"RS" becomes Thailand's media leader Aiming to break record in profitability

BackJan 12, 2015

RS starts the New Year with a bang, announcing its plan for the Golden Goat year. It will adjust its target to become a leading media company under the concept "Media Revolutionist 2015", using corporate redesign as its strategy. Every element will be redesigned, including content, customer and staff management, and branding, to push the company forward as a full-scale media organization in order to become Thailand's TV industry leader. This year, it expects to generate 4.6 billion baht income, breaking its record with the remodeling of its business and fully entering the digital TV industry for the first year.

Surachai Chetchotisak, Chief Executive Officer of RS Public Company Limited, said that in 2014, Thailand was very alert about the transition into the digital TV era, starting in April 2014. RS, who has been in the entertainment industry for over 30 years, has come up with a strategy to become a Media Revolutionist, tackling the media industry through digital TV, satellite TV, and radio stations. Its channels are Channel 8 Digital TV, Channel 2, Sabaidee TV, U Channel, Cool 93 radio station which is an all-time number one station, and 88.5 Sabaidee Radio station. These channels generate great profits for the company. Meanwhile, it will continue its music business, which is its expertise, but the structure will be adjusted to be in accordance with its media business in order to generate maximum benefits. At present, the company's business includes three core businesses - media, music, and event.

"Today, RS is not just a music company as it was known for in the past. Our management team might be the same, but our business model has been adjusted based on our experience and up-to-date vision to keep up with the changing nature of the industry. We have adjusted our target to become a full-scale media organization. That changes our structure in terms of revenue and profits entirely. This year, our strategies and directions are toward becoming Thailand's TV industry leader," he said.

This year, its strategy is Corporate Redesign, revamping every element including content, customer and staff management, and branding, to push the company forward as a full-scale media organization in order to become Thailand's Media Revolutionist 2015. Its content will be improved to be more accessible and diverse, and there will be a synergy between its content and media businesses. The profit target for this year is 4.6 billion baht, 80% from media business, 10% from music business, and 10% from event business. The company is positive that its net profit margin will be at 15%. The profit is expected to break the company's all-time record, thanks to the remodeling of the business and fully entering the digital TV industry for the first year.

As for Thailand's TV industry this year, opportunities for growth still abound, resulting in heavy advertising spending in the TV media. This is because the digital TV system, which was introduced last year, is becoming clearer and the viewers are more familiar with this new viewing experience. Content will be even more important now because only the channel with the best content can win the audience. To fully enter the digital TV competition RS has prepared better dramas, music programs, sports content, and game shoes to will appeal to the audience, meeting different target groups. This will result in better revenue and capital management, as well as better performance and achievement. The goal is to become Thailand's TV industry leader.

RS has proven that content is king. It has changed its business from a music company and content producer company into a full scale media company. This year, RS will be a game changer of the TV industry in Thailand.

"From the success of our media business management, we are financially strong enough to invest more than a billion baht into the production of our content, to catch the eyeballs and become the best of Thailand's TV. We have prepared more than 300 million baht capital expenditures (CAPEX) to improve our production and broadcasting system to set a new national standard. We have a good capital structure and excellent financial health, so we do not need any capital increase this year. We expect that earnings per share (EPS) will grow significantly from now on," he concluded.