GMM Grammy shows 2015 revenue growth of 4.7% Revealing key success strategy 'Total Media Solution'
GMM Grammy reports 2015 total revenue of THB 9,704 million, increased by 4.7% YoY mainly from continuous growth of Music and Digital TV businesses. Net loss is THB 1,145 million, improving 53% from last year. Desiring to be content provider with total media solution strategy.
Ms. Boosaba Daorueng, Group CEO of GMM Grammy Public Company Limited, said total revenue of 2015 was THB 9,704 million, a rise of 4.7% YoY while net loss was THB 1,145 million, improved by 53% YoY. In 2015, the Company booked several extraordinary items which were one-time transactions including gains from investment portfolio restructuring, for instance, gain THB 959 million from the disposition of investment in SE-EDUCATION Public Company Limited, Publishing group and Index Creative Village Public Company Limited together with the record of an impairment loss of THB 1,030 million for CTH Public Company Limited. However, such loss was not counted as cash item so it does not have any negative impact on the Company’s liquidity.
Overview of major business operations in 2015 are as follows:
Music Business reported revenue of THB 3,252 million, a rise of 14.4% from last year. This was the result of business reorganization which fulfilling consumers’ needs of our contents and capable to increase revenue from all sources. Additionally, the support was from the rebound of Showbiz business and continuous growth of online channels i.e. Line application and YouTube which 2 of Grammy channels ranked Global Top 100 in term of most viewed, namely, GMM Grammy Official channel that ranked No. 1 of most viewed channel in the Thailand and No. 16 globally while Genierock channel ranked No. 2 in the country and No. 77 in the world.
Although, Digital TV Business has been facing several challenges such as regulations and government’s support that affected advertising spending, the popularity of One 31 and GMM 25 channels has been rising tremendously. In 2015, One 31 channel showed significant growth regarding financial and rating aspects which drove by outstanding contents especially prime time drama, sitcom and variety programs. The channel targets to increase revenue growth by 80% in 2016. In the meantime, GMM 25 illustrated substantial advancement both revenue and brand awareness. The channel continues to persist with schedule rearrangement and variation of contents i.e. all-time favorite series ‘Club Friday the Series’ big project drama ‘O negative’ and entertainment variety shows ‘Chae’ ‘The Red Carpet’ Korean based program ‘M Countdown’ in order to catch up with new generation trend. GMM 25 intends to reach revenue growth of around 85% in 2015. Apart from the major TV screen channel, contents of the Company appear in various channels i.e. Line TV and YouTube from its greater favor and higher demand, representing competitive edge and readiness to extend to all platforms. This would definitely be part of the success factor of Digital TV business.
Others Business, for instance, Home Shopping business ‘O shopping’ posted solid growth. In 2015, it showed the revenue of THB 1,738 million, up by 53% from the strengths such as differentiated products, free delivery service and format of the show. Also, sales per day at the end of 2015 increased to more than THB 5.5 million per day with customer base of more than 900,000 persons. As for Movie business, despite the recent notably change, the Company still focuses on creating high quality movies to satisfy and bring happiness to moviegoers under the company name ‘GDH (559) Company Limited’
Towards 2016, Grammy will enthusiastically expand the business through total media solution strategy. The Company’s contents should be broadened and broadcasted in all channels; On-line, On-air, and On-ground which eventually founded the role of content provider and trendsetter. The Company truly believes that this path is right and this year is going to be the interesting year for Grammy.
Financial position of the Company remains healthy with interest bearing debt to equity ratio of 0.80 at present.