RS pockets over 300 million baht in profit in 9 months despite economic slowdown Q3 profit makes history, while MSCI picks RS stocks for indexing

BackNov 14, 2013

RS has recently unveiled its 9-month performance of 2013, with a whopping 302 million baht profit pocketed into the company, or a 33% increase over the previous year. In the third quarter, the company generated 124 million baht profit, which is a record high (not counting quarters with World Cup) or a 56% increase from last year. The net revenue is 922 million baht, due to the steady growth of its media business. In the third quarter of this year, its media business brought 573 million baht revenue, a 80% increase from last year. Meanwhile, MSCI has picked RS stocks for MSCI Global Small Cap, to be announced on November 26.

Ladprao – RS chief financial officer Darm Nana has revealed the performance in the third quarter of 2013. The company has made 922 million baht in terms of revenue, a 15% increase from the previous year, with net profit standing at 124 million baht, 56% more than last year’s. Its media business brought in 573 million baht revenue, an 80% increase, thanks to the utilization of advertising space in line with the rising rating in its satellite TV channels and radio channels.

Its satellite TV channel “Channel 8” has recently introduced a mega drama “Poo Chana Sib Tid”, a period drama adapted from a critically acclaimed novel which has been made into stage performances, TV dramas and films. Star Max channel features talk-of-the-town show “Kon Dung Nung Clear” as well as a new game show “Game Dara Shalala” which will add more flavors to the channel. Sabaidee TV showcases biggest hits from R Siam 24 hours a day, while YOU Channel brings the audience the latest music videos from RS. Sun Channel features world-class football matches such as La Liga Spain. RS has also recently introduced a new satellite channel “Shop 77” under the concept “The only shopping TV you can trust”, targeting housewives and those who love home shopping. The channel has been met with great feedback shortly after its launch.

In its radio business, RS constantly prepares new marketing strategies such as by introducing applications and technologies to offer more convenience. The growth of online market and smartphone usage has resulted in the change in the audience’s habits. The advertising rate of Cool Fahrenheit 93 has also been increased by 20%, which is in accordance with the station’s increased rating.

Meanwhile, the showbiz business has made 142 million baht, thanks in part to major concerts such as “Short Charge Shock Rock Concert” at Impact Arena Muang Thong Thani, as well as various marketing events such as “Sabaidee on Tour Year 4” and “Thai Life Insurance on Tour Concert”.

Its music business cashed in 194 million baht, a 10% drop from last year caused by the decreased revenue from music download. However, the music streaming service through “Deezer” application on Dtac network, which has begun since the end of last year, has shown a steady growth in this quarter, with more members, more popularity and rising number of 3G users.

Due to its strong performance and steady growth, RS has been chosen to enter MSCI Global Small Cap Indices, starting November 26 this year. This will help attract more foreign investors to invest in RS stocks, and reflect RS’s position as a high-quality company with liquidity.

“As for the direction for our fourth quarter, we will still prioritize our media business. We will adjust our strategies to meet the changing needs of the market and the competition. Although the economy overall is still not very stable, negatively influenced by political unrest, the fourth quarter of the year is the festive season in which people spend and enjoy their holidays. I am confident that the purchasing power in total will not drop. Coupled with RS’s strength in the media business, we are sure that the fourth quarter will still meet our target. As for our showbiz industry, we will have a concert for our teen audience Kamikaze’ K Fight Concert at Paragon Hall, which is well-received by the fans. For our music business, we have a new project from R Siam which will be a great opportunity for the upcoming AEC,” Darm said.