SET-listed Samart Corp is restructuring its subsidiary, Samart I-Mobile (SIM), in a bid to tackle losses from traditional mobile handsets, shifting to a non-mobile business.
The move aims to generate a new revenue stream, especially from digital content, digital sports and digital marketing. The company plans to introduce its new digital content soon.
The 12-year-old mobile business SIM has been renamed Samart Digital in line with the rejig, said Samart Corporation president Watchai Wilailuck.
Last year, SIM began renovating the existing 28 i-Mobile shops nationwide and changed the name to Open shops.
The Open shops offer a variety of products including digital devices, digital-trucked radio, communication equipment, sports items and smart home devices, as well as a coffee corner.
The shops also provide services for all brands of handsets and a payment counter service.
Mobile business used to be a major revenue source for Samart Corp, but its profits have declined because of a handset market pricing war, especially from Chinese vendors.
The result was reflected in Samart Corp's financial status in the second quarter this year, with revenue of 3.8 billion baht causing a net loss of 188 million baht.
In the same period of 2016, the corporation booked a net profit of 88 million baht.
Mr Watchai said the reason for the loss was a weak mobile business because of intense competition and the sluggish economy. SIM reported second-quarter revenue of 329 million baht, down 60% from the same period in 2016.
"After restructuring of SIM's business, we expect a profit in the second half this year," he said.
SIM officially exited the mobile operator business in June after the company submitted its request to the telecom regulator to discontinue its mobile service under the mobile virtual network operator (MVNO) model.
An MVNO is a company that provides mobile service but does not have its own mobile network. It rents another mobile network's capacity to provide service.
Samart Corp runs four major business groups: mobile multimedia by SIM; ICT solutions and services by Samart Telcoms; technology-related businesses by Samart Engineering, including operating TV antennas and set-top boxes for digital TV businesses; and utilities and transport.
Mr Watchai said ICT solutions and services will be a major revenue generator in the second half this year.
Samart Telcoms generated 1.68 billon baht for Samart Corp in the second quarter this year, a gain of 24% compared with the same period in 2016.
SAMART shares closed yesterday on the Stock Exchange of Thailand at 12.90 baht, down 80 satang, in trade worth 83.4 million baht.
