The new sports unit, officially launched yesterday, is expected to earn almost Bt1 billion in revenues from each World Cup - Bt300-Bt400 million more than earned by DhosPark, the former holder of broadcasting rights for the event in Thailand.

Under the joint-venture agreement, RS Plc acquired a 50-per-cent stake in International Broadcasting & Sport Challenges, a sports-content service provider and organiser of local and international sporting events, which later changed its name to RS International Broadcasting & Sport Management.

RS Plc has already invested Bt180 million in the joint venture.

Part of the investment will pay for the broadcasting rights for the two World Cups.

Surachai Chetchotisak, chief executive officer of RS Plc, said that RSbs had got the broadcasting rights for the World Cup in all media platforms in addition to free and cable TV. These include broadband/Internet, mobile phone and even home entertainment products such as VCD and DVD, which would create a lot of business opportunities for the company in the future.

"We will lead the next World Cup tournament with aggressive marketing activities, which will generate income to the company from the first year. If they get it right, they can make a profit margin of almost 40 per cent," said Surachai.

He said that in addition to the World Cup, RSbs has expressed interest in bidding for the broadcasting rights of other international football events - including the European Championship in 2008.

"We will conduct on-ground activities for the FIFA World Cup. We can join with business partners to organise a promotion campaign so that the winners will have a chance to visit the World Cup's stadiums. World Cup tickets will be a powerful tool in our promotion campaign," said Surachai.

Vorawut Rojanapanich, chief executive officer of RSbs, said the company planned to set up an IT centre for all sport content in the near future.

Kwanchai Rungfapaisarn

The Nation