Entertainment provider set for a record year
The chief executive officer of RS Plc, a Stock Exchange of Thailand (SET) listed company, and one of Thailand’s biggest entertainment providers has predicted his firm will double its net profit during 2015 on the back of the rise of digital TV.
The CEO is quoted as saying he expects net profit to be around 700 million baht, this out of overall revenue of 4.6 billion baht. Of this, 80 percent will be generated by RS Plc’s media business while 10 percent will come from music and 10 percent from show business. The net profit margin of 15 percent will be a record for the company.
Surachai Chetchotisak said RS Plc had spent the past three years preparing the company to become a fully integrated media concern.
In 2014, the digital Channel 8 contributed 40 percent of RS Plc’s total revenue, generating one billion baht in turnover. Annual licence fees for the channel are 150 million baht.
For 2015, RS Plc has set aside 1.3 billion baht for its broadcasting arm, of which one billion baht will be spent on developing content for television and the remainder will pay for production and broadcasting equipment.
Channel 8, which placed fifth out of the 27 channels in Thailand in 2014, is expected to improve its ranking to third place this year. Having garnered such a strong overall position has led management to increase its TV advertising rates to 200,000 baht per minute, up from 70,000 baht a minute previously.
Although Khun Surachai said expected revenue from the 2014 Fifa World Cup failed to reach the levels the company expected, other businesses did well, seeing strong growth in radio and satellite TV, even though rivals were in the process of shutting down due to falling revenues and audiences.
The CEO said RS Plc will reduce its focus on sporting content since that segment of the market had failed to produce the kind of revenues expected. RS Plc had been the holder of the broadcast rights for the Fifa World Cup and following the May military coup had agreed to air all 64 matches on free TV. That action disrupted RS’s business plan and sales of World Cup set-top boxes had to be scrapped.
Even so, Khun Surachai said RS is keen to bid for some sporting events, provided the price paid is not too high. During 2015, La Liga Spain 2015-2018, the English Premier League 2015-2018, and Fifa World Cup 2019 will open the bidding for their broadcast rights.
RS has proven successful by concentrating on content targeted for specific groups and channel audiences.
Shares in RS Plc currently trade at around 17 to 18 baht each, with strong daily turnover.