SET-listed InTouch Holdings posted a net profit of 11 billion baht in 2020, a drop of 35 million from a year earlier, mainly caused by a decline in profit contribution from telecom operator Advanced Info Service (AIS) as a consequence of the pandemic.
According to InTouch's financial statement reported to the Stock Exchange of Thailand (SET), AIS's profit contribution to InTouch fell 10% year-on-year to 11.1 billion baht in 2020.
"The drop resulted from the economic slowdown caused by the pandemic, increasing competition in the telecom segment, as well as a decline in tourists," said Anek Pana-apichon, chief executive of InTouch.
Mr Anek said AIS's profit fell 8.9% year-on-year to 28.4 billion baht in 2020, excluding the impact from the new TFRS 16 accounting standard.
AIS's revenue from its mobile service fell 6.5% year-on-year.
However, revenue from AIS Fibre, a fixed broadband internet provider under AIS, shot up 22% year-on-year because of the trend in people working and studying from home. Some 300,000 new subscribers were added last year, bringing the total to 1.3 million.
According to InTouch, it also received a shared profit contribution of 211 million baht from satellite service provider Thaicom in 2020, compared with a net loss of 926 million a year earlier, mainly due to the recognition of impairment losses on satellites in 2019 and compensation income in 2020.
Thaicom booked a profit of 514 million baht in 2020, reversing a net loss of 2.25 billion baht a year before.
Mr Anek said InVent, the corporate venture capital arm of InTouch, last year invested in five more startups: Datafarm Co, a cybersecurity provider; Axinan Pte, an insurance tech provider; Paronym Inc, an interactive video technology developer; Chomchobgroup Co, a points exchange and redemption platform; and Swift Dynamics Co, a consulting firm for cloud system and Internet of Things.
InVent also made additional investments in Peer Power Co, Choco Card Enterprise Co and Event Pop Holdings Pte.
The total amount of investment by InVent was 279 million baht in 2020.
As of the end of 2020, InVent had 18 companies in its portfolio worth 975 million baht, Mr Anek said.
Mr Anek said InTouch is still seeking new investments to ensure sustainable income in the future, particularly in the areas of digital lifestyles, 5G tech, cloud and cybersecurity. The firm plans to pay a dividend on earnings for the second half of 1.35 baht per share on April 22.