Shin reports 60% plunge in profits

01 Mar 2007
00:00

(Bangkok Post via NewsEdge) Thailand's Shin reported a sharp 60% decline in 2006 profits, due largely to weaker earnings from core units AIS, Shin Satellite and iTV.

The company, now controlled by Singapore's Temasek Holdings, reported a consolidated net profit of 3.4 billion baht ($99.3 million), down 60.47 % from the year before.
Revenues rose slightly to 23.45 billion baht ($685 milllion) from 22.08 billion baht ($642 million) in 2005.

Losses were attributed to a 1.1-billion-baht ($32 million) charge for investment losses on its 53% stake in the ailing broadcaster iTV, which faces possible bankruptcy due to massive penalties imposed by the state for concession violations.

Both AIS and Shin Satellite are also facing increased regulatory scrutiny and legal uncertainties over their concessions and shareholding structures.

Earnings from Shin's subsidiaries, joint ventures and associated firms fell 48% to 4.5 billion baht ($119 million), with earnings from the mobile flagship AIS down 13.4% and Shin Satellite down 99.5%.

The consumer-finance company Capital OK, 99.9% held by Shin since last October, posted a 1.5-billion-baht ($44 million) loss for last year, compared with a loss of 288 million baht ($8 million) in 2005.

Shin operations have taken a sharp beating since the January 2006 buyout by Temasek. The massive buyout sparked sharp public protests against Shin founder and then-prime minister Thaksin Shinawatra about alleged conflicts of interest and ultimately contributed to the September 19, 2006 coup.

© 2007 Bangkok Post

© 2007 Dialog, a Thomson business. All rights reserved

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