The essence of the bookTriple T Broadband Public Company Limited or 3BB Send to Bualuang Asset Management Company as management companyJasmine Broadband Internet Infrastructure Fund (JASIF) March 20, 2023
That is..the full payment of rent that 3BB must pay to the JASIF Fund on March 15, 2023, but 3BB can only pay the rent of 700 million baht (out of the amount of 900 million baht). leased to JASIF due to intense competition in the broadband business. until it affects the cash flow
On March 23, 2023, Bualuang Asset Management notified the Stock Exchange of Thailand that 3BB still owed JASIF rental fees. 43 million baht to be paid by the end of this month (with interest of 7.5% p.a.)
Until the last 27 Mar.’ 23 JASIF I have already received the rest of the rent..!!
But the important highlight is not the remaining figure of 43 million baht, but it is about the next installment of rent. From now on, 3BB will be able to pay the rent again or not. Because the 3BB book clearly states that “If the competitive situation remains intense, the company may not have enough cash flow to pay its rents JASIF has completed the amount in accordance with the lease agreement and/or within the due date.
of that cause 3BB would therefore like to inform the Fund of such problems as well as consider finding a solution to the rental problem together with the company in order to be in line with the competitive situation in the broadband business market and the ability to pay the company’s rent.”
Combined with information from JAS financial statements for 2022, 3BB was found to have a total number of users of 3.7 million as of 2021, which is 3.65 million. Other ancillary services and customers with outstanding debts Total users will be for general customers who are Fixed Broadband and can collect money in respect of them 2.34 million from the year 2021 in 2.43 million or reduce 90,000
while the average revenue per head (ARPU) in the fourth quarter of 2022 577 baht per month compared to the 4th quarter of 2011 in 597 baht per month It fell by 20 baht per month and the average per capita income (ARPU) in 2022 was 587 baht per month from the year 2021 in 598 baht per month Discount of 11 baht per month
That does JASIF going into an immediate worrying situation.. will 3BB have the ability to pay again or not in the next few months from now..??
It is estimated thatprovided that JASIF is attached to 3BB, together with the competition restrictions that arise, the chances of 3BB being unable to pay rent payments are quite high.
Until leading to 3 crossroads that JASIF unit holders must consider and consider how they will impress them..!?
The first way… 3BB doesn’t have enough liquidity. until unable to pay as arranged, leading toInstallment or extend the rent payment each monthAs a result, JASIF will have an immediate lower income. but still have to pay debts with Bangkok Bank (BBL), leading to lower profits Until inevitably leading to lower dividends
Second way..Restructuring the rent to be consistent with the situation Consequently, the dividend will decrease in the short term. but he may acquire other conditions to offset such reduction in rent.
The third way.. “reduce the rent” along with “Cancellation of the income insurance contract” As a result, dividends will be significantly reduced. in exchange for a longer contract renewal
This is it “Three Crossroads” on unitholders JASIF one must choose which approach to take.. or finally he may decide to sell out investment units.. for “end of the journey” With JASIF, it is possible..!!??