"GMM Grammy" reported Net profit from the existing businesses posted a strong growth of 50%YoY
Miss Boosaba Daorueng, Group Executive Chief Officer, GMM Grammy PLC announced that
GMM Grammy divides its business portfolio into 2 categories, namely existing and new business. Existing businesses comprise music, digital, media, movie, event management, and animation businesses. Furthermore, new businesses include home shopping and satellite TV businesses. Operating results from each business can be summarized as follows. In Q2-13, revenue from existing businesses, totaled THB 2,166 million, growing 4% from Q2-12. The growth was mainly driven by TV business and Movie business. “Pee Mak Phra Khanong”, the movie released this quarter generated all-time high box office revenue of THB 568 million while total revenue reached THB 1,000 million. Revenue from new businesses totaled THB 544 million.
The company reported the net profit from the existing business posted a strong growth of 50%; while investment in new businesses had yet reached the break -even point. This resulted in a net loss for Q2-13 of THB 216 million.
For the second half of 2013, GMM Grammy is developing news services for music and digital service (Music Streaming) to be launched by the end of year 2013. In addition, it plans to organize several big concerts and music events during the course of the year, namely Grammy Happy Facetival: Party Reunion Concert, Khon nok & Dok mai: Secret Garden Concert, Bunlunitibhawa 21 years: Pang Nakkarin Klingsak, Black Night Concert Beautiful Broken Heart, DJs on Stage VS The Star, 6.2.13 Dance Fever. For the musical play, “Ladda Land” will be performed in the third quarter. For media business, it is expected to grow along with the overall economy.
For Satellite TV business, GMM Grammy will continue to expand the GMM Z satellite TV platform, by focusing on selling STB bundled with Pay TV package to encourage customers to try out our Pay TV service. GMM Grammy has acquired the broadcasting rights of 27 channels from FOX International to strengthen its Pay TV service. Until the end of Sep-13, 26 channels from FOX are offered to all GMM Z customers on a free trial basis. Sale of new Pay TV packages with channels from FOX will commence in Oct-13.
In addition, GMM Grammy is preparing for the auction of the Digital TV license, to be held in the second half of 2013, in terms of both production capabilities and financial support. It aims for 3 licenses, Variety - HD, Variety - SD and Kids and Family. In order to shorten the launch time of digital TV, the “ONE” channel has been created and currently broadcasted on satellite TV platform. The “ONE” channel successfully produced quality and highly-rated programs. For example, “Hormones: Waiwawun” series had been talk of the town and reached an unprecedented 70 million views on YouTube (for 11 episodes). In addition, “The Side Stories”, sequels from 8 top-ranking movies will also be broadcasted on the “ONE” channel. On the back of Hormones series’ success, advertising slots for “The Side Stories” have been fully booked.
The Extraordinary General Meeting of Shareholders No.1/2013 of GMM Grammy Public Company Limited, held on August 9, 2013, has resolved to approve the decrease of the registered capital by Baht 291,153, from Baht 530,556,100 to Baht 530,264,947 by eliminating 291,153 unsubscribed shares at the par value of Baht 1, and the increase of registered capital, by Baht 106,052,989 from Baht 530,264,947 to Baht 636,317,936, through the issuance of 106,052,989 ordinary shares to the existing shareholders at the par value of Baht 1 with the ratio of 5 existing shares to 1 new ordinary share, at the offering price of Baht 10 per share. The purpose of this capital increase is for Strategic Investment in Digital Terrestrial TV, which will add value to the existing business. We’re aiming to become the “King of Media & Contents of Thailand”
The Company has assigned AIRA Securities Public Company Limited as the Right Offering Share Subscription Agent that will occur during the period of September 2-6, 2013. The sign “XR” will be posted on August 16, 2013. The Record Date is scheduled to be on August 20, 2013.
Miss Boosaba said “We would like to thank you our shareholders for your trust and confident. This capital increase has strengthened our equity base. It will provide long term sustainable growth and return on equity.”