RS hits its target of 2010's second quarter generating Bt1031 millions with total profit at Bt145 millions

BackAug 17, 2010

RS makes a great profit even though the overall economic goes slow. The second quarter of 2010 ends up with Bt1,031 millions revenue while Bt145 million is the net profit. Entertainment and sport businesses are expected to be the main income for the second half of the year as people tend to looking for relaxing activity after political crisis. 

Ladpharo- Darm Nana, Chief Financial Officer (CFO) of RS Plc., said that the second quarter of 2010 ended up with Bt1,031.96 millions of income with Bt540 millions higher comparing to last year same period or 110% growth. It also grows up Bt496.22 millions or 92% growth compared to the first quarter of this year.

The net profit is Bt145 millions while last year's net profit was Bt16.4 millions. The dramatic increase in revenues at nine times or 800 % higher than last year came from an efficient management of overall music business as well as a growth in high-margin business like selling music content through digital distribution. Moreover, there is a contribution from world Cup project that enhance the company's net margin from 3% last year to 14% this year.

Thanks to the exclusive TV broadcast rights for the 2010 FIFA World Cup South African that brought a great success to RS. The one-month long World Cup live broadcast project brought success in term of the audience rating and revenue that can be divided into three groups. The first revenue came from sponsors. The second was related activities featuring I Love World campaign, Fun World Cup Tips Press *2010 and nationwide On Ground Activity. The last income came from the copy right fee which earned from those restaurants that broadcast the World Cup for their commercial. The revenues from World Cup business can earn Bt447.53 million. This key income skyrockets over 3,368.5% growth generating more than last year for Bt434.63 millions.

The other business that also generated a large income is Fully Digital Music which earns over Bt267.39 million. It earns more than last year's same period for Bt82.77 million or 44.8% growth. Thanks to Digital Distribution strategies that continuous growth helps generate steady income. The unlimited ring tone download campaign *SuperMao 339 gets a wonderful success with over 3 millions members. To celebrate the success, the company launched SuperMao Gold Rush giving away one baht weight of gold everyday.  

Showbiz business can earn Bt114.53 millions in this period which is much more than last year for 1.6% growth. The big activity was Kamikaze Wave Concert that got a warm response. The last but not least is film business of which the revenue comes from new release Sam Yan which earn Bt9.08 millions or 36.9% growth over than last year. Considering total revenue generating during the first six months shows that RS makes continuous growth in term of both income and profit.

"We still focus on being an entertainment and sport content provider throughout the last six months. To maintain steady growth, we concern on every single business and budget management. Political and economic crisis are the main concerns among consumers in making decision, however, people still need entertainment. With our careful marketing plan and strategies focusing on the customers' need, we can surely achieve the annual target," says Darm.