RK Media aims to cut losses
RK Media Holding plans to expand its entertainment business lines and is seeking partners in an attempt to become a profit-making firm next year, after recording losses for two successive years.
Given the intense competition in its core business - radio - the company plunged into the red from 2005 to the third quarter of this year, with a Bt54.9-million net loss. "The loss was attributable to a 43.5-per-cent decrease in revenue, or Bt29.75 million. This is because of a slowdown of our clients' advertising budgets," said Kittiwat Manosuthi chief executive officer of the company. "The competition was also driven by the increase in community radio stations. Another cause of the loss was we booked Bt19.09 million as asset depreciation for our subsidiaries RK Media and IT World Media," he added. The company reorganised itself and Kittiwat was appointed CEO. He said that to catch up with present trends, the company would improve the content of its radio and television business to enable it to generate more revenue. "We'll try to add more value to our programmes. The change should be seen from next year," Kittiwat said. According to Kittwat, the company would not be able to generate any profit in the radio business due to stiff competition and as there's no clear policy on how to handle community radio stations. Therefore, the company would either look for business partners or a merger and acquisition. "To change the direction of the business during this time is very challenging for me. This is a turning point as the company has more than Bt100 million in accumulated losses and is facing further losses. Although we are about to operate new business lines, it takes time to prove them," Kittiwat said. He added that final quarter results should be better on a quarter-on-quarter basis as the company didn't set aside reserves for doubtful debts and extra expenses for its subsidiaries' asset depreciation. Siriporn Chanjindamanee The Nation
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