Samart shows off a 76% hefty profit growth in the first half of this year
Watchai Vilailuck, the president of Samart Corporation Public Company Limited, reports impressive operational results of Samart Group in the second quarter of 2010. The group posted a total income of 4,355 million baht, which is close to its income in the corresponding period of last year, and a net profit of 145 million baht which rose by 19%. Consequently Samart Group impressively generated a total income of 8,869 million baht which shows an 8% growth and a net profit of 292 million baht which boasts a hefty 76% increment in the first half of 2010. Regarding the recovering economy, Samart Group should reach its 2010 target.
Its Mobile Multimedia business generated a total income of 2,048 million baht in the second quarter of 2010. The amount is close to its income in the corresponding period of last year. Declining handset prices, marketing investments and the launch of MVNO services caused its net profit to drop by 30% to 31 million baht. However, the net profit in the second quarter satisfactorily increased by 15% compared with the net profit in the first quarter and mobile phone sales soared by 24%. In the first half of this year, Samart Group sold over 1.7 million mobile phones. The sales increased by 15% from their figure in the corresponding period of last year. Domestic sales reached 1.55 million handsets and 150,000 mobile phones were sold overseas. The group focuses on efficient after-sales service and inventory control. In the third quarter it will launch new concept phones to support a variety of social networks and push applications. The MVNO (mobile virtual network operator) business has 85,000 users. Their number should rise to 100,000 in the third quarter and 150,000 at the end of 2010. The content business, of which the company is the leader, keeps growing. The business generated an income of 260 million baht in the second quarter. The figure shows a 13% increase compared with its income in the first quarter and a sharp rise of 35% compared with its revenue in the same period of last year. In the third quarter, the company will introduce new services that support 3G networks including VDO Call Center.
The ICT Solutions business of Samart posted a total income of 1,772 million baht in the second quarter of this year. Its net profit reached 106 million baht, increasing by 26% from the corresponding period of last year. At present, the company is implementing projects worth altogether over 15 billion baht and recognizing revenues. As national situations are being relieved and procurement in the government sector is resuming, the company is preparing to bid for more projects worth altogether over 20 billion baht in the third and the fourth quarters. The company is confident that it will reach its goal in the ICT Solutions business in 2010 with incomes from this field growing by at least 25%.
Regarding its Related Business, Cambodia Air Traffic Services Company Limited, Kampot Power Plant Company Limited, Samart Engineering Company Limited, Vision and Security System Company Limited, and One to One Contacts Company Limited posted an overall income of 1,086 million baht in the first half of this year and the figure shows a 17% increment. Vision and Security System Company Limited secured a project worth over 300 million baht and One to One Contacts Company Limited won a bidding contest and signed a contract to implement a government project worth 525 million baht.
“Samart Group will show off its comprehensive businesses in the second half of this year. In the consumer market, i-mobile will unveil 20 new products to expand its customer base in the middle-class market. New products will support Android and 3G technology and have multimedia functions which are the selling point of i-mobile. By the end of 2010, Samart will have sold 4 million mobile phones. The ICT business tends to grow continuously and be a major source of regular incomes for Samart Group. Samart is also waiting for clear information on many more projects from the government. These include the 3G network expansion project, satellite TV projects, the NGV bus project in which the company expressed its intention to take part in the first place especially with e-ticket and other electronic communication systems in which the company has know-how and expertise. Samart Group is looking for new business opportunities to strengthen its sources of regular incomes and foundations,” Mr Watchai concluded.