Free-TV operator iTV Plc recorded a net profit of Bt172 million in the second quarter, down Bt71 million or 29 per cent from the same period last year, according to its filing to the Stock Exchange of Thailand yesterday.

But its net profit rose Bt69 million - 67 per cent - from the previous quarter because of an increase in advertising revenue related to football's World Cup.

Its total revenue for the second quarter was Bt579 million, showing a 17-per-cent rise from the previous quarter but a year-on-year drop of 8 per cent.

The declining revenue is due to increased competition, political uncertainty, increased oil prices and rising interest rates. The downturn in the overall economy forced customers to be more cautious in spending on advertising.

iTV's advertising income for the quarter amounted to Bt460 million, a 19.7-per-cent increase from the previous quarter, but showed a year-on-year drop of 12 per cent.

Its airtime rentals totalled Bt107 million, a 3-per-cent increase from the previous quarter. The amount showed no significant change from the same quarter of last year.

iTV's share price closed yesterday at Bt3.42, down from Bt3.54.

The company is awaiting the ruling of the Supreme Administrative Court on its fee dispute with its concession owner, the Office of the Permanent Secretary of the PM's Office. On May 9, the Central Administrative Court overturned a 2004 decision by an arbitration panel that had significantly cut iTV's concession fee.

It means iTV must resume paying an annual rate of 44 per cent of revenue or Bt1 billion per year, whichever is greater. At present, it pays only 6.5 per cent of revenue or a minimum of Bt230 million.

The ruling also called for a backdated fee to be paid to the government of about Bt1.5 billion.

The PM's Office is also demanding iTV pay a fine of Bt75 billion for adjusting its news/entertainment ratio to 50-50 from 70-30 since 2004 without consent.

iTV had earlier failed to win compensation from the Office of the Permanent Secretary after arguing that the government had overcharged its concession fee.

Therefore, iTV filed the case with the arbitration panel and won the legal battle when the panel allowed it to pay a much lower annual fee and enjoy the flexibility to adjust its programmes from January 30, 2004.

The Central Administrative Court overturned the ruling.