Letter from the Chairman and Group CEO
The increasing importance in digital technology has created challenges in almost all industries, especially in media and entertainment business when customer’s behavior has mostly evolved into the digital world. All this time, GMM Grammy has focused on implementing business transformation into digital platform. It aims to efficiently manage organization, technology, and personnel in order to produce creative works based on the core competency in media innovation and finest contents under total media solution strategy, which can be boundlessly extended and maximized with unlimited potential.
In 2016, the Group operating performance shown substantial improvement with a constant drop in net loss driven by the leaping growth of digital TV operation, together with efficiency in utilizing the Group resources for utmost benefits, and scale economy derived from effective organizational management. Throughout the year, music business remains the flagship and key contributor to the Group performance, with digital technology gaining higher importance in music production and marketing as well as creating widen opportunities through digitization for Thai music to expose to international market, leading to several hundred millions of views recording in social media world. Indeed, the Company has actively engaged in digital platform development to provide services that are more up-to-date and offering innovative music listening experiences. The Group emphasizes on monetization of the invaluable GMM content library possessing a strong branding and unlimited potential to generate service revenue across all platform, as evident from the formation of new business unit ‘GMM Bravo” as a content creator providing “New Content Solution” by transforming massive library including music and artists and developed into exclusive contents both TV series and variety shows across multiple platforms covering digital TV, Line TV, and exclusive partner deals, with the potential to expand towards music community, merchandising, and events. While showbiz, radio, and other businesses including movie and home shopping remained popular and got positive responses from the market, which greatly support the overall growth of the Group Company.
Both digital TV channels had overwhelming success from prime-time contents that became talk-of-the-town during the year, leading to skyrocketed growth in channel rating and gained trusts from business partners in producing quality contents striking right to the target group through the most accessible channels, which addressed media advertising objectives of media agency, products and brands to implement an effective advertising plan, altogether leading to a significant growth in revenue from digital TV business over previous year, along with a sharp drop in net loss for 2016.
Apart from driving a steady and securing growth of business, the company was committed to good corporate governance and sustainable development. It has been a great pleasure that Thai Institute of Directors (IOD) awarded the company the ‘Five Stars’ rating which represents the ‘highest rank of excellence’ from good governance assessment of the listed company in 2016 which continued for a sixth consecutive years so far. Moreover, the company was rewarded from the achievements with excellent corporate management and administration following good corporate governance, responsibility, and doing good deeds for the welfare of society.
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 contribution to drive for the Company’s excellence in creative produce, service and administration in order to deliver a profitable return to shareholders over the long term, as well as moving forward a healthy development in media and entertainment industry for the nation and society.