Thai bourse suspends TV broadcaster shares

The Stock Exchange of Thailand ( SET) has ordered suspension of iTV Plc shares as the Thai leading broadcaster's auditor issued a disclaimer of pinion on its financial statements, saying the figures failed to reflect the actual position of the company.

iTV announced on Monday its net loss for 2006 at 1.78 billion baht (35.6 baht to the U.S. dollar), or 1.48 baht per share, falling by 362.5 percent from a net profit of 679.11 million baht or 0.56 per share baht in 2005, according to a report by news group The Nation.

"The huge net loss resulted mainly from the accounting recognition of the accrued differences in concession fee payable for the period of 2004-2006, and the penalty interest charges of the difference in concession fee payment. All these amounted to a total sum of 2.51 million baht," iTV reportedly said in its statement submitted to the SET Monday.

In 2006, iTV reported 2.16 billion baht in total revenues, drop by 7.9 percent from 2005. The company said the accounting recognition of the accrued differences in concession fee was due to the ruling of the Supreme Administrative Court on December 13, 2006 which ruled to uphold the judgment of the Central Administrative Court that effected on revocation of the arbitration awarded dated Jan. 30, 2004.

As a consequence of that ruling, the company has to comply with the previous terms and conditions as specified in the concession agreement.

However, the company said it is in the process of negotiating the matter and proposing several alternatives to the Office of the Permanent Secretary, the Prime Minister's Office, as the company does not have sufficient cash in hand to repay all these payment charges.

The suspension sign has been put on the stock since the second trading session on Sunday to enable shareholders and investors to have sufficient time to scrutinize the auditor's report, the SET said.

However, the SET will allow the trading of iTV and post a notice pending (NP) sign effective from the first trading session tomorrow until the company submit its amended financial statements for the Securities and Exchange Commission concludes that it will not be needed to amend the financial statements.

Source: Xinhua