FSMART tops up outlook

MAI-listed

Forth Smart Service (FSMART), a provider of online top-up machines, aims for 20% growth in top-up sales this year to 30 billion baht despite fiercer competition.

True Corporation, which owns No.3 mobile operator True Move, has begun providing its own top-up machines at 7-Eleven stores nationwide.

“This creates some challenges, but we haven’t seen any significant impact on our revenue stream in the near term,” said Somchai Soongswang, managing director of FSMART.

FSMART has a network of 95,000 Boonterm top-up machines, but fewer than 10% are installed in front of 7-Eleven stores.

The company insists it has a good relationship with 7-Eleven, saying Boonterm machines have drawn customers and generated revenue for stores.

Moreover, FSMART got a financial windfall from a dispute between 7-Eleven and Advanced Info Service (AIS), the country’s largest mobile operator, in September last year.

CP All Plc, the operator of 7-Eleven stores, ceased top-ups of AIS prepaid mobile service at its stores, citing an unsettled commission deal.

“AIS mobile customers who cannot refill their prepaid service at 7-Eleven counters will turn to our Boonterm top-up machines outside the convenience stores,” Mr Somchai said.

Previously, FSMART said the dispute would create almost 20 million baht of top-up sales per month, a 30% gain in value for its Boonterm machines nationwide, especially those located in front of 7-Eleven stores.

The Boonterm machines provide online top-up services for five mobile operators and act as a pay point for online gaming, electricity bills and money transfer. FSMART gets a 12% fee from each transaction on average. Some 94% of the company’s revenue comes from top-up sales for mobile.

FSMART hopes to install 25,000 Boonterm machines this year and projects machine sales of 30 billion baht, up from 25 billion last year.

FSMART shares closed yesterday on the Market for Alternative Investment at 18.10 baht, down 50 satang, in trade worth 523 million baht.