Plc.
“Our revenue is expected to reach seven billion baht in 2009 with net profit of 800 million baht, to be fuelled by new facets of super high-speed broadband service and mobile content and applications,” Mr Pete said.
Jasmine had allocated 400 million baht from its unappropriated retained earnings for dividend payments this year, or five satang per share.
Mr Pete attributed the group’s strong performance to its management restructuring, operational streamlining, lower broadband bandwidth rental costs and the right strategy.
He said Triple T Broadband, its Bangkok broadband internet arm, planned to introduce a “super-high speed broadband internet” service next year, faster than six megabits per second.
The company plans to launch internet protocol television (IPTV) services next year, with a minimum monthly service rate of 190 baht a month for 30 free channels, video streaming, video and karaoke on demand, interactive content and internet browsing.
Mr Pete said the company expected a total of 370,000 broadband subscribers by the end of this year, contributing almost 40% to its total earnings.
The number of its broadband customers would increase to 670,000 next year, generating half of the total revenue.
“Our broadband customer base is expected to top one million by 2010, out of the projected three million broadband users. The proportion of our broadband revenue would accounted for more than 70% of total earnings.”
The average revenue per broadband user is 600 baht compared to 200 baht of TT&T’s average fixed-line user.
Mr Pete said Jasmine planned to spend two billion baht over the next two years to expand its broadband network, including 100 million baht each on WiFi and WiMax technology. About 1.7 billion baht, slated for 300,000 broadband ports in Bangkok, will be lent by supplier Huawei Technologies, to be repaid in 42 months.
He said Jasmine planned to increase its holding in TT&T to 40% from 30% as part of TT&T’s 21-billion-baht rehabilitation plan.
Jasmine shares (JAS) closed yesterday on the Stock Exchange of Thailand at 0.45 baht, down one satang, in trade worth 5.66 million baht.
Bangkok Post
Tuesday November 11, 2008
