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Published on January 16, 2008

Last year's revenue, yet to be announced, is expected to fall to Bt2.5 billion, due to the withdrawal of loss-making businesses from its portfolio and the unexpected cancellation of magician David Copperfield's Bangkok show, which caused losses of Bt50 million to Bt60 million in the third quarter.

CEO Surachai Chetchotisak yesterday said the company had focused on building its margin over the past two or three years by cutting loss-making television and radio programmes.

RS has expanded into other sectors, such as digital media and organising show-business and sports events, in order to reduce business risks.

The company has eight key businesses in its portfolio divided into two groups: entertainment/sports and media. Its businesses are involved in music, digital media, show business, films, publishing, television, radio and point-of-purchase media.

"The overall entertainment industry has been challenged by the revolution of media technology in the digital era, and we're the first entertainment company in Thailand to adjust over the past three or four years to the technological change. It has involved our thoughts, working culture and business model," said Surachai.

Surachai said the arrival of the digital era was no making having a significant impact on RS and that the company was ready to benefit from the change in technology.

"2008 will be the first year that RS will seriously organise sports content, because the company has been awarded all media rights in Thailand for the Euro 2008 football tournament," he added.

The world's second-largest football tournament will be hosted in Switzerland and Austria in June. RS will start local media events to promote Euro 2008 in April.

Chief operating officer Pornpan Techarungchaikul said music, show business and sports would be the largest business contributors for RS this year. Each will contribute 15-20 per cent of revenue.

"We expect dramatic growth from organising sports content this year. Euro 2008 will help increase the company's revenue from sports from only Bt10 million last year to about Bt500 million," said Pornpan.

RS expects its music business to grow about 5 per cent this year, while its show-business revenue should enjoy dramatic growth of 30 per cent, driven by value-added activities from Euro 2008.

Chief financial officer Darm Nana said the company would invest between Bt200 million and Bt300 million this year in its revenue-making businesses, such as sports and show business, and its support infrastructure, including digital media and information technology.

Kwanchai Rungfapaisarn

The Nation