Samart reported its Q2 2024 financial results, with total revenue exceeding Bt2 billion and a net profit surpassing Bt100 million. This strong performance contributed to total revenue of over Bt4 billion and a net profit of Bt155 million for the first half of the year.

The company also experienced a positive response to its debenture offering, with institutional and major investors purchasing over 85 per cent of the bonds following the closure of sales in early August.

Mr. Watchai Vilailuck, Executive Vice Chairman of Corporate Strategy and New Business Development at Samart Corporation Plc., said that the company achieved satisfactory Q2/2024 results. Total revenue reached Bt2,104 million, reflecting a Bt29 million or 1 per cent increase from the same quarter last year. Net profit stood at Bt101 million, a notable rise of Bt75 million or 292 per cent compared to the same period last year, and an increase of Bt45 million or 82 per cent from the previous quarter.

However, the company has estimated long-term liabilities of Bt283 million related to a dispute with the Bangkok Asian Games Organizing Committee (BAGOC) and the Sports Authority of Thailand concerning the 13th Asian Games. This issue has resulted in a net loss of Bt183 million for the company.

Excluding the impact of these estimated long-term liabilities, Samart would have reported a net profit of Bt100 million for Q2 2024, reflecting strong business growth. The growth was driven by increased revenue from high-voltage transmission line construction projects and air traffic management services in Cambodia, part of the Utilities and Transportation Business Group, as well as airtime services from the Digital Communications Business Group.

Samart’s Business Groups Performance for Q2 2024:

Digital Communications Business Group (SDC):
The Digital Communications Business Group (SDC) reported a total revenue exceeding Bt100 million, primarily from its Digital Trunked Radio System services. This includes earnings from airtime services for the Ministry of Interior’s (MOI) radio communication system procurement project, with revenues recognized progressively since the end of last year. The group currently has a backlog valued at Bt1,139 million.

Digital ICT Solutions Business Group (SAMTEL):
The Digital ICT Solutions Business Group (SAMTEL) recorded a total revenue of Bt739 million and a net profit of Bt10.7 million for Q2 2024. The group has secured project contracts with several agencies, including the Industrial Estate Authority of Thailand, the Royal Thai Police, and the Government Housing Bank. SAMTEL is also preparing to bid on numerous projects from government, state enterprises, and private sector clients in the second half of the year.

Utilities and Transportations Business Group:
The Utilities and Transportations Business Group generated a total revenue of Bt1,249 million, an increase of Bt303 million or 32 per cent compared to the same quarter of the previous year. Samart Aviation Solutions Public Company Limited (SAV), the major shareholder of Cambodia Air Traffic Services Co., Ltd. (CATS), an exclusive air traffic and navigation service provider in Cambodia, reported a revenue increase of Bt72 million. The number of flights also rose to 24,678, representing a growth of 1,609 flights or 7 per cent compared to the same quarter last year.

Additionally, the turnkey high-voltage substation construction business under TEDA Company Limited continued its expansion, contributing an additional revenue of over Bt200 million. These developments were also supported by projects aimed at enhancing the efficiency of excise tax collection management, resulting in a total backlog of Bt9,658 million for this business segment.

Overall Performance

Samart’s strong performance in Q2 2024 resulted in a total revenue of over Bt4 billion for the first half of the year, with a normal profit of Bt155 million (before provisions). This marks a 292 per cent increase compared to the same quarter last year and an increase of Bt45 million, or 82.5 per cent, compared to the previous quarter.

Meanwhile, the offering of debentures by Samart Corporation Public Company Limited, which closed in early August, received an enthusiastic response from institutional and major investors. Approximately 85 per cent of the bonds were purchased, totaling over Bt643 million. This substantial demand highlights the strong confidence in the company’s business model and financial stability.

The debentures are 3-year instruments with a fixed interest rate of 5.40 per cent per annum, with interest paid every three months.

“We are confident that we will continue to achieve growth in both revenue and profit across all business sectors in the second half of the year,” Mr. Watchai concluded.