Intouch Holdings Public Company Limited (INTUCH) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;
INTUCH reported a net profit of 11,047 million baht in 2020, decreased 0.32% compared to a net profit of 11,083 million baht in 2019. The decrease was mainly due to a lower contribution from the local wireless telecommunication business, as a result of a drop in revenue, a rise in depreciation & amortization and a foreign exchange loss, although this was partially offset by a decrease in SG&A.
However, the contribution from the satellite & international businesses rose YoY, as a result of the share of compensation included in other income totaling 621 million baht. Moreover, no satellite impairment losses were recorded as in 2019. However, if these items were excluded, the normalized net profit in 2020 would have decreased by 9% from 2019, mainly due to a lower contribution from the local wireless telecommunication business, although this was partially offset by an increase in the contribution from the satellite & international businesses.
In 2020, profit contributions from ADVANC drop by 10% to 11,108 million baht. This was due to the adverse impact of the economic slowdown arising from the COVID-19 situation, lower revenue from the tourist segment, and intense price competition as all the operators tried to retain their customers.
ADVANC’s cost of services remained flat YoY as it continued to expand its network, while marketing and administrative expenses dropped. However, THAICOM contributed a net profit of 211 million baht, compared to a net loss of 926 million baht in the previous year, mainly due to the recognition of impairment losses on satellites in 2019 and compensation income in 2020.
INTUCH stated that the 2020 expenses decreased 23% from 2019, mainly due to an impairment loss on investment in associates and a loan to an associate under the venture capital project, along with the recognition of additional provision for past service costs of employees under the new Labor Protection Act, while some other expenses dropped as a result of the COVID-19 situation.
Total consolidated assets rose 6% from the end of 2019, mainly from an increase in the value of investments in associates and joint ventures due to their 2020 operational results. There was also an increase in other current financial assets, namely bank deposits & short-term investments, along with venture capital investments due to the change in accounting policy, in accordance with TFRS 9, to recognize these at fair value. The value of property, plant & equipment decreased, along with intangible assets under operating agreements, as a result of the depreciation & amortization recorded in 2020.
In addition, the Board of Directors has resolved the resolution for a dividend payment of 1.35 baht per share to be paid on April 22, 2021. The ex-dividend date will be on February 22, 2021.