Shares of most SET-listed digital TV operators surged yesterday after the Central Administrative Court's ruling allowing operators to renounce their digital TV licences.
The ruling prompted analysts to anticipate that some digital TV operators will return their digital TV licences to the National Broadcasting and Telecommunications Commission (NBTC).
The court ordered the NBTC to return bank guarantees worth 1.5 billion baht to a loss-ridden digital TV operator, Thai TV Co Ltd, but it turned down the company's demand for damages.
Pantipa Sakulchai, president of Thai TV, filed a lawsuit against the NBTC seeking court orders nullifying the company's bids for two digital TV channels from the NBTC and revoking NBTC letters demanding it pay the licensing fees.
The court ruled that the commission failed to keep its promise as detailed in the prospectus and that Thai TV had the right to cancel the contract.
Several SET-listed companies hold digital TV licences, including Workpoint Entertainment Plc, BEC World Plc, MCOT Plc, GMM Grammy Plc, Amarin Printing and Publishing Plc, RS Plc, Nation Multimedia Group Plc and News Network Corporation Plc.
An analyst from Yuanta Securities who requested anonymity said the court's ruling led to positive sentiment for broadcasting shares, especially in the mid- and small-cap players that have not broken even in their earnings and suffer from net operating losses, such as NMG, AMARIN and MCOT.
"The Thai TV case has not yet culminated, as the NBTC must follow up on the appeal process," the analyst said. "Although it is not yet concluded, this is a positive sentiment for the market."
The analyst said that if the digital TV operators are allowed to return their licences, there is a possibility that NMG, which has been suffering from financial liabilities, and MCOT might capitalise on the move.
BEC is likely to continue holding three digital TV licences, the analyst said, as the company has a huge investment in digital TV operations.
Amarin might decide not to return its licence even though it recorded a net loss last year, because the business is supported by major shareholders, the analyst said.
