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GMM Grammy Shows 1H15 Net Profit of THB 262 million And Continues Pushing for Music and Digital TV

Back17 Aug 2015

GMM Grammy reports 1H15 net profit of THB 262 million, increasing by 115% YoY, as planned after its business restructuring by focusing on core business which are music and digital TV businesses. For 2nd half of 2015, the Company is continuing to expand growth in Music business by launching more singles and showbiz, while digital TV channels are extending growth both revenue and rating.

Ms. Boosaba Daorueng, Group CEO of GMM Grammy Public Company Limited, said operating results in 1H15 were according to the plan after the Company gradually restructured its business by focusing on core businesses. The disposal of investment in Index Creative Village PCL was a part of restructuring plan. This strategy resulted the Company THB 5,265 million of total revenue and THB 262 million net profit, significantly up 24% and 115% from the same period of 2014”

In 2Q15, the Company posted total revenue of THB 2,259 million contributed from growth of almost all business units. As for Music business, the revenue increased 24% YoY mainly from physical sales, artist and copyright management. The Company has successfully created new and popular singers such as Atom – Chanakan Rattana-udom and Ploychompoo – Jannine Parawie Weigel. Likewise, online media, especially YouTube, has been generating significant income for the Company. Currently, GMM Grammy official channel on YouTube ranked No. 1 in Thailand with more than 5.4 million subscribers and 4,598 million views accumulated. Revenue from concert events also rose as a consequence of several big concert events, i.e. “10-Year Atime Showbiz” which impressed the audiences by the performance of abundant artists and tremendous production. The tickets were sold out every round. In addition, “Body Slam 13” concert received very positive feedback from the rock fan.

One Channel and GMM 25 have been gaining more viewers over the periods and boosting 2Q15 revenue to grow significantly. Prime-time dramas of One Channel i.e. “Roi Leh Sanae Raai” and “Bunlungmek” have been successful in term of viewer ratings because of its mass viewer target. The Channel continues pushing for higher ratings with new blockbuster dramas: action drama “Tawan Tud Burapa”, starring by Pong - Nawat and Son - Yook and broadcasting on Monday and Tuesday, and romantic drama “Jud Ruk Wiwa Luang”, starring by Bie – Sukrit, Noona – Nuengthida and Pang – Ornjira. This program is broadcasting at 8.20 pm on Wednesday and Thursday. For GMM 25, the channel proactively extended its channel schedule by recently launching 25 variety series under its motto “GMM 25 Fun Dramas and Happy at 8PM”. Its flagships series are: all-time favorite drama series “Club Friday the Series 6” in the theme of “Love is not wrong, the wrong is …” , drama for new generation “I Wanna Be Sup’Tar”, teenager drama “GPA Satabun Pun Saap”, romantic sci-fi drama “Devil Lover”. In addition, fancy dramas originated from Thai local song “Mont Pleng Kham Pob” and drama from 6 songs of a famous song writer,Mr. Nitpong Hornak, ”Love Song Love Story” will also be introduces to viewers.

Home Shopping Business: Revenue has continually presented significant growth in the past years. The Company relatively confidence that this business can contribute growth rate of at least 20%.

Through 2nd half of 2015, the Company will continue maintaining its leading position in Music and Digital TV industries. In the case of Music business, after internal process restructuring in order to reduce cost and increase more flexibility, the revenue of Music business will definitely improve. The Company expects to launch at least 70 singles in various categories and organizes more concerts i.e. concerts of “25 Hours” “Potato” “Big Ass” “Bands on the Run”, “Shoulder Festival2”, “20 Years Grammy Gold”, and country’s largest music festival “Mun Yai Mak” which will move to the new location in Petchburi Province to accommodate approximately 120,000 audiences this year. Besides, with all the challenges in Digital TV industry, the Company seriously intends to overcome any challenges and be the one for viewers in digital TV business by its creativity, variety, and unique contents of both digital channels.

Interest Bearing Debt to Equity ratio of 0.59 shows strong financial leverage of the Company. This would enhance Grammy to achieve the business target and sustain its growth in the future.