Letter from the Chairman and Group CEO
The year 2015 appeared to be a challenging year for GMM GRAMMY Public Company Limited due to the economic recession and the incomplete transformation of analog terrestrial television into digital terrestrial television. Nevertheless, the Company managed to perform in a satisfactory manner as a result of the business restructuring in order to refocus on the Company's core businesses; music and digital TV. Therefore, the Company divested the non-core businesses which were SE-EDUCATION Public Company Limited, Index Creative Village Public Company Limited and the publishing business so that the Company could focus on the content creation of our core business such as music, dramas, sitcoms, news and variety shows to ensure diversity, entertainment and quality. Under the "Total Media Solution' strategy through Online platforms such as YouTube, Line TV and iTunes, On-air platforms via radios and televisions and On-ground platforms by way of holding domestic and international events and concerts, the Group is of a leading company with contents that cover all media platforms.
In the music business, there was a major reorganization structure in order to capture our consumers' behavior so that they would be able to access our contents in all channels and lead to the higher revenue growth. By expanding the music platforms, the Company is able to create interesting phenomenon for example on-line channels which the Company had the highest views on YouTube. Furthermore, there was also the collaboration with Line Music in order to expand music listening platforms to be more approachable and reiterate a leading role in music industry where we are part of everyone's life everywhere every time and every day.
In the digital TV business, our digital TV business comprises two channels: "One 31" (Channel Number 31) a high definition (HD) channel and "GMM 25" (Channel Number 25) a standard-definition (SD) channel which aired their first broadcasts in April 2014 using the existing content in the library and started applying new contents since late 2014. We are considered to be in an early stage of the digital TV business due to the incomplete transformation into digital terrestrial television system and the implementation of the must carry rule concerning the rearrangement of digital TV channel numbers which was just enforced early 2016. Despite these challenges, the popularity of One 31 and GMM 25 have been continuously growing making them as one of the most popular channels for audiences which resulted from the remarkable uniqueness and quality of contents such as drama series; Sue Rissaya, Club Friday The Series, Hormones season 3 and singing contest ;The Star. The Company's contents are therefore very famous as seen in many platforms such as Line TV and YouTube. These performances represent the Company's potential to grow further outstandingly.
For the other businesses, O Shopping, home-based shopping service, performed quite well in terms of revenue growth. It attracted huge customer base due to distinctive products, free domestic delivery and the broadcasting format. Besides, there was a major change in the movie business. However, the Company still aims to continue creating qualified productions to entertain movie lovers under the company's name "GDH 559 Company Limited".
Apart from the business operations, the Company was committed to good corporate governance and also recognized that the social responsibility would develop economy, society which impact better environment. There was the great pleasure that the Company received the "Five Stars' rating which represents the "highest rank of excellence' from the Thai Institute of Directors (IOD) for the fifth consecutive year regarding 2015 corporate governance of listed companies. The Company had been classified into the Top Quartile category of listed companies with market capitalization above 10,000 million baht out of the total 588 companies.
For over 32 years, the Company has cautiously conducted its business as well as searching for sustainable growth in order to create shareholders' value continuously in the long term.
On behalf of the Board of Directors, we would like to express our gratitude to our stakeholders including shareholders, customers, business partners, financial institutions, government agencies, media agencies, artists, executives and all employees for all support and great trust in the Company. There was the major motivation to move us forward effectively. We would very much appreciate your continued support as always.