"RS" secures astounding profits despite the air of economic recession with the company's disclosure of its business performance announcing that in the third quarter 2009, RS has generated over Bt. 554 million total income. As a result of the company's previous restructuring scheme and strategic business reforms, the company has continually shown a significant increase in profitability through the second quarter and the third quarter of 2009 respectively.
Ladprao - Mr. Darm Nana, Chief Financial Officer of RS Public Company Limited (RS), reveals that: for the third quarter of 2009, the company has secured Bt. 554.46 million income with a total revenue of Bt. 52.34 million, an increase from the same quarter of the last year totaling Bt. 29.12 million or 125.4%, which is Bt. 35.9 million more than the income of the 2009 second quarter or totals as much as 218.9% raise.
The skyrocketing income mostly came from the latest pin-up business sector: Music & Digital, which enables sweeping success of the overall business for RS. In the third quarter of 2009, the Music and Digital business has contributed to over Bt. 232.9 million income, a 32.2% increase from that of the same quarter last year or a calculated 16.1% growth rate. Such outcome is the result of the industry's consistent year on year growth in digital business as seen in RS' successful campaign launching of "Super Mao *339" the first music download service of its kind that enables users of all mobile phone networks to download any of RS' songs in a buffet manner. The campaign has been hugely popular among consumers who are looking for convenience and cost-efficient music download services and after only 2 months since launch, the campaign has closed its sales with over 1 million members. By the end of 2009, RS anticipates 2 million members for the campaign while by the end of 2010, the company aims to service over 3 million members. Apart from that, the company is now developing its existing digital content to cater to the use of 3G network, which will be available in the country in due course.
Besides the company's restructure and strategic business reforms through a scheme of reducing investment in business units that do not generate sound profits, RS also cut down its investment in businesses with high risks and low returns of income, adjusting some of its cost structure along with fine-tuning its earning channels, as well as increasing investment on media business units which had proved to be potentially profitable and powerful for the company's business conduct. The restructure and reformation scheme has started to show fruitful outcomes and largely contributes to the increase of this quarter's overall business performance.
Sports business is another up and coming channel to keep an eye on for the next year as the company has secured the 2009 mid-year license to live-broadcast FIFA WORLD CUP SOUTH AFRICA 2010 with good responses from sponsors. The income from this sector will be present within the second and the third quarters of 2010 while RS is aiming to continue gearing up in full-throttle for the sports business. Recently, the company has secured the prestigious sole rights to live-broadcast the 25th SEA Games (25th SEA Games Vientiane) for Thailand. What's more, RS is aggressively focusing on the satellite TV business with its exclusive two variety channels including "You Channel," a teen-targeted music variety station under the concept "You Channel: Your Friend on 24 Hours" and the "Sabaidee TV" channel, a station that features Luktung music, Folk music for life, Folk Luktung music for life, and RS' old-school hits under the concept "Thai Music in Different Styles for the Whole Family". The company is also preparing to launch two new TV channels at the beginning of next year.
As for the business operations of RS through the rest of 2009, all RS business units will be working in harmony together to push forward the company's progress. The Entertainment & Sport Content Provider, consisting of Music & Digital, Show Biz, Films, Sports and the Media Service which includes TV, radio and modern trade media businesses, will all join together as RS' important channels for the "Synergy Content Management" concept in order to mutually support each business unit to further strengthen the overall business in the future.
"RS' business operations until the end of this year will retain focused in the role of a producer and entertainment & sports content management body. We are still dedicated to the efficiency of all business units and will carefully enhance the performance of capital management with our proven success clearly seen in our latest growth of income. Although we are now continually facing negative factors from political and economic instabilities that have resulted in consumer's halting decision to spend, we strongly believe that the Thai people are still looking for entertainment aspects of life. With our sturdy business strategy planning to address consumer's needs, we can surely push forward our business to achieve our goals," Mr. Damp concludes.