Summary · why it matters
Interlink Telecom Public Company Limited, or ITEL, reported second-quarter 2026 results with total revenue of 711 million baht, up 7 percent from the same period last year, and net profit of about 20 million baht. EBITDA margin rose from 19.9 percent to 26.7 percent, reflecting better cost management and improved revenue quality. The revenue increase was driven by the network installation service business, which recognised more revenue and signed new contracts, as well as Interlink Healthtech Company Limited, or IHT, which began gradually recognising revenue from the opening of CT Scan centres. Meanwhile, the data service business was still affected by the end of the first and second phases of the USO project, which are in the process of work delivery and contract renegotiation, causing some recurring revenue to temporarily disappear. For the first six months of 2026, the company had total revenue of about 1.418 billion baht and total net profit of about 52 million baht, comprising about 1.063 billion baht from ITEL, about 280 million baht from Blue Solution, about 55 million baht from the Interlink Healthtech business, and about 20 million baht from other income. At the end of the second quarter of 2026, the company had total backlog of about 2.74 billion baht, consisting of 1.638 billion baht in data network services, up from 1.254 billion baht, and about 787 million baht in network installation work. More than 70 percent of the backlog is recurring revenue. In the hyperscaler data centre customer segment, the company has new contracts worth about 699 million baht, comprising about 338 million baht in one-time payments and about 361 million baht in monthly recurring revenue. These figures are based on initial usage levels and do not yet include opportunities to expand the number of circuits or increase service areas in the future. ITEL will begin providing concrete services to hyperscaler customers from August 2026 onwards, after several data centres are completed and begin commercial operations. The company expects continuous growth from the remainder of 2026 through the end of 2027 because these are long-term contracts and some customers pay for services in advance, which will help improve the company's cash flow towards the end of the year. However, the revenue recognition pattern for these contracts is still being discussed with the auditor as to whether revenue should be recognised as a lump sum based on payment receipt or gradually over the contract term, so the revenue to be recognised in the third quarter of 2026 cannot yet be clearly specified. Dr Nattanai said that investment in data centres and AI infrastructure in Thailand will increase demand for data connectivity services, because data centres need to connect between centres, connect with users, and link internationally. ITEL has a fibre optic network covering the whole country via railway routes, roads, and underground networks, and can provide both primary and backup routes to customers. In the EEC area, network utilisation is currently more than 50 percent and there is still capacity to support growth. The customer base covers factories and private organisations, mobile operators, internet service providers, and hyperscaler groups, many of which will begin operating data centres within this year. In addition, the company is expanding its fibre network to connect with Malaysia through the Sungai Kolok checkpoint, adding to the existing channels at the Sadao and Padang Besar checkpoints. The network along the railway, for which the company has a 30-year management right, is infrastructure that creates a competitive advantage, and the main routes nationwide have been almost fully invested in. For the third phase of the USO project, the company has submitted a proposal and it is under consideration by the relevant agencies. ITEL confirms its readiness to resume operations at various centres immediately if the project is approved and supported by a contract, because it has prior experience operating the first and second phases of the USO project. In the medical business, CT Scan services are now available in three hospitals, and the company is studying usage patterns in each area. The number of users is expected to increase as awareness grows among local communities. The company also plans to list Blue Solution on the stock exchange and is considering appropriate structures and options. Blue Solution has returned to normal operations and profitability, and aims to enhance its expertise in ERP systems, especially cloud-based systems. For 2026, ITEL maintains its total revenue target of about 3.6 billion baht. In the second half of the year, the company will accelerate work delivery, control costs, and improve utilisation of existing infrastructure, while increasing the proportion of recurring revenue from the connectivity business, data centre customers, and hyperscalers, which is expected to be a key driver of performance going forward.
Interlink Telecom Public Company Limited