The share price of SKY ICT Public Company Limited (SET: SKY) continued to rise on Monday following its outstanding third quarter results as the company recognized income from the recovery of the tourism industry in Thailand.
SKY reported a net profit of 124 million baht in 3Q23, a significant recovery from a net loss of 35 million baht in 3Q22. The increase was a result of the service of the Advance Passenger Processing System (APPS) and Passenger Name Record (PNR) project that includes the number of passengers both inbound and outbound. International passenger service through the APPS and PNR systems has continuously increased since the COVID situation subsided during the beginning of 2023.
SKY also has recognized the income from government projects for which the company has continuously won bidding and has delivered work according to contract during 2023.
Mr. Sithidej Mayalarp, CEO of SKY revealed the company Q3 net profit at THB 130 million, a reverse from the loss of THB 35 million in last year, as SKY made a total revenue of THB 1,080 million, representing a 59% YoY growth.
The CEO said as the Q4 is a high season for Thailand tourism, SKY will benefit from increasing tourism, as the company revenues are attributable from airport related projects such as an aviation tech and airport services, namely; Common Use Passenger Processing System (CUPPS) and Advance Passenger Processing System (APPS), that will recognize the revenue as the number of passengers will increase.
These projects were delivered as planned and SKY still has the undelivered projects or the “backlog”, that has a total worth of THB 22.1 billion at the end of Q3. Moreover, SKY also gained some revenues from the investment in subsidiaries, such as the Metthier ltd. that focuses on “Smart Facility Management” for the private real estate sector.
Furthermore, SKY also has an “Employee Joint Investment Programs” (EJIP) which allows its employees to invest in the company and its subsidiary project with a fraction of their salary around 3% to 8%, and can later sell their stock into the market within 1 to 3 years, depending on which program they invest in.
The share price of SKY rose as much as 5.2% at the opening bell on Monday to THB30.25 per share. SKY had risen 12% since the announcement of its 3Q23 earnings.