RS gives generous dividend, higher than the first half of the year, after reaching a new high and making record-breaking 4.3 billion baht revenue

BackFeb 25, 2015

RS is over the moon with its performance in 2014 and announced that it will  pay the dividend of 30 Satang per share after having made a new record with its 4.3 billion baht revenue, the highest in the company’s history. Its profit in 2014 was 371 million baht, and this year, it is confident that it will make 4.6 billion baht revenue. In the first two months of 2015, Channel 8 is looking very optimistic, reaching number 4 in Thailand and aiming to be at number 3 by year end.

Ladprao – RS Public Company Limited chief financial officer, Darm Nana said that in 2014, the company generated 4,306.5 million baht, which was a 24% growth from the previous year. The amount broke the company’s revenue record, being the highest it has ever seen over the past three decades. Its net profits stood at 371 million baht, which is a significant growth that reflects RS’s strong financial status. Shareholders can get ready for good news. The board will consider paying 18 satang dividend per share, in addition to the 12 satang interim dividend paid earlier. In total, the annual dividend is 30 satang per share. The motion will be proposed in the shareholder’s annual general meeting on April 22.

The company’s revenue comes from three businesses. The media business generated 3,356.8 million baht, or 78.7% of the total revenue. The music business generated 457.8 million baht, or 10.6%. The event business made 234 million baht or 10.7%.

For its media business, the main breadwinner is Channel 8, which began digital broadcasting officially in the second quarter of 2014. Its utilization rate has increased gradually, and the advertising fees were increased throughout the year. The most popular programmes in 2014 were Siang Sawan Pichit Fan and new dramas such as Sab Sang, Dong Dok Ngew, Pua Chua Krao, Ching Rak Hak Sawat, and Mia Thuen. Meanwhile, Channel 2, Sabaidee TV and You Channel were also satisfactory, with higher ratings than most digital TV channels, and ranking number one among satellite TV in each category.

Its music business generated income from CD and MP3 sale, which dropped along with the rest of the music industry. However, the company has seen higher advertising revenue since it broadcast its content on its YouTube channel. The number of audience has grown increasingly. Meanwhile, the event business decreased thanks to the political unrest, which resulted in fewer concerts and marketing activities. However, the projects that RS organized last year were all successful, such as D2B Concert 2014, Kamimaze Dance NeramitConcert 2014, Khon Tai Hua Jai Sua Concert,Sabaidee On Tour 2014, Sabaidee Roadshow, and School Music Lover.

This year, its performance is looking very positive and is going according to plan. The goal is to generate 4.6 billion baht revenue and 700 million baht net profits. In the first two months of this year, there have been signs of improvement following the advertising rate hike for Channel 8, which has climbed up to number four nationwide in a short period of time.  It has about 200,000 viewers per minute, due to the rescheduling of programmes earlier in January and addition of new content, which has increased from 12 hours per day to 15 hours per day, or a 25% increase. Its highlight content includes 12 new dramas throughout the year, increased from 5 last year. The recently introduced dramas Mae Luak Kerd Dai and Waen Thong Luang are very successful so far. It is confident that the channel will become number three by the end of the year, with 400,000 viewers per minute. Its utilization rate is expected to definitely reach 70% by year end.

Around the end of 2014, RS restructured its music business. Its music content is now perceived as upstream content which can be built on to generate further revenue for its media business – Sabaidee TV, You Channel, Cool Fahrenheit 93, and Sabaidee Radio 88.5, strengthening its already-strong capacity. So far, RS seems to be on the right path, and it is expected that tangible results will be seen this year.