UPDATE 1-Thai Shin Sat sees operating profit in 2008, sales up

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BANGKOK, Feb 22 (Reuters) - Thailand's Shin Satellite SATT.BK said on Friday it expected to make an operating profit this year after an operating loss of about 560 million baht ($17 million) in 2007 as IPSTAR and its telephone business grow.

The company expected 2008 revenues to rise at least 30 percent, but its net profit would be below the 3.04 billion baht earned in 2007 as it would have no extra gains, chief finance officer Tanadit Charoenchan told reporters in conference call.

"We should have profit from operations this year because we will get more sales from IPSTAR while our subsidiaries in Laos and Cambodia should continue to grow," Tanadit said.

The company was expected to post a net 2008 profit of 1.8 billion baht, according to Reuters Estimates.

In 2007, the firm booked a 5.13 billion baht gain from selling a 49-percent stake in wholly-owned Shenington, a holding firm that invests in telephone businesses in Laos and Cambodia, it said in a statement.

It also booked a 1.05 billion baht foreign exchange gain, while 2007 revenues from sales and services fell 6 percent to 6.4 billion baht due mainly to falling revenues from satellite transponder leasing, it said.

The $400-million IPSTAR, the world's largest broadband satellite, provides high-speed Internet and telecoms services in seven countries, including Australia, New Zealand, Vietnam, Cambodia and China.

The company planned to install ground stations and provide full commercial IPSTAR services in Malaysia, the Philippines, South Korea and Indonesia in the first half of 2008, the statement said.