TV Direct upbeat after weak Q1

SET-listed

TV Direct Plc, a home shopping operator, is confident of achieving its full-year revenue target of 4 billion baht, up 17% from last year, because of an improving economy in the second half.

Songpol Shanmatkit, managing director of TV Direct, said the TV home shopping market is expected to grow 5-10% this year as consumer spending power strengthens in the second half.

The TV home shopping segment is expected to benefit after the government pours investment into infrastructure projects this year, kick-starting the economy, Mr Songpol said.

The number of TV home shopping customers is projected to increase by about 1 million a year over the next few years, up from 5-6 million now, he said.

More consumers will turn to TV home shopping because it allows them to avoid driving through traffic to a mall, said Mr Songpol, who is also chairman of the TV Home Shopping Association.

He said TV home shopping is one of the fastest-growing retail segments and offers convenience for customers to buy products after watching demonstrations on TV.

TV Direct’s first-quarter performance was weak. Revenue fell by 9.2% year-on-year to 847.2 million baht, which the company attributed to the impact of the national mourning period. Last year’s revenue totalled 3.44 billion baht.

The company reported a loss of 10.4 million baht in the first quarter, compared with a net profit of 35.4 million a year earlier.

Mr Songpol voiced optimism that the company’s revenue and profit would improve in the second half, driven by the economic recovery and synergy with 3-RD Co, a call centre and direct marketing company under GMM Grammy Plc.

“TV home shopping is gaining popularity,” he said. “Products on TV home shopping channels differ, but the product details, prices and warranties are clearly displayed.”