GMM GRAMMY shows its success of GMM Z performance. Over 10 billion baht revenue, 25% growth in 2012.
Ms. Boosaba Daorueng, Group Chief Executive Officer of GMM Grammy Public Company Limited, Thailand's largest entertainment company said GRAMMY was highly achieved on the establishment of GMM Z satellite TV platform with 1.5 million satellite boxes sold last year. The company targets to double its sales in order to generate revenue from pay -TV and pay-per-view services, which expect to boost company's revenue this year.
Grammy's total revenue grew 25% to 11,756 million baht in 2012, surging 2,368 million baht from 2011. Existing businesses which comprise Music, Digital, Media, Movie and Event Marketing, still dominate Grammy's revenues, amounted to 9,184 million baht, or 78% of total revenue. Music business remains GRAMMY's core business. Meanwhile, the new business, including the broadcasting and other businesses, generated 2,573 million baht of revenue, or 22% of total revenues, higher than 10% of total revenue in 2011.
Ms. Boosaba said the existing business will continue to grow whereas the broadcasting business has high growth potential. In 2012 the company was in the investing period of the broadcasting business, hence resulted in the net loss of 347 million baht.
GRAMMY is confident that its operating results will significantly improve from this year due to the strong performance of existing business units and the rapid growth from new business unit, which will compliment GRAMMY's overall portfolio. The company launched its pay-TV service under GMM Z Pay TV on February 16, with the affordable pricing concept, and received a good feedback. The firm aimed to attract pay-TV subscribers at approximately 15-20% of its total set-top box base this year. GMM Z also plans to launch high-definition (HD) set-top box at the end of March, that will fulfill GMM Z's products' line and also serve every target group of consumer needs. GRAMMY is also preparing for digital TV's bidding.
"This year, GRAMMY proudly presents over 20 concerts. The upcoming concert is the legend one "6-2-13" featuring artists such as : J Jetrin, Christina Aguilar and Tata Young, on May 4 to 5" Ms. Boosaba said.
Apart from concerts, it has imported masterpiece performance, "The Phantom of the Opera" which will be performed in Bangkok at Muangthai Rachadalai Theatre. GTH plans to launch 3 to 4 movies in this year, starting with 'Pee Mak Prakanong', an adapted screenplay movie from Thailand's ghost legend.
"Grammy plans to utilize its internal cash flow and debt financing for the investment in 2013. Currently, the company has the interest bearing debt to equity ratio of 0.94 times," Ms. Boosaba concluded.