ITEL leans on fibre optic to hike revenue

MAI-listed Interlink Telecom (ITEL) expects revenue growth to exceed 20% in 2017 as growing fibre cable network deployment spurs local demand.

“We expect revenue to reach 1 billion baht this year, a hike of 23% from 810 million in 2016,” said managing director Nuttanai Anuntarumporn.

ITEL expects its leased line fibre-optic network to contribute 80% of total revenue by 2021, up from 62% currently, based on its average annual revenue growth rate projection of 20%, he said.

Founded in 2007, ITEL is 60% owned by parent firm Interlink Communications Plc (ILink). The firm provides telecom network rental services, installation service for telecom networking and manages data centre hosting systems.

“Our leased-line fibre optic network is our flagship business, generating core revenue for us,” said Mr Nuttanai.

ITEL has a fibre-optic network covering 75 provinces nationwide. More than 1,300 organisations have rented ITEL’s fibre-optic network for operational communications.

Mr Nuttanai said the leased line fibreoptic network rental service showed the most long-term potential for ITEL. Fibreoptic communication has been enjoying high growth, driven mainly by both development of new technology and market demand.

ITEL reported revenue of 188 million baht in the first quarter of 2017, up 17.5% from 160 million in the same period last year.

Of the total, telecom network rental service generated 117 million baht in the first quarter, up 41% year-on year, followed by 51 million from its installation service for telecom networking and 19 million for its data centre hosting system.

Telecom network rental service accounted for 62% of total revenue in the first quarter, followed by installation service for telecom networking (27%) and its data centre hosting system (11%).

ITEL reported earnings before interest, tax, depreciation and amortisation of 72 million baht in the first quarter of this year, up 30% from 55 million year-on-year.

The firm’s net profit stood at 18 million baht, an increase of 50% from 12 million in the first quarter last year.

ILink posted revenue of 789 million baht in the first quarter of this year, up 8.7% year-on-year. ITEL contributed 20% of ILink’s revenue.

To serve surging demand, Mr Nuttanai said ITEL has earmarked 290 million baht to expand its last-mile connectivity using fibre optic cable.

He said the Thailand 4.0 policy is pushing organisations to accelerate their business development to handle digital disruption challenges.

ITEL shares closed yesterday on the Market for Alternative Investment at 4.88 baht, up eight satang, in trade worth 15.5 million baht.

ILINK shares closed yesterday on the Stock Exchange of Thailand at 14.50 baht, up 30 satang, in trade worth 10.4 million baht.