Sky ICT aims for top three global aviation software spot by 2024
Having clinched a deal with Airports of Thailand (AoT) in 2020 to develop smart airports, the Stock Exchange of Thailand (SET)-listed aviation tech firm Sky ICT is now setting its sights on becoming a top three global player in aviation software by 2024, according to Sithidej Mayalarp, the company’s chief executive.
Sky ICT is negotiating with a leading global aviation software provider in Europe to acquire a 100% stake in the company, a deal that is expected to be finalised next year. The acquisition target boasts a broad customer base of 350 airport operators worldwide.
Should the deal go through, Sky ICT is poised to become the premier aviation technology brand in Southeast Asia and gain a place among the top three players globally.
Sky ICT’s portfolio includes consultation, design, supply and distribution of products and devices related to information and communication technology, as well as security infrastructure solutions.
In 2020, AoT awarded Sky ICT a 10-year contract to develop aviation platforms, such as the common use passenger processing system (CUPPS), the advanced passenger processing system (APPS), airport free WiFi, and passenger baggage reconciliation system. These platforms account for approximately 85% of the group’s total revenue.
The company invested around 2.3 billion baht to develop CUPPS, which began serving airports in 2020. Furthermore, Sky ICT rebranded an airport and flight information app, originally created by AoT, into the Sawasdee app by AoT as part of the aviation platform development contract in 2021.
Last year, AoT requested Sky ICT to extend the APP’s payment system to connect with external e-payment services, complementing the existing Sawasdee Pay feature, a digital wallet co-developed with Krungthai Bank.
The tourism industry is rapidly recovering, with foreign arrivals returning to near pre-pandemic levels. The number of inbound and outbound travellers at AoT’s six airports averaged 180,000 per day in August, compared with roughly 220,000 per day before the pandemic.
Sky ICT is experiencing income growth as more tourists utilise its platforms at airports. Various components of the group’s business portfolio generate other sources of income.
The company reported total revenue of 942 million baht with a net profit of 117 million in the second quarter, a considerable improvement from a net loss of 17 million baht year-on-year. The increase was attributed to revenue from the platforms it developed for AoT, such as Apps and passenger name record (PNR) systems.
Sky ICT anticipates a strong performance in the second half of this year due to the peak tourism season in Thailand, which should benefit its aviation tech and airport service businesses.
In July, Sky ICT announced plans to acquire a 100% stake in Siam Administrative Management and Security Guards Co (SAMCO), a major player in Thailand’s security service industry. The move aims to expand the group’s business by combining the capabilities of both companies to create synergy in providing comprehensive facility management and security services.
SAMCO provides four types of services: building management and cleaning; security; security system management; cash management and security transport. Following the investment in SAMCO, Sky ICT sees an opportunity to grow these businesses.
In July, SET-listed Turnkey Communication Services (TKC), an affiliate of Sky ICT, announced its board approved the acquisition of a 24.95% stake in Advanced Information Technology Plc (AIT). This acquisition will enable TKC to increase its revenue stream over the long term as AIT is a market leader in systems integration in the local public sector.
Sky ICT generates 85% of the group’s total revenue, a ratio expected to decline to 60-70% within three years, with its affiliates generating a larger portion of revenue, reports Bangkok Post.
