GMM Grammy down, RS rebounds in Q3
SET-listed GMM Grammy Plc, Thailand’s leading entertainment company, has remained stuck in the mire of the sluggish advertising sector in the third quarter, while its SET-listed peer RS Plc bounced back to profit after last year’s loss.
GMM Grammy reported a third-quarter net loss of 773 million baht in the third quarter, widening from 11 million baht year-on-year. The net loss over the first nine months totalled 761 million baht, expanding from 264 million in the same period last year.
Anchalee Jieratham, GMM Grammy’s head of investor relations, said the company was affected by the economic slowdown and intense competition in the media industry in the third quarter. The group’s total revenue fell by 10.2% to 1.85 billion baht.
But GMM Channel Trading, the operator of GMM25 digital TV channel, reported a rise in third-quarter revenue to 433 million baht, up 20 million year-on-year.
Meanwhile, RS posted a net profit of 124 million baht in the third quarter, up from a net loss of 61 million year-on-year. For the first nine months of the year it posted a net profit of 223 million baht, up from a net loss of 39.1 million baht year-on-year.
Higher profit was primarily attributed to the continuous income and good performance of the company’s Channel 8, which enjoyed growth in ratings, and its health and beauty products, which have become the main revenue driver for the company.
Darm Nana, chief financial officer, said RS broke its own records in every segment with a net profit of 124 million baht, and total revenue of 996 million in the third quarter, a 50% growth from the same period last year.
The company reported that revenue from its media business, which covers television and radio, totalled 470 million baht, down 5.7% from the same quarter last year, but rose by 35 million baht or 8.1% quarter-on-quarter.
Revenue from Channel 8 increased on year and from the previous quarter. Revenue from satellite TV and radio fell against the previous year due to the slowdown in the overall industry.
Revenue from the health and beauty business surged 755% yearon-year for the quarter to 423 million baht.
The company expanded distribution channels through its own digital and satellite television channels, radio stations and online media. The increase in its products and of several partners through telesales channels went as planned.
The company also offered a variety of promotional packages tailored to each product’s target groups via a number of modern trade stores nationwide.
Meanwhile, revenue from the music business dropped 20% to 62.1 million baht, blamed on listeners shifting towards music streaming services.
Although the revenue from music streaming services including YouTube and Joox increased, it was not sufficient to offset the fall in revenue from other channels. However, after the business restructuring and effective cost control, the music business continued to be profitable.
The company also reported a drop of 22.8% year-on-year to 40.6 million baht in its revenue from events business, which comprises concert and marketing activities.
Mr Darm said the company’s overall performance this year remains positive, generating growth for three consecutive quarters as expected despite the economic slowdown.
He believes RS will keep making profits in the next quarter and that spending during the festive season will increase.